What is the name of your state? PA
Hello. I'm new to these boards and hope someone can assist me. My wife and I signed an Agreement of Sale in May 2006 for a new home. There will be a total of 9 new homes; 3 of which are in progress and about 75% complete. They are considered the "model" homes. We actually reserved one of the other 6 lots and ground was broken today (7/10) on ours and one other. We felt as though we were getting a "pre-construction" price at $329,900 and felt comfortable with that. When we signed the contract, we made a non-refundable deposit of $15,000. We also have a $35,000 upgrade addendum which gets paid directly to the builder at closing.
Now here's the problem. The model home we selected has been listed on MLS for 42 days for $329,900, which is the contract price on our home. It is exactly the same as our house before our upgrades which are separate from the contract. Now today, I notice on MLS that the asking price for this home has been reduced to $299,900!
Needless to say we are very upset. I need to confront the builder tomorrow, but I'm not sure how to proceed. He's a reasonable guy and I can't blame him for reducing the other price if he's having trouble selling it. But on the other hand, if we proceed, we'll be paying at least $30,000 more base price than the buyer of that house, which is directly behind our lot. At worst, I lose my $15,000 deposit. I'm sure he doesn't want to see us walk away, but do I have any leverage? I'm sure he hasn't done anything wrong legally, but does he have a moral obligation to reduce my price as well? This just doesn't seem right. I felt as though we got a good price initially, and now it's the exact opposite. Any advice will be much appreciated. Thank you in advance.
Hello. I'm new to these boards and hope someone can assist me. My wife and I signed an Agreement of Sale in May 2006 for a new home. There will be a total of 9 new homes; 3 of which are in progress and about 75% complete. They are considered the "model" homes. We actually reserved one of the other 6 lots and ground was broken today (7/10) on ours and one other. We felt as though we were getting a "pre-construction" price at $329,900 and felt comfortable with that. When we signed the contract, we made a non-refundable deposit of $15,000. We also have a $35,000 upgrade addendum which gets paid directly to the builder at closing.
Now here's the problem. The model home we selected has been listed on MLS for 42 days for $329,900, which is the contract price on our home. It is exactly the same as our house before our upgrades which are separate from the contract. Now today, I notice on MLS that the asking price for this home has been reduced to $299,900!
Needless to say we are very upset. I need to confront the builder tomorrow, but I'm not sure how to proceed. He's a reasonable guy and I can't blame him for reducing the other price if he's having trouble selling it. But on the other hand, if we proceed, we'll be paying at least $30,000 more base price than the buyer of that house, which is directly behind our lot. At worst, I lose my $15,000 deposit. I'm sure he doesn't want to see us walk away, but do I have any leverage? I'm sure he hasn't done anything wrong legally, but does he have a moral obligation to reduce my price as well? This just doesn't seem right. I felt as though we got a good price initially, and now it's the exact opposite. Any advice will be much appreciated. Thank you in advance.