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Message
Homebuilders cancelling contracts to sell for more on market
Posted on 3/28/22 at 1:27 pm
Posted on 3/28/22 at 1:27 pm
Looks like the contracts they offer allow this.
LINK
Homebuilder is claiming they had no choice, need to sell for more money in order to cover higher than expected costs.
What a mess. Maybe some builders will appear with more favorable contract terms.
LINK
quote:
Hanna James signed the contract with the contractor in February 2021, for $295,000, to build a brand new house, in a brand new south Fulton County subdivision, just off of South Fulton Parkway and Highway 92.
The home was supposed to be ready for her to move in by September 2021.
She visited the construction site often, watched her new home take shape, took photos of every stage of the build and paid nearly $5,000 for various additional optional upgrades.
Completion of the home was delayed repeatedly. But she was scheduled to close in January 2022.
One week before the closing, her agent told her the buyer, Heatherland Homes of Atlanta, was suddenly backing out of the contract and raising the price by tens of thousands of dollars.
“The message from my agent at that particular time was that the builder had decided to terminate all existing contracts,” James said Wednesday, “and he was increasing the price of the home, and if we wanted to move forward we had to enter into a new contract with the new price of the home.”
The new asking price then, she said, was $355,000, which she could not afford. And now, online, the price is posted at $370,000, 25% higher than James’ original contracted price of $295,000 from a year ago.
“I was hurt, a little bit of disbelief,” she said, and she understands that the builder was within his legal rights to do what he did.
She added, “But I think ethically, no, he’s dead wrong.”
James did receive a refund of her earnest money, $3,500.
But two months after the builder canceled her contract, she still has not received a refund for the nearly $5,000 she paid last year for the upgrades.
“To wait a week before closing to tell someone that you’re going to increase the price of the home I think is ethically not--that’s just not right.”
Homebuilder is claiming they had no choice, need to sell for more money in order to cover higher than expected costs.
What a mess. Maybe some builders will appear with more favorable contract terms.
Posted on 3/28/22 at 1:30 pm to LSUFanHouston
quote:
Homebuilder is claiming they had no choice, need to sell for more money in order to cover higher than expected costs.
This would have been known more than a week before closing. Someone is leaving out details.
Posted on 3/28/22 at 1:30 pm to LSUFanHouston
Do that homebuilder have $5K worth of arse? Cause I’d be taking my $5Gs outta his arse.
Posted on 3/28/22 at 1:30 pm to LSUFanHouston
This is just a shitty deal all the way around to be honest.
But a week before closing is extra shitty, I would think the contract would have at least 3 months before completion stipulation
“American dream” is going to be a tough sell for an entire generation of young adults at this point, not good long term. We need them optimistic and driven and not angry, frustrated and spinning their wheels
But a week before closing is extra shitty, I would think the contract would have at least 3 months before completion stipulation
“American dream” is going to be a tough sell for an entire generation of young adults at this point, not good long term. We need them optimistic and driven and not angry, frustrated and spinning their wheels
This post was edited on 3/28/22 at 1:33 pm
Posted on 3/28/22 at 1:31 pm to LSUFanHouston
quote:
Homebuilders cancelling contracts to sell for more on market
My brother had this issue in frisco. He was on the wait list for a year, he was supposed to be in the next batch to get called to start building.
contractors are now just building whatever and selling it for 100k-200k more than they initially wanted.
this bubble is getting huge.
Posted on 3/28/22 at 1:31 pm to Eighteen
Well what’s the alternative? The “Eastern Europe nightmare”?
Posted on 3/28/22 at 1:33 pm to LSUFanHouston
Sounds like the basis for a lawsuit depending on the language in the contract.
Most contractors can't just unilaterally walk away after signing and demand more money once stuff starts getting more expensive.
Most contractors can't just unilaterally walk away after signing and demand more money once stuff starts getting more expensive.
Posted on 3/28/22 at 1:33 pm to htran90
quote:
contractors are now just building whatever and selling it for 100k-200k more than they initially wanted.
And how many of those are being bought by a hedge fund?
Posted on 3/28/22 at 1:35 pm to NYNolaguy1
quote:
Sounds like the basis for a lawsuit depending on the language in the contract.
Most contractors can't just unilaterally walk away after signing and demand more money once stuff starts getting more expensive.
My guess is the builder drafts the contract and won't sign any other, and the contract gives the right to the builder, and only the builder, to get out of the contract with only a refund of the earnest money.
Posted on 3/28/22 at 1:36 pm to Eighteen
quote:
But a week before closing is extra shitty, I would think the contract would have at least 3 months before completion stipulation
Yeah, they knew this months ago.
quote:
“American dream” is going to be a tough sell for an entire generation of young adults at this point, not good long term. We need them optimistic and driven and not angry, frustrated and spinning their wheels
And people wonder why more and more youth are at least willing to listen to the demnocrat ideas of socialism and the like.
Meanwhile the 70 year olds making these decisions just want to trash the youth and call the lazy and spoiled.
Posted on 3/28/22 at 1:38 pm to tigerinthebueche
quote:
Well what’s the alternative? The “Eastern Europe nightmare”?
This is called sticking your head in the sand.
Posted on 3/28/22 at 1:38 pm to LSUFanHouston
Moral of the story is don't sign garbage contracts and you can avoid this scenario.
Big name construction contracts will have a bonding requirement to ensure this scenario doesn't happen. Also there will be a consideration often for economic adjustment if things get crazy commodity wise.
Big name construction contracts will have a bonding requirement to ensure this scenario doesn't happen. Also there will be a consideration often for economic adjustment if things get crazy commodity wise.
Posted on 3/28/22 at 1:42 pm to htran90
(no message)
This post was edited on 4/15/23 at 8:02 am
Posted on 3/28/22 at 1:48 pm to LSUFanHouston
Happened to a co-worker. They put the deposit down. Picked the lot and design. Agreed to a price and then got hit up for $50k extra because of “market conditions”
They claimed the lumber price but it was really because the market was going bananas
This late 2020/early 2021
They claimed the lumber price but it was really because the market was going bananas
This late 2020/early 2021
This post was edited on 3/28/22 at 1:52 pm
Posted on 3/28/22 at 1:48 pm to LSUFanHouston
If more companies can get over their "butts in seats" mentality, people can have more ability to live where they choose. I'd love to move back to a small town, where I could buy a huge house with hundreds of acres for what my house here in ATL metro costs.
We sold my grandmother's very nice house in a rural south Georgia town for under $50k!
4 br, 2 ba
Huge kitchen
butler's pantry
huge dining room
insanely large living room
sitting room
huge covered porch
4 car carport
work shop
barn/garage with space for multiple vehicles, etc
full basement with wood burning fireplace
Huge bonus room
2 full attics that could be used as rooms - one has bunk beds that we used when we were kids. No short ceilings to bump your head.
2 acres
There was nothing wrong with the house structurally or cosmetically, it is just in a place where no one wants to move, there are no good jobs.
**********
Contrast that to where I live now? 1980s ranch style 3/2 homes are selling for $500k, bulldozed and a million dollar house goes up in it's place. The median home price here is now over $750k. How could any "young" person ever really move here?
We sold my grandmother's very nice house in a rural south Georgia town for under $50k!
4 br, 2 ba
Huge kitchen
butler's pantry
huge dining room
insanely large living room
sitting room
huge covered porch
4 car carport
work shop
barn/garage with space for multiple vehicles, etc
full basement with wood burning fireplace
Huge bonus room
2 full attics that could be used as rooms - one has bunk beds that we used when we were kids. No short ceilings to bump your head.
2 acres
There was nothing wrong with the house structurally or cosmetically, it is just in a place where no one wants to move, there are no good jobs.
**********
Contrast that to where I live now? 1980s ranch style 3/2 homes are selling for $500k, bulldozed and a million dollar house goes up in it's place. The median home price here is now over $750k. How could any "young" person ever really move here?
This post was edited on 3/28/22 at 1:51 pm
Posted on 3/28/22 at 1:50 pm to LSUFanHouston
Most on the OT buy their houses with cash.
This post was edited on 3/28/22 at 1:51 pm
Posted on 3/28/22 at 1:53 pm to htran90
quote:Yep. I purchased 20 years ago at $365k.
this bubble is getting huge.
3800sf, 4BR, 3BA, 3 car garage (on the side of house, not in front), media room, dining room, breakfast room, front office (or 5th BR), stone and brick, culdesac location with 18,000sf lot with pool.
Now, 2 blocks away, a new development that is just one street, two blocks long, has started being built. Homes are 3200sf max, 2 car garages on the front, with postage stamp lots. Starting prices at $1 million+.
This post was edited on 3/28/22 at 1:53 pm
Posted on 3/28/22 at 1:53 pm to LSUFanHouston
I had to sue recently on this exact issue. Do not take it lying down.
Many scumbag builders out there. Do your homework. Also, check the local dockets to see if they've been sued before.
Many scumbag builders out there. Do your homework. Also, check the local dockets to see if they've been sued before.
Posted on 3/28/22 at 1:55 pm to concrete_tiger
quote:
If more companies can get over their "butts in seats" mentality, people can have more ability to live where they choose. I'd love to move back to a small town, where I could buy a huge house with hundreds of acres for what my house here in ATL metro costs.
The generation that can't get over that mentality, is the same generation that is running the hedge funds that are pricing people out of the market, the same generation that calls the youngins lazy, the same generation that runs Congress and wants to send your sons into war, etc.
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