On Saturday, May 8, 2021 at 10:29:38 AM UTC-4, Leon wrote:
On 5/7/2021 10:26 PM, Clare Snyder wrote:
On Fri, 7 May 2021 13:51:57 -0500, Leon lcb11211@swbelldotnet wrote:

On 5/6/2021 12:12 PM, DerbyDad03 wrote:
On Thursday, May 6, 2021 at 10:37:28 AM UTC-4, Leon wrote:
On 5/5/2021 10:03 AM, DerbyDad03 wrote:
On Wednesday, May 5, 2021 at 10:45:46 AM UTC-4, Leon wrote:
On 5/5/2021 8:57 AM, Scott Lurndal wrote:
Leon lcb11211@swbelldotnet writes:
On 5/4/2021 9:48 PM, DerbyDad03 wrote:
On Tuesday, May 4, 2021 at 6:30:47 PM UTC-4, Leon wrote:
On 5/4/2021 10:09 AM, Scott Lurndal wrote:
Leon lcb11211@swbelldotnet writes:


We were in contract to build a new home in September of last year. We
locked in a price of $365K for a 3800 sq ft home. We would have been
closing right about now on the home and would have gained $70K equity.
The builder canceled all contracts on "to be built homes", claiming
material shortages.

The builder cancelled all contracts to protect his ass as he had NO
IDEA what his costs would be - and at this point he still really does
not know what his costs will be next month
Well that is the excuse that he used but he was willing to sell me the
same home 3 weeks later for and additional $16K.
And the builder was Century Homes. A relative large builder that I am
certain had locked in material pricing in advance.

Maybe he had locked in material pricing in advance, just like you
locked in price on a new built in adavnce.

See below...

That neighborhood is now about 2 years old, just over 18 months old
when we went into contract. There are double to triple the amount of
homes in that neighborhood in the last 6 months as the first 18 months.

So we were going to be buying a home that is now selling for $70K more
than what we went into contract for. Obviously there is no materials
shortages. And it appears obvious that the builder wanted to make and
sell the home for $70K extra himself.

SNIPP


A 25% increase in materials cost should not result in a 25% price
increase under normal circumstances. But these are unusual times where
the new to the game are willing to pay the price and unfortunately
likely to pay the consequence when home values go back to what they
should be.
The material cost increase is one heck of a lot more than 25%
Not in this circumstance. Again, as I stated above. Large builders
agree to buy "X" amount of materials from a supplier at a locked in
price. A very common practice by suppliers to guarantee inventory turn
over and to get discounts them selves from the mill.

I know I said that I was moving on, but sometimes I just can't help
myself. ;-)

Your builder gave you a price and then cancelled, claiming
material shortages. Whether you believe that excuse or not,
the bottom line was that your contract was cancelled.

Would you be willing to the entertain the possibility that as
you work your way up the supply chain the same thing was
going on?

Builder/Buyer contracts were cancelled. That's a fact you
can't dispute because it happened to you.

Perhaps Mill/Builder contracts were also cancelled. You are
certain that Century Homes locked in a price in advance but
do you know - for certain - that that contract was honored?
Do you know - for certain - that Century Homes was actually
able to obtain the material at the locked in price?

Perhaps Logger/Mill contacts were cancelled. The Mill could
be telling the Builder the same thing that the Builder told the
Buyer (you): "Sorry, the loggers have raised our prices and we
can't honor your contract because we just can't supply the
material at that price and stay in business."

Perhaps the Logger is telling the Mill "Sorry we can't supply
the logs at that price and stay in business. Sue me if you want,
one way or the other I'm going to lose money so I'll take my
chances in court."

(Feel free to shorten the supply chain and assume that the
Logger and Mill s the same company. That won't really change
anything.)