New Construction - Buyers rights before closing

What is the name of your state? Michigan
My husband and I are in the process of building a new home in a new subdivision. We were the 3rd house that was purchased and our home should be complete and we should be closing on Nov. 21. We were told that we were purchasing at pre-construction prices 5 months ago when we put a deposit down. Well just this week we saw on their website that they have lowered the BASE price our our home by $5,000.00 to future homeowners!! This has really upset us. Do we have any rights to the base price before we close on the house? I won't even go in to detail on how unhappy we are with the builder as it is, but this one really hit us in the face! Please advise. Thank you - LC

What is the name of your state? Michigan
My husband and I are in the process of building a new home in a new subdivision. We were the 3rd house that was purchased and our home should be complete and we should be closing on Nov. 21. We were told that we were purchasing at pre-construction prices 5 months ago when we put a deposit down. Well just this week we saw on their website that they have lowered the BASE price our our home by $5,000.00 to future homeowners!! This has really upset us. Do we have any rights to the base price before we close on the house? I won't even go in to detail on how unhappy we are with the builder as it is, but this one really hit us in the face! Please advise. Thank you - LC

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You can try to complain about it, but if you've already signed the contract and addenda, you're on the hook for the costs. Why would the builder concede anything to you at this point if he's so obviously hurting for revenue?

Conduct better research on current market conditions before you decide to build a house. Anyone who's been in the business for a while can tell you that there is a recession going on in the housing industry right now. Mortgage rates are pressing higher, demand for new homes is down, and people are not seeing the unbelievable increases in equity that they've enjoyed for nearly ten years.

Would you be pitching the same bitch if the market had moved the other way, and people getting into these homes were paying 5K more than you? I think not.

The real problem you'll run into down the line is that having paid more for your home than the surrounding homeowners, you might have trouble getting a comparable value if you try to sell the home anytime soon.

Buyers Rights

The builder may be willing to consider a concession because you have the ability to be the best, or the worst, marketing tool available. New potential buyers will likely solicit your opinion while visiting the area, especially if you're walking around outside.

Be certain that you are comparing apples with apples. Lowering the base price does not mean that they haven't increased the cost of some of the upgrades to level out the cost. He can't take too much of a loss, as, his lender has likely told him that he must move inventory before they will loan him more money. There's very little money to be made with a lot that is waiting for a building.

Also the location of the lot (corner) may affect the price. All you can do is ask.

This is happening all over because builders can't sell homes and are cutting prices or offering incentives. Whether one chooses to call it the bursting of a housing bubble or whatever, it's happening. Home buyers have been fooled into thinking a house that you live in is an investment. IMO it never was and the idea that it should be gets people into a lot of financial trouble, notably with thinking they have more equity than they really do. Because of this exact problem now, some buyers are backing out of deals even though they lose money, because they fear losing even MORE money if they close on a hosue that's overvalued. And IMO most of these homes are/were overvalued and that is a huge part of why you now have this problem along with thousands of other people. Google.com...housing bubble...