I'm back from the IHB days and am going to buy a new construction...

[ThirtySomethingWEquity]

Hello again everyone, I've been lurking for a while and thought I'd jump into the fray to both contribute and get some questions answered. 


The situation:

After some back and fourth between different home communities and looking at resales in the Irvine/Lake Forest/Tustin Ranch area, my wife and I are ready to put down a deposit in the next phase (or two depending on direction the house faces) on a new detached condo development in Irvine.  We currently own a townhome in West Irvine (that I talked about quite a bit back in the day on IHB) and would sell before the move.


The question:

When talking to the sales associate we were told if we only qualify as 'contingent' in the pre-qual stage, we MUST not use a realtor for buying the new house AND we must use their program for selling our *current* townhome before they would accept our deposit.  Is that normal?  Do they seriously think I couldn't sell a townhome in WI within the six month timeframe it would take for them to build the house? wtf?

The (unrelated) trolling:

Why would anyone want to live in that development off of Irvine blvd across from the trailer park?  It just confuses me when I drive by cause I look one direction and it looks fancy with the lighting and olive trees, then the other side of Irvine Blvd. looks completely different with different landscaping and the mobile home entrance.  Weird.  :-\

 

[Burn That Belly]

x

 

[Rizdak]

To avoid contingency, could you qualify either using your townhome as a rental or by taking out a HELOC? For example, prequalify with a HELOC as your down and then selling your condo afterward.

 

[Jantoven]

The question:

When talking to the sales associate we were told if we only qualify as 'contingent' in the pre-qual stage, we MUST not use a realtor for buying the new house AND we must use their program for selling our *current* townhome before they would accept our deposit.  Is that normal?  Do they seriously think I couldn't sell a townhome in WE within the six month timeframe it would take for them to build the house? wtf?

Are the source of your funds for the downpayment coming from the sale of your WI home (or WE?  you said West Irvine but later said WE, not sure if that's the same or if you have two different places)?

I do think it's odd they are telling you that you can't use a realtor.  Seems like they are trying to deny a broker co-op. 

 

[Mety]

 
When talking to the sales associate we were told if we only qualify as 'contingent' in the pre-qual stage, we MUST not use a realtor for buying the new house AND we must use their program for selling our *current* townhome before they would accept our deposit.  Is that normal?  Do they seriously think I couldn't sell a townhome in WE within the six month timeframe it would take for them to build the house? wtf?

Seems like you already talked a lot with the sales people at Petaluma or wherever detached condo you were going for. In that case, there is no need to bring a realtor since there will not be a broker co-op refund for the sales people already are your realtor at this point. If you brought a realtor when you first walked in and signed under their name, then the situation would have been different.

What do you mean thier program? You mean thier bank and realtor to sell your home? I don't thank that's actually legal, but maybe you would need to explain a little more detail.

 

[ThirtySomethingWEquity]

Why don?t you start off with telling us where you?re buying and we?ll go from there.

Portola Springs, really want a detached place with a  downstairs bedroom so petaluma and vivo don't work for me.

To avoid contingency, could you qualify either using your townhome as a rental or by taking out a HELOC? For example, prequalify with a HELOC as your down and then selling your condo afterward.

That might work, thanks for the suggestions.

Are the source of your funds for the downpayment coming from the sale of your WI home (or WE?  you said West Irvine but later said WE, not sure if that's the same or if you have two different places)?

I have more than 20% of the purchase price liquid in my savings and another good chunk of change in my various stock investments.  (Tech has been good to me, though not so good I'm buying in the Reserves or Altair :-D).  So it's not the downpayment that's contingent on my selling the house.

What I'm not sure about is if I will qualify to handle the carrying costs of both mortgages + property taxes at the same.

Seems like you already talked a lot with the sales people at Petaluma or wherever detached condo you were going for. In that case, there is no need to bring a realtor since there will not be a broker co-op refund for the sales people already are your realtor at this point. If you brought a realtor when you first walked in and signed under their name, then the situation would have been different.

What do you mean thier program? You mean thier bank and realtor to sell your home? I don't thank that's actually legal, but maybe you would need to explain a little more detail.

The first time I visited the models I brought my realtor and he signed me in, so it's not that I got signed in without one.  I went without him to get an update and this is when they told me about how they 'don't take contingency, except if we use their realtor program'.

 

[usctrojancpa]

Did the builder's lender tell you that you could be non-contingent if you leased your current West Irvine condo?  I've had a handful of clients that could not be non-contingent unless they sold or leased their property before closing on their new home purchase.  Some builders are very easy to work with and other ones make it difficult if you are a contingent buyer.

 

[irvinehomeshopper]

You must be moved by the great design of Talise with a view

 

[irvinebullhousing]

Hey there, I am glad you still around. Hope you're watched and tune into some drama that unfold at GP

IHS, some help here. What do you make of the constant noise about Great Park that naysayers said not so Great.

 

[Mety]

Why don?t you start off with telling us where you?re buying and we?ll go from there.

Portola Springs, really want a detached place with a  downstairs bedroom so petaluma and vivo don't work for me.

To avoid contingency, could you qualify either using your townhome as a rental or by taking out a HELOC? For example, prequalify with a HELOC as your down and then selling your condo afterward.

That might work, thanks for the suggestions.

Are the source of your funds for the downpayment coming from the sale of your WI home (or WE?  you said West Irvine but later said WE, not sure if that's the same or if you have two different places)?

I have more than 20% of the purchase price liquid in my savings and another good chunk of change in my various stock investments.  (Tech has been good to me, though not so good I'm buying in the Reserves or Altair :-D).  So it's not the downpayment that's contingent on my selling the house.

What I'm not sure about is if I will qualify to handle the carrying costs of both mortgages + property taxes at the same.

Seems like you already talked a lot with the sales people at Petaluma or wherever detached condo you were going for. In that case, there is no need to bring a realtor since there will not be a broker co-op refund for the sales people already are your realtor at this point. If you brought a realtor when you first walked in and signed under their name, then the situation would have been different.

What do you mean thier program? You mean thier bank and realtor to sell your home? I don't thank that's actually legal, but maybe you would need to explain a little more detail.

The first time I visited the models I brought my realtor and he signed me in, so it's not that I got signed in without one.  I went without him to get an update and this is when they told me about how they 'don't take contingency, except if we use their realtor program'.

Gotcha. Yeah then it seems really unfair since you already brought your realtor. I mean, didn't you guys already sign the paper? The whole thing sounds a little bit shady. I would walk away unless you really want the home. They might constantly bring curve balls on the way to the end, like not closing on time and etc.
Rizdak's advice seems good if you wanna move forward.

 

[Mety]

You must be moved by the great design of Talise with a view

Designed by irvinehomeshopper?

 

[marmott]

I bought a SFH in PS last year being fully contingent on the sale of the condo we owned at the time. We were never told something like that.

We used USC as our agent for both transactions and got our max rebate as well.

This builder seems trouble, I would walk away.

 

[Mety]

Did you decide to walk away or stay?