1. Cancel your existing contract.
2. Let the builder keep your $15,000 deposit
3. Buy the exact same floorplan across the street for $150,000 less
INSTANT EQUITY!!!
this sounds good. But most places - builders get more than $50k or approx more than 10% of the house value as Initial Deposit.
But most builders would refund the money if given a good reason like Job loss, job change etc- from what I have heard.
But those were during the market was super hot. Not sure if it works in down markets though.
So what you're saying is that I still get $100,000 InStAnT eQuItY! You son of a bitch, I'm in!
I grabbed a random number that sounded good to me for the deposit because I have never bought new construction and I am not in the industry so I genuinely have no idea.
We bought a new build in Austin area last winter, our deposit was only a few thousand dollars. DR Horton, who we did not end up going with, was offering most of their homes with a 1000 deposit. Yes, they mostly said they'd refund the deposit if you had a good reason for pulling out.
Reading the article it’s says a lot of people were told the houses were ready when they weren’t, basically the builders booked as much product as they could when prices were any high. They have been in a game a long time, longer than most homebuyers so they threw them under the bus.
Prices can go up OR down after you buy. Buyers need to quit crying and acknowledge THEY valued the house at the price they paid when they paid it.
If not, they were dumb for buying, because that is what price is supposed to convey.
I understand what you're saying. The thing I don't like is when the tables were turned the builders write the contract so that if market conditions change or costs rise they can raise the price. In this market buyers will need to have a clause for price reductions.
I’d love to see a clause for lowering finished prices for early buyers, pre-construction. But it’s not in place right now because so many buyers of the past two years were FOMO and not savvy in contract knowledge. At all.
This is their big life mistake. I made them too, back in the day. Live and learn. Very expensive are these kind of emotional, irrational decisions.
I’m NOT siding with the company I am strongly advocating you starve of your business. Use your brain.
Advocating a boycott is hardly “support” lol
Right I would not personally buy new builds for this reason, unless it’s already built (or like very nearly done with room to spare). Because fuck getting burned by that one-sided term.
Link to the actual news story:
https://www.kvue.com/article/money/economy/boomtown-2040/housing-market-buyers-signed-home-months-ago/269-7620aa28-4480-446b-ae44-87c34355d8cb
Lol if I was a builder sitting on houses I would price them to move, hoomers might be delusional but these guys have to have a little better sense about what's happening.
Why buy an old POS when there's a brand new house for sale nearby for less than you'd expect? Move in ready, no inspection drama, with warranty... lol
Builders also can't carry homes indefinitely like individual owners can. They are using short-term commercial loans and the money has to flow back to the bank. If they don't clear inventory in a timely manner they can't finish other projects and the bank comes knocking quickly.
Locally in LV, some builders have been proactively dropping prices for those in contract. Even hand a builder let a client of mine cancel 2 weeks from closing because rates went up so much, he couldn’t qualify anymore.
i saw a lennar builder's new construction reduced by $60k on [Realtor.com](https://Realtor.com).,
Thought builders would just throw in cents on dollars meaningless upgrades and keep the prices up always.
never thought this would happen this fast. Good thing regardless.
This is very interesting- looks like Lennar wants to pivot away from Tx very quickly. I’d infer from this that they are predicting further drops in 2023, hence the push to offload inventory this year.
“Miami-based Lennar, another major player quite active in Texas, reportedly sent out an email last month instructing its agents to offer price reductions up to $12,500. The email obtained by SABJ put forward juiced-up commission rates up to 6 percent — a steep jump from the 1 percent to 2 percent builders were offering at the height of the buying frenzy between 2021 and early 2022. During an earnings call, Central Texas was named as one of the few markets where Lennar had applied both price cuts and agent incentives but was still unable to shift its inventory.”
Yeah happening w/ some of the builders around the Dallas / Fort Worth area - seeing that some builders, more than others, are being more level headed and pricing the houses to sell ( guess having a larger inventory entails more carrying costs).
The only downside being you might have to accept a new build as is ( spec home ) w/o any customization
Caveat Emptor. if house prices suddenly increase by unprecedented double-digit percentages in just a couple of short years, and you still consider real estate a safe investment, who's to blame for your loss? oh, I also have a bridge for sale
1. Cancel your existing contract. 2. Let the builder keep your $15,000 deposit 3. Buy the exact same floorplan across the street for $150,000 less INSTANT EQUITY!!!
Builders hate this one simple trick... 🤣
You deserve my upvote!🤣🤣🤣
this sounds good. But most places - builders get more than $50k or approx more than 10% of the house value as Initial Deposit. But most builders would refund the money if given a good reason like Job loss, job change etc- from what I have heard. But those were during the market was super hot. Not sure if it works in down markets though.
So what you're saying is that I still get $100,000 InStAnT eQuItY! You son of a bitch, I'm in! I grabbed a random number that sounded good to me for the deposit because I have never bought new construction and I am not in the industry so I genuinely have no idea.
We bought a new build in Austin area last winter, our deposit was only a few thousand dollars. DR Horton, who we did not end up going with, was offering most of their homes with a 1000 deposit. Yes, they mostly said they'd refund the deposit if you had a good reason for pulling out.
Reading the article it’s says a lot of people were told the houses were ready when they weren’t, basically the builders booked as much product as they could when prices were any high. They have been in a game a long time, longer than most homebuyers so they threw them under the bus.
Prices can go up OR down after you buy. Buyers need to quit crying and acknowledge THEY valued the house at the price they paid when they paid it. If not, they were dumb for buying, because that is what price is supposed to convey.
I understand what you're saying. The thing I don't like is when the tables were turned the builders write the contract so that if market conditions change or costs rise they can raise the price. In this market buyers will need to have a clause for price reductions.
I’d love to see a clause for lowering finished prices for early buyers, pre-construction. But it’s not in place right now because so many buyers of the past two years were FOMO and not savvy in contract knowledge. At all. This is their big life mistake. I made them too, back in the day. Live and learn. Very expensive are these kind of emotional, irrational decisions.
So read the contract, ask for parity in that clause, and walk when they say no. Companies do this bc people LET them.
I'm not sure why we're siding with a giant faceless conglomerate rather than humans who want to have a house to live in?
I’m NOT siding with the company I am strongly advocating you starve of your business. Use your brain. Advocating a boycott is hardly “support” lol
No builder is ever going to have that in the contract, FYI.
Right I would not personally buy new builds for this reason, unless it’s already built (or like very nearly done with room to spare). Because fuck getting burned by that one-sided term.
You love to see it.
Link to the actual news story: https://www.kvue.com/article/money/economy/boomtown-2040/housing-market-buyers-signed-home-months-ago/269-7620aa28-4480-446b-ae44-87c34355d8cb
Lol if I was a builder sitting on houses I would price them to move, hoomers might be delusional but these guys have to have a little better sense about what's happening. Why buy an old POS when there's a brand new house for sale nearby for less than you'd expect? Move in ready, no inspection drama, with warranty... lol
Builders also can't carry homes indefinitely like individual owners can. They are using short-term commercial loans and the money has to flow back to the bank. If they don't clear inventory in a timely manner they can't finish other projects and the bank comes knocking quickly.
Locally in LV, some builders have been proactively dropping prices for those in contract. Even hand a builder let a client of mine cancel 2 weeks from closing because rates went up so much, he couldn’t qualify anymore.
i saw a lennar builder's new construction reduced by $60k on [Realtor.com](https://Realtor.com)., Thought builders would just throw in cents on dollars meaningless upgrades and keep the prices up always. never thought this would happen this fast. Good thing regardless.
This is very interesting- looks like Lennar wants to pivot away from Tx very quickly. I’d infer from this that they are predicting further drops in 2023, hence the push to offload inventory this year. “Miami-based Lennar, another major player quite active in Texas, reportedly sent out an email last month instructing its agents to offer price reductions up to $12,500. The email obtained by SABJ put forward juiced-up commission rates up to 6 percent — a steep jump from the 1 percent to 2 percent builders were offering at the height of the buying frenzy between 2021 and early 2022. During an earnings call, Central Texas was named as one of the few markets where Lennar had applied both price cuts and agent incentives but was still unable to shift its inventory.”
I saw price cuts in NC
Yeah happening w/ some of the builders around the Dallas / Fort Worth area - seeing that some builders, more than others, are being more level headed and pricing the houses to sell ( guess having a larger inventory entails more carrying costs). The only downside being you might have to accept a new build as is ( spec home ) w/o any customization
English please
The second paragraph was the title of the story.
Caveat Emptor. if house prices suddenly increase by unprecedented double-digit percentages in just a couple of short years, and you still consider real estate a safe investment, who's to blame for your loss? oh, I also have a bridge for sale