Price drop after signing purchase contract

R

reshma86

New member
If the builder drops the prices of similar new homes in the community, after signing a purchase contract, do we have any say or chance to lower the home price if the purchase contract has already been signed? Your inputs are appreciated!
 
Just so we're clear, are we talking about base pricing dropping?  Overall pricing may or may not include pre-plot options, elevation premium, lot premium etc.
 
HomeShopper said:
If the builder drops the prices of similar new homes in the community, after signing a purchase contract, do we have any say or chance to lower the home price if the purchase contract has already been signed? Your inputs are appreciated!
Click to expand...

Did you read your purchase agreement? It specifically accounts for this possibility and provides you no recourse should the builder drop prices subsequently.
 
Have you talked to the builder yet? We had a similar situation but we talked to builder who agreed to drop the price.  If their sales are slow (which is likely the case here), they will be more likely to listen to you.
 
Also The buyercan try to negotiate some design center upgrades. 

And if the difference in price drops is far greater than the deposite, buyer can just back out, forfeit the deposite for the contracted home and sign up for another lower priced home. 

Actually some builder might let buyer to swap home without any penalty. 

 
If it is within 3 days, you can cancel that new home purchase agreement with no penalty. 
 
It is the overall pricing and other homes with better pre-plot options (corner lot and better elevation) are priced exactly the same as ours. Also the builder website now reflects a changed lower base price range for the plan in general, than what was there previously.

LongIrvine said:
Just so we're clear, are we talking about base pricing dropping?  Overall pricing may or may not include pre-plot options, elevation premium, lot premium etc.
Click to expand...
 
HomeShopper said:
It is the overall pricing and other homes with better pre-plot options (corner lot and better elevation) are priced exactly the same as ours. Also the builder website now reflects a changed lower base price range for the plan in general, than what was there previously.

LongIrvine said:
Just so we're clear, are we talking about base pricing dropping?  Overall pricing may or may not include pre-plot options, elevation premium, lot premium etc.
Click to expand...
Click to expand...

Is this Capella?  Sounds like it.  Pre-plot with higher elevation on the so called "view" side.
 
HomeShopper said:
It is the overall pricing and other homes with better pre-plot options (corner lot and better elevation) are priced exactly the same as ours. Also the builder website now reflects a changed lower base price range for the plan in general, than what was there previously.

LongIrvine said:
Just so we're clear, are we talking about base pricing dropping?  Overall pricing may or may not include pre-plot options, elevation premium, lot premium etc.
Click to expand...
Click to expand...

I think for the "standing inventory" homes, not much you can do about it. This happens in a lot of neighborhoods. You may be able to make a case if they are slashing prices across the board in future phases.  How much are we talking here? 10k? 20k? More? 
 
HomeShopper said:
If the builder drops the prices of similar new homes in the community, after signing a purchase contract, do we have any say or chance to lower the home price if the purchase contract has already been signed? Your inputs are appreciated!
Click to expand...

Who is the builder? Certain builders are more flexible than others.

 
The vagueness of the information provided prevents responses from being very valuable.  In general, once you agree to purchase at a contracted price, the builder has no legal or financial obligation to "price match" other lots.  Some builders will agree to it to keep their buyers happy, but it's rare.
 
Ok, got it. 
Yeah, if it's after COE, nothing will change.
Before COE, there may still be some hope.
 
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