- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Homebuilders cancelling contracts to sell for more on market
Posted on 3/28/22 at 5:34 pm to Basura Blanco
Posted on 3/28/22 at 5:34 pm to Basura Blanco
quote:
So, in this economy, you are calling bullshite on unexpected costs associated with home building materials? Or are you calling bullshite on the developer/builder for doing anything he can under the contract to recoup those costs by increasing the sales price?
I'm calling bullshite that it took until a week before closing for the builder to know he needed 60-70K more.
1
Posted on 3/28/22 at 5:37 pm to LSUFanHouston
Oil companies...
Posted on 3/28/22 at 5:37 pm to LSUFanHouston
Dude. Your post. Awesome. Exactly right.
Posted on 3/28/22 at 5:38 pm to LSUFanHouston
quote:
Homebuilders cancelling contracts to sell for more on market
This has to be infuriating to the person who is building the house.
Posted on 3/28/22 at 5:41 pm to Chucktown_Badger
There are a ton of institutional investors, but their pricing points are much lower...typically sub 300k
This gets solved easily if interest rates rise. The IRR on rental properties decrease substantially in a higher rate environment. At that point those buyers leave the market.
This gets solved easily if interest rates rise. The IRR on rental properties decrease substantially in a higher rate environment. At that point those buyers leave the market.
This post was edited on 3/28/22 at 6:35 pm
Posted on 3/28/22 at 5:42 pm to member12
quote:
This has to be infuriating to the person who is building the house.
In this case, it is the home builder who is building the house. They own the land and paid for every single item and hour of labor that went into the construction of the house, less $3500 in escrow.
Again, it sucks for the buyer, but just like in any residential property transaction, with the exception of escrow, no money or property changes hands until closing.
Posted on 3/28/22 at 5:47 pm to LSUFanHouston
They are all doing this
Posted on 3/28/22 at 5:49 pm to LSUFanHouston
quote:
I'm calling bullshite that it took until a week before closing for the builder to know he needed 60-70K more.
Its a real estate contract. Typically, both parties have numerous options to vacate the transaction up until closing. Doing it a week before hand is a common occurrence. I realize the fact its a future home for the buyer makes it very personal, but at the end of the day, its a business decision done under the terms of a contract.
Posted on 3/28/22 at 5:55 pm to LSUFanHouston
So under the terms of the contract the homeowner can back out too if home prices plummet?
Posted on 3/28/22 at 5:56 pm to LSUFanHouston
Ahhhh the theory of the efficient breach.
Now there is an oxymoron: builder and efficient in the same sentence.
Now there is an oxymoron: builder and efficient in the same sentence.
Posted on 3/28/22 at 5:59 pm to Basura Blanco
quote:If that is the case, you home builders and home builder affiliates are up there on the top of the list of “fricking awful professions” with politicians and journalists.
Doing it a week before hand is a common occurrence.
There is ZERO reason to wait until 1 week prior and you should feel ashamed for defending that practice.
Posted on 3/28/22 at 6:00 pm to GetCocky11
quote:
The US also hasn't been building enough houses since the financial crisis. This problem has been brewing for years.
50,000 people per month through the southern border need places to live too.
Posted on 3/28/22 at 6:02 pm to Eightballjacket
quote:
So under the terms of the contract the homeowner can back out too if home prices plummet?
Without a doubt. And more than likely they would get their escrow back as well if it were for any number of reasons afforded to them under a standard real estate contract. Worst case, in this instance, they are out $3500.
Posted on 3/28/22 at 6:11 pm to Scruffy
frick you, I am not affiliated with any developer/builder of a tract subdivision. Learn to read. I am not defending anything other than a persons ability to read and comprehend a contract. I don't have to call a lawyer or consult USA Today to do that.
And if you had any inkling of knowing what the hell you are talking about, you would understand that a contract works both ways. The chick in the story could have walked into the closing, flipped off the seller for any reason of her choosing and walked right out. And even then, stood a fair chance of getting her escrow money back.
And if you had any inkling of knowing what the hell you are talking about, you would understand that a contract works both ways. The chick in the story could have walked into the closing, flipped off the seller for any reason of her choosing and walked right out. And even then, stood a fair chance of getting her escrow money back.
Posted on 3/28/22 at 6:13 pm to tigerinthebueche
quote:
Do that homebuilder have $5K worth of arse? Cause I’d be taking my $5Gs outta his arse.
Now that we know that violence is an acceptable outlet for anger, I'd be wrecking someone's arse too.
Posted on 3/28/22 at 6:19 pm to Scruffy
quote:
There is ZERO reason to wait until 1 week prior and you should feel ashamed for defending that practice.
Sometimes you don't know your total job cost until the very end. The very end is usually about a week before closing.
I am not saying that's what happened here but just giving some perspective.
Posted on 3/28/22 at 6:19 pm to LSUFanHouston
I see the new price at 355k and I am thinking "damn, that's a good deal". Can't find that for a starter home that needs work in my neck of the woods. Really sucks for a first-time homebuyer right now.
This post was edited on 3/28/22 at 6:21 pm
Posted on 3/28/22 at 6:21 pm to Basura Blanco
quote:
The chick in the story could have walked into the closing, flipped off the seller for any reason of her choosing and walked right out. And even then, stood a fair chance of getting her escrow money back.
Probably not and she would have been sued for specific performance. She probably had zero outs outside of the final inspection, unlike the builder that had nothing to bind them to it. No doubt it was a very lopsided contract.
Posted on 3/28/22 at 6:22 pm to Meauxjeaux
quote:
50,000 people per month through the southern border need places to live too.
Those people aren't buying homes but I guess they could be put in Section 8 housing paid for by taxpayers.
More seriously, where are these people coming from? Where were they living two years ago? Of they are migrating, wouldn't the places they are leaving see excess inventory?
There is something more sinister at play here, IMO. Blackrock nd Vanguard are probably just the tip of the iceberg.
Posted on 3/28/22 at 6:27 pm to LSUFanHouston
quote:that talking point is so overstated
No one who can work from home is moving to overcongested, overtrafficed suburbs of West Houston.
Take the % of Americans who actually work office/white collar jobs
Then take the % of those jobs that are able to work from home
Then, what companies are allowing it, permanently
Then, how many of those people are actually going to uproot their life and move. I think this is much less common than this board would have you think, especially for people with kids
Page 6 of 11
Popular
Back to top
Follow TigerDroppings for LSU Football News