Sorry, this is off topic, but I thought I'd get a better response this way. Hi, NJ F-chatter that bought a second home (new construction) in '06 in Bradenton. Well, due to the tough market, the builder slashed the price of all remaining homes in this particular development (Lakewood Ranch) by $100K about a month ago. (They had already discounted the purchase price of our home by $25K earlier this year.) Does this set a precedent? They are NOT offering the $100K discount to any buyers already under contract, and have made it clear that they are standing firm on this. Looking for ayone who's had a similar experience, or may have some legal insight. Do I have a legal leg to stand on? Class action suit with other buyers in the same position? Including their sales manager, although I can't imagine they aren't going to take care of him. The rest of us are out of luck... Thanks for any and all advice. You can PM me as well.
Not an attorney. Not legal advice. Not advice at all.... How much is your deposit. Have you considered walking away? Anyone have any stats on how often they do, and what happens IF they decide to try to enforce the contract?
Just a commentary... I do find it interesting that when prices fall, consumers "expect" to be given the good or service at the new lower price regardless of the contract they signed. However if the situation were reversed, and prices rose and the merchant tried to impose the new higher price we would scream bloddy murder... Again, just a commentary... Something to think about. Back to the real world! Edit: I don't mean this to criticize. I'm not implying I am any different. I just find the double standard interesting. Any ethics experts here?
All of your answers should be in the contract that you signed........I will assume that your contract states a price, and there is not any contingencies for price changes.......If that's the case, you are most likely under contract to buy at a particular price. If you default, you will most likely loose your deposit, and risk being sued by the developer for any deficiency between your sales price and what they sell it for............... That is why there is a contract........It should protect you, in the event the properties go up in value, and protects the builder should the properties go down in value. BTW, if the builder is a small builder, most likely the builder is straining under the weight of the market pricing going down..........there's most likely not much to get...... However, there may be a play that if a lot of people start to walk away from the deposit, you may be able to reprice out of the builders desperation to get closings and get out......... Again, all of your answers should be contained in your contract. Without reading the contract, you're asking for opinions, not always fact.........
Have to agree with Simon. Most out of State buyers that came into Fl to buy "pre-construction" were buying for speculation. That in itself has actually crashed the market and now they try to weasle out of their contracts where they are now losing all the money they had made with their previous overinflated market. Overinflated by their own rediculous buying. I just love this market and the people now struggling. I buy real estate at 30c on the Dollar if anybody is interested in selling
It sounds like they might have colluded or something to bring down the values of your houses. Maybe there's a case because they artificially brought down the value of everyone's home that had already bought. Discounting tickets days before a concert or sporting event is just about never done.
If there is nothing in your contract about future price reductions, there is really nothing you can do. If you could, every developer today with any homes to sell, would declare bankruptcy.
Is this a preview into the imbalance of classic car prices? FWIW, Daytonas rose so very sharply and now, very few are trading hands.
Yes, you're on to something... But you're focussing on the wrong market segment.... You wanna' talk "bubble"? Let's talk about the Hemi Cuda that sold at Barrett-Jackson for $3m....
Should have perused through this... http://thehousingbubbleblog.com/ Make sure you read through the comments section as people share real time real estate info. California, Arizona, and Florida housing bubble stories/topics dominate. Do you think sheople research more for a car purchase or home purchase? The answer to that question is apalling!
As I mentioned, this was a long-term, not speculative purchase. My wife and I plan on living in a warmer climate by the time we're ready to retire in 15-20 years. I'm only investigating the matter because the builder has already once lowered the price (and extended that savings to us) after our contract was signed. I appreciate all the comments, but will probably get a lawyer's advice as well.
I am a real estate attorney here in Delray Beach and our firm has been advertising our services to help people who bought pre-construction new homes/condos get out of their contracts. Most of the contracts we have been reviewing don't comply with Florida and Federal laws and allow the buyer's an out. If you are interested - PM me. Capt. B
Capt, Are you willing to say what the prob is with most of the contracts? Doesn't apply to me... I'm just curious. Is one "flaw" in a contract enough to get the whole thing voided? Simon
If it was a long erm investment in the first place then what do you care. Apparenty you were happy with the price in 200X and saw it as a great investment then, why cry wolf now. I mean realistically we all knew the market would not hold. Would you have felt better if you had closed and then a week later the developer had reduced prices to adjust to today's market conditions? When you signed the dotted line you must have had some glimps that hat you agreed to pay that day would likely be worth less a few years later.
Yes, same thing. People with no clue buying at no reason and at any price, inflating the market and then crying when the market finally self corrects. We had it in 1988-1990 and we are on the verge f the same problem. Money from the stock market crash went to real estate in 2000, the money from real estate goes into the stock market and the automobilie collector market (probably art as well, I just don't follow that), and yes done they will bubble despite those that say a Daytona Coupe is worth $700,000. Agree also that the muscle cars that trade at $200,000 today are WAY overpriced. They are a dime a dozend and at the end of the day are crap no matter how you see it. Wealthy babyboomers reliving their past. Once that phase is over you can buy them again for $15,000 and that is $14,900 too much in my book.
I would place some blame on builders, because they know full well that they are selling to flippers but look the other way due to greed. Even when standards dictate against speculation by not selling within two years, everyone looks the other way, and its not enforced. The builder in this case (one of many in this community and the only one to resort to this strategy) is trying to pull out as quickly as possible to go fish in more lucrative waters, so I would say this is somewhat of an artificial correction.
I would say this is helping to devalue your new home - they need to decide what side of the fence they're on. If I can buy that same house for $125k less than what you're paying, I'd say they're deliberately screwing with the prices in the neighborhood and the potential equity in this home. I live near Lakewood Ranch, so I know what kind if panic is going on down here (I also sell RE - commercial, but my fiancee sells resi). Builders are abandoning projects down here, some are slashing prices and some are offering major incentives to realtors to get things sold. There was a lot of crooked behavior down here as well that's just coming to light, prison sentences getting handed out, etc. I'd get a lawyer - I know a few good real estate lawyers in Bradenton/Sarasota if you need one. Good luck. RMX
Len, With all due respect you sound like you are trying to blame everyone but yourself. You made a "long term investment", in a highly inflated market. Unless you were living under a rock, you must have been aware of this. To read your post, it's mostly the builder's and flipper's fault. And while this may be true (IMO large degree), you decided to get in shark infested water. Were you not aware there were speculators in the FL real estate market? The investment didn't turn out like you planned. This is unfortunate, but you have not (IMO) been "wronged". Simon
As Simon said I am not a lawyer. I was a corporate gypsy with 26 different moves and 14 or so houses. I has a similar thing happen to me. I did the math and it was cheaper to drop my deposit and walk away then stay with the higher price. Most states the only thing you forfeit is you deposit. This needs to be validated which I believe you can do on the internet. Usually even if the contract holds you to a penalty over and above the deposit the State law is over riding. I do not know how Florida works. If the anwers above give you flexibility. I would go talk to them nicely, the main guy not a clerk with a premise you have thought out. I mean layout the drama. Be prepared to walk if you can legally (as above) but think of areas that are good for him but do not impact you. You may negoiate more stuff in your house for a reduced price as an example. My opinion is he is having trouble selling homes so he will want to work with you. Good luck. Lee
The first is if there are changes to the property report (not minor) from the day you contracted on the poperty. You can than cancel the contract. By law you got the property report when you signed the contract to purchase. The second is if you hire an inspector, and you find problems with the construction of the unit. Also the developers in most contracts state that is you do not close, they get to keep you earnest money, but will not go after you for specific performance.
