Advice on buying new home from builder?
8 years ago
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Comments (8)
- 8 years ago
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Buying a custom built home from investor rather than builder?
Comments (19)This is one of those deals where the seller (investor) is obviously so far out of his depth that he is tragically exposed and you are probably somewhat insulated from problems. The appraisal clause alone will somewhat insulate you from problems while exposing him to massive losses or price reductions. A real estate attorney will enjoy making this deal work in your favor. However, I would walk away from the deal, the whole things seems a house of cards to me, and until he has actually completed projects and closed on houses, this whole thing could come crashing down around him. It is entirely possible that these houses are not going to appraise, and he simply may not be able to absorb those losses. Then you have mechanic's liens and all that jazz to deal with if you go through with the purchase....See MoreBuying new house but don’t love the exterior- advice?
Comments (87)That is good news! Hope you got a better deal because paint alone for that house is going to be $$$$ as I'm sure you know, to say nothing of the labor, scaffolding, caulking, etc., etc. Huge job. I figure it will take a crew at least 2 weeks and possibly longer to do that job, depending on how many people they put on the job. I would ask for a "plan" because if they separate it into "sections" and they have more than one painter, it will more likely ensure an even application/look at the end. Each painter has his/her own "touch" on amount of paint applied and overlapping to ensure coverage, etc. Good luck. Make sure you get test panels made so you can move them around in the various light conditions during morning, afternoon and evening. Also you a flat finish with very good quality paint. It will last a lot longer....See MoreBuilder of New Home Wants a CMA of Current Home? Is this a common ask?
Comments (8)Buying a home contigent on selling a home is essentially a contract saying “I might buy your home, if all the stars line up.” Contingencies are an OUT to a contract, and home sell contingencies are the worst kind because the seller has little control over the domino effect the buyer has placed them in, yet the seller will be the one who bears the burden of the deal falling apart. This is magnified with a new home build because builders always have sunk costs even before the first shovel hits the ground, permit fees, soil tests, engineering fees, staff time, etc. Thousands are at risk, I am surprised a CMA is all that was requested. Additional requests to play the contingency game could be non-refundable deposit (skin in the game on your part), approval for your marketing plan, list price, and price changes as needed to get the home sold, etc. Never met a home seller that didn’t proclaim for certain their home would sell right away at the price they want, yet the number of listings that don’t sell and expire is pretty high. As for the argument that the builder can just sell the new home if you can’t perform, it will likely be at best sold for cost, or even a loss. If you could buy a $500,000 new home where someone else got to pick everything, or a $500,000 home where you get to pick everything, which one would you choose? Your builder sounds naive if all they are asking for is a CMA....See MoreNew house and builder kick backs from vendors
Comments (84)OP - to be fair to the pros here, your explanations of your contract, and of your builder's behavior, are very unclear, at least to this non-pro homeowner. I have great difficulty myself following statements such as: "the builder received some $$ as % of what I purchased. Lets say I paid $95 on a retail price of $100, then builder will get 10% of $95 or something like that. In some cases, I pay retail price but builder gets a significantly lower price. For ex, I pay $100, and he “charges” $100 but actually the cost is $70. " Are you saying, first, that you are personally paying the vendor directly for these items, and that the vendor is then paying the builder 10% of the value of your purchase? That would be a kickback, but is that what's really happening? Or are you saying that the builder is buying the items and charging you more than the invoice price for them? Has the builder actually provided you with the invoices from the vendor? If not, and assuming you have a cost-plus contract, I'd certainly insist on seeing the invoices. Presumably, if the builder is adding a mark up, it's covered under the terms of your contract. Obviously, the builder's time has value, and if he has to order, collect and store the goods, it would seem reasonable to me that he would charge you more than the base invoice price for the service he's rendering. But the contract is king, so what does it actually say?...See MoreRelated Professionals
Middle River Architects & Building Designers · Parkway Architects & Building Designers · Ashburn General Contractors · Auburn General Contractors · Clarksville General Contractors · Coos Bay General Contractors · Elyria General Contractors · Harvey General Contractors · Kilgore General Contractors · North Highlands General Contractors · Universal City General Contractors · Williamstown General Contractors · Norwalk Home Stagers · The Hammocks Home Stagers · Rosaryville Interior Designers & Decorators- 8 years ago
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