I don't think you'll get very far with it. It's maddening, but legal as far as I know. They've probably become nervous with the market dropping so fast this year and decided to apply an incentive to the latest sales program. Your house not yet being finished is not really relevant. Such incentives (or marketing tools) are used all the time, and unless you had been promised something which you haven't been able to get, you are probably just going to have to live with it - it is their right to implement that kind of thing.

Your only leverage is threatening to pull out of the deal. But if that makes sense depends on your earnest money / deposit and your contract.

If you are furious, I'd give the salesperson a hint that you are thinking about bailing because you aren't getting the incentives.

I can understand your dismay. You don't want to end up underwater when it comes time to sell because your house cost the same as everyone else but is less marketable. Not sure you'll get anywhere but the squeaky wheel and all that. Might as well try!

Personally I don't think SS appliances are that big a deal. SS itself is a bit of a fad so depending on when you sell it could be a non player, unless they are not just plain ss. Are the SS the new french door refrigerators? SS high end gas bizillion BTU burner? Then I might raise a fuss.
Granite - your right, people will expect it even though I can't stand it personally. Again though, depending on how long you stay it may be out of style by the time you sell. So unless you personally would really like to live with granite...... I think better cabinets would be a bigger deal. I like oak but to a lot of people it says "builders basic". Cabinets are harder and more expensive to change than countertop too. (I know you didn't mention cabs in your post but if I were going to ask for something I might switch it up)
Hardwood floors - now I think that's a big deal. You can cover them up with carpet and someone can uncover them later, but its a costly disruptive pain to put them in after the fact.
I might ask about getting all the upgrades and negotiate down to the hardwood if you can.

Is it even legal to pull out of a contract? I always assumed that once you are financed and the home is under construction, pulling out would mean the loss of your earnest money plus a trip to court, courtesy of the builder.

This is very frustrating to me. I understand that the chances of someone in my community who received this deal selling their home at the same time as me are probably slim, but I'm still grinding my teeth over the matter.

I'd be happy with them simply giving me the raw materials to install a hardwood floor myself. I don't expect them to match their current deal, but it would be nice if they would make some type of gesture and meet me somewhere in the middle.

Well, talk to them about the flooring at least - using the argument about devaluing your place (are there many others like you in that boat?) vs your next door neighbour's.

marys1000-

I agree with you on stainless steel appliances. My kitchen has 42" maple cabinets with a deep rouge finish. The counters are Corian with a black finish, speckled lightly with the same color as the cabinets. I chose top of the line black appliances because I felt that they matched much better than the SS. So the stainless steel incentive really didn't bother me.

The hardwood floors, however, THAT is a big punch in the stomach. I've never met one person who preferred carpet over wood. I really wanted a hardwood dining room, but I could not afford the extra cost. As a first time home owner I was trying very hard to remain in budget and avoid "option creep". It was very difficult to stop myself from being a kid in a candy store when I was in their design center. ("Adding this option only increases your monthly payment by $7!")

I'd post this over in the "building a home" forum. I think some people in the same situation have had luck negotiating with production builders after the fact. I think most builders would rather throw in the upgrades rather than have you walk. I wouldn't go in with guns blazing (at first). You might have a laywer take a good look at your contract too.

Newbuyer06, I do agree most people perfer hardwoods but I know several people who perfer carpet.

I would talk to the builder about getting some of these upgrades. The worst that could happen is that you won't get them.

Thank you for the suggestions, everyone. I'm on my way to the sales office now. Wish me luck!

Newbuyer06, what happened when you went to the sales office? Did you make any headway with them?

How is this situation any different than buying an item today and seeing it on sale next week? Some merchants price match retroactively and some do not.

I understand that it is the ultimate big ticket item, but being "furious" seems a bit much. Clearly you felt it was worth the purchase price when you bought it and I understand being a bit disappointed that you didn't get in on the deal, but furious?

In all areas of life timing is everything.

***update***

According to the sales person, the deal I received is still better than their current incentive. When I purchased in November the homes were slightly discounted and all my options and upgrades were 20% off. So after adding all of my upgrades the home came out to $165,700.

With the new deal the base home starts at $163,000, and they throw in hardwood floors (in the kitchen only), stainless steel appliances, and the granite counters. Customers THEN have to add in my upgrades and washer/dryer/central air at full cost. Incidentally, my upgrades and options were:

-crown molding in the kitchen
-42" cabinets with upgraded (level 2) trim
-central air
-brushed nickel lighting fixtures, door handles, etc.
-Upgraded kitchen sink and faucet (Blanco)
-upgraded carpet and padding
-garden bath
-added a loft and removed the 3rd bedroom

I'm having a difficult time verifying the numbers, but he said my upgrades and options came out to $36,000 in credits. The new incentive is $22,000 in credits. I still feel like something isn't quite right, but he seemed very honest during my initial purchase. He actually talked me out of a few options as "unnecessary", and for each of my 6 change orders he waived the contractual $100 fee. So I would like to trust his explaination, but I'm still a little uneasy.

In regards to cearbhaill's comments,

I feel the situation is quite different than buying an item today and seeing it on sale next week. First, most reputable retailers (amazon, best buy, etc) will refund the difference if the price is lowered within a certain timeframe.

Also, unlike other purchases, and home is an investment that will appreciate, and I will later need to sell against other competition in my community. To me this is significantly different than any other standard purchase.

Sorry...I disagree. The builder don't have to offer you anything. You purchased it at the offer price. You didn't wait. If you'd bought a home from a seller last year and now your house lost 10-20% of its value would you go after the seller?

Now take a different scenario. Here in our local market during peak (2002-2005) it wasn't unusual to have builders raise price by 10-20K or even more w/ each new phase to reflect the escalating market (so from 1st to last phase the difference could easily be 100K or more!) The builders didn't come after the people who already in contract for the price increase then why would you have the right to go after the builders for incentives that are offer or price decrease that simply reflect the change in market.

I definitely understand your perspective, but I still felt that I needed to try and negotiate further. There may be other issues I have to deal with, however, that may give me some leverage.

I stopped by the property today and peeked in the window. I discovered that the builder deleted the wrong wall. They deleted the wall that divided the family room from the dining room, instead of the wall that divided the living room from the family room. I went back and verified my contract, fearing I man have miscommunicated the optional wall I wanted taken out, but the paperwork reflects my request. I'm not sure what happened for this mistake to occur, but it is a serious error. The other walls are covered by windows, and the wall they deleted was the only one where my entertainment center could be located.

Good luck, newbuyer06. I hope they can somehow fix your missing wall problem... if not, tell them you will take hardwood floors throughout as compensation.

It is possible that they just mix up the incentives every so often to make them seem like something new and wonderful.

The wall OTOH is a problem. Let them know first thing in the morning so they can fix it.

"The wall OTOH is a problem. Let them know first thing in the morning so they can fix it."

Hope your documenting these changes in writing. I'd also have a friend along as a witness to prove the builder is doing what they promised.

"How is this situation any different than buying an item today and seeing it on sale next week? Some merchants price match retroactively and some do not."

A word to the wise. When building a house, make sure there is a claus in your contract that allows for the same upgrades the builder plans to offer to other buyers in the near future.

"A word to the wise. When building a house, make sure there is a claus in your contract that allows for the same upgrades the builder plans to offer to other buyers in the near future."

That usually is only possible for a specific period of time from the contract date. Once the builder has ordered the materials, there are no change orders allowed, especially things such as flooring, appliances, cabinets, countertops etc.
When building a home, most builders require up front payments for personalizing the home, such as specific higher end cabinets, particular granite counters or appliances etc.