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#1
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
We are currently in a situation where we will be moving from one state
to another for job purposes. We have looked into where we would like to live, and have found a plan/builder that we like. We talked to the sales agent and explained that we would need to sell our existing home in order to buy this one. He said that it would take about 6 months to build the home and that they would not take contingencies on selling our house first BUT that we could talk to their loan guy and "figure something out" (not something we want to do, as we could not afford two mortgages). There is no way we can wait 3 or 4 months to sell our own home (the market is really slowing down at this point, so that is what we are estimating) and then ANOTHER 6 monhts to get one built. It seems that with this market, the builder would be happy to get any buyers, even if they had contingencies, right??? Is the sales guy just feeding us BS or is it likely that the builder won't work with us on this? |
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#2
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
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#4
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
In article . com,
says... This home is just a typical tract home. It is going to be built one way or another. It seems like the builder would take his chances with an interested contingent buyer, than having no buyer at all. The market has not come to a complete hault in my area nor the area we are moving to, but things have definately slowed down enough that it is no longer a sellers market. I just have a hard time believing that everyone who buys a new house lives in an apartment for 3 -6 months. Most buyers are not first time home buyers and/or have already sold their own house. On the other hand, you can go ahead with the building knowing that possibly you might need to pay two mortgages for a while until your first house sells. A risk? Well sure, but what you're asking is that the builder take the risk, instead of you. Is that more fair? Well, you're right, it's not more fair if you're stuck vs. if they're stuck. So it all depends on what risks what homeowners and what buyers are willing to take, and sign on to. You can go to a different builder and see if they'll accept the contingency. Or not. But either way, you'll need to be either lucky or flexible. IF you sell quickly, your buyer may or may not accept any contingency of yours that they move in when your house is ready. Just the way it is. Banty Bob wrote: In article . com, says... We are currently in a situation where we will be moving from one state to another for job purposes. We have looked into where we would like to live, and have found a plan/builder that we like. We talked to the sales agent and explained that we would need to sell our existing home in order to buy this one. He said that it would take about 6 months to build the home and that they would not take contingencies on selling our house first BUT that we could talk to their loan guy and "figure something out" (not something we want to do, as we could not afford two mortgages). There is no way we can wait 3 or 4 months to sell our own home (the market is really slowing down at this point, so that is what we are estimating) and then ANOTHER 6 monhts to get one built. It seems that with this market, the builder would be happy to get any buyers, even if they had contingencies, right??? Is the sales guy just feeding us BS or is it likely that the builder won't work with us on this? Jacob, From the builder's point of view, he's building a spec house, even if he has a signed contract with you. If, for some reason, your present house hasn't sold by the time he finishes your house, he's stuck with a spec home. He can't force you to buy the house as you say you can't afford two mortgage payments, so all he would be able to get is your deposit. If things are as slow as you say they are in the new location, the last thing he wants is a spec home on his hands. This can also work in your favor. If the market is slowing, by the time you get your house sold, you might be able to get a better deal on the new one. There are plenty of apartment complexes that are willing to do short term leases for people building homes. That's what we did several years ago. HTH, Bob -- |
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#5
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
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#6
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
We decided to move to another state in 1990, just as the housing market
started going down hill. Took us over a year to sell. When we finally did, we rented an apartment for six months while we looked for a house. I am glad we did because we were not really familiar with the various neighborhoods and would have been unhappy if we had bought where we were first looking. It's prudent to rent an apartment and take your time picking out neighborhoods, schools, etc. as well as style of house. With the housing market becoming unstable, you can't be sure of selling your house right away and the prices are subject to change. |
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#7
Posted to misc.consumers.house
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
I dont agree that the builder would be taking a risk because
1. the house is going to be built one way or another. They will have to sell it to someone. That lot has been approved for that particular plan. It WILL be built and it will have to be sold. It would be customized with out carpet color, cabinet colors, etc.. but nothing big. Bottom line is that this house isnt a custom house. Its just a normal tract home that the builder would have to find a buyer for eventually. 2. If someone comes along without a contigency that wants the house the builder could let them buy it instead of us. Usually there is some sort of clause that gives a buyer 48 hours to become non contingent. Banty wrote: In article . com, says... This home is just a typical tract home. It is going to be built one way or another. It seems like the builder would take his chances with an interested contingent buyer, than having no buyer at all. The market has not come to a complete hault in my area nor the area we are moving to, but things have definately slowed down enough that it is no longer a sellers market. I just have a hard time believing that everyone who buys a new house lives in an apartment for 3 -6 months. Most buyers are not first time home buyers and/or have already sold their own house. On the other hand, you can go ahead with the building knowing that possibly you might need to pay two mortgages for a while until your first house sells. A risk? Well sure, but what you're asking is that the builder take the risk, instead of you. Is that more fair? Well, you're right, it's not more fair if you're stuck vs. if they're stuck. So it all depends on what risks what homeowners and what buyers are willing to take, and sign on to. You can go to a different builder and see if they'll accept the contingency. Or not. But either way, you'll need to be either lucky or flexible. IF you sell quickly, your buyer may or may not accept any contingency of yours that they move in when your house is ready. Just the way it is. Banty Bob wrote: In article . com, says... We are currently in a situation where we will be moving from one state to another for job purposes. We have looked into where we would like to live, and have found a plan/builder that we like. We talked to the sales agent and explained that we would need to sell our existing home in order to buy this one. He said that it would take about 6 months to build the home and that they would not take contingencies on selling our house first BUT that we could talk to their loan guy and "figure something out" (not something we want to do, as we could not afford two mortgages). There is no way we can wait 3 or 4 months to sell our own home (the market is really slowing down at this point, so that is what we are estimating) and then ANOTHER 6 monhts to get one built. It seems that with this market, the builder would be happy to get any buyers, even if they had contingencies, right??? Is the sales guy just feeding us BS or is it likely that the builder won't work with us on this? Jacob, From the builder's point of view, he's building a spec house, even if he has a signed contract with you. If, for some reason, your present house hasn't sold by the time he finishes your house, he's stuck with a spec home. He can't force you to buy the house as you say you can't afford two mortgage payments, so all he would be able to get is your deposit. If things are as slow as you say they are in the new location, the last thing he wants is a spec home on his hands. This can also work in your favor. If the market is slowing, by the time you get your house sold, you might be able to get a better deal on the new one. There are plenty of apartment complexes that are willing to do short term leases for people building homes. That's what we did several years ago. HTH, Bob -- |
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#8
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
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#9
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
wrote This home is just a typical tract home. It is going to be built one way or another. It seems like the builder would take his chances with an interested contingent buyer, than having no buyer at all. The market has not come to a complete hault in my area nor the area we are moving to, but things have definately slowed down enough that it is no longer a sellers market. Why would a builder waste their time, and money (their project and land is financed) with someone that may or may not sell their home? I'm sorry, but your logic on this is way one sided, in your favor. There are too many what "ifs". It really absurd on your part, to want a builder to hold a home for you, and you're not willing to make a commitment to buy, other than you may or may not sell your home. It's a buyers market right now, and a lot of people are chosing to buy new instead of preowned. |
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#10
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Do builders typically reject buyers w/ contingencies on sellingtheir exisiting home?
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#11
Posted to misc.consumers.house
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
wrote: I dont agree that the builder would be taking a risk because 1. the house is going to be built one way or another. They will have to sell it to someone. That lot has been approved for that particular plan. It WILL be built and it will have to be sold. It would be customized with out carpet color, cabinet colors, etc.. but nothing big. Bottom line is that this house isnt a custom house. Its just a normal tract home that the builder would have to find a buyer for eventually. 2. If someone comes along without a contigency that wants the house the builder could let them buy it instead of us. Usually there is some sort of clause that gives a buyer 48 hours to become non contingent. And would you sign a contract where the builder can just sell it to anyone at any point that comes along offering to buy the place without a contingency? If 3 months into the thing the builder did sell it to someone else, where would that leave you? Also, while you think customizing it with your colors, cabinets, etc., is "nothing big", it does have a real impact on the builder. A house where a prospective buyer can make those choices is going to be more marketable and likely command a higher price than one where the buyer has no choices. What would you think of the same house if someone had already made those choices vs the identical one down the street where you could still have it your way? You may find a builder willing to do a contigency contract. But I don't think this builder is being unreasonable in his approach. Banty wrote: In article . com, says... This home is just a typical tract home. It is going to be built one way or another. It seems like the builder would take his chances with an interested contingent buyer, than having no buyer at all. The market has not come to a complete hault in my area nor the area we are moving to, but things have definately slowed down enough that it is no longer a sellers market. I just have a hard time believing that everyone who buys a new house lives in an apartment for 3 -6 months. Most buyers are not first time home buyers and/or have already sold their own house. On the other hand, you can go ahead with the building knowing that possibly you might need to pay two mortgages for a while until your first house sells. A risk? Well sure, but what you're asking is that the builder take the risk, instead of you. Is that more fair? Well, you're right, it's not more fair if you're stuck vs. if they're stuck. So it all depends on what risks what homeowners and what buyers are willing to take, and sign on to. You can go to a different builder and see if they'll accept the contingency. Or not. But either way, you'll need to be either lucky or flexible. IF you sell quickly, your buyer may or may not accept any contingency of yours that they move in when your house is ready. Just the way it is. Banty Bob wrote: In article . com, says... We are currently in a situation where we will be moving from one state to another for job purposes. We have looked into where we would like to live, and have found a plan/builder that we like. We talked to the sales agent and explained that we would need to sell our existing home in order to buy this one. He said that it would take about 6 months to build the home and that they would not take contingencies on selling our house first BUT that we could talk to their loan guy and "figure something out" (not something we want to do, as we could not afford two mortgages). There is no way we can wait 3 or 4 months to sell our own home (the market is really slowing down at this point, so that is what we are estimating) and then ANOTHER 6 monhts to get one built. It seems that with this market, the builder would be happy to get any buyers, even if they had contingencies, right??? Is the sales guy just feeding us BS or is it likely that the builder won't work with us on this? Jacob, From the builder's point of view, he's building a spec house, even if he has a signed contract with you. If, for some reason, your present house hasn't sold by the time he finishes your house, he's stuck with a spec home. He can't force you to buy the house as you say you can't afford two mortgage payments, so all he would be able to get is your deposit. If things are as slow as you say they are in the new location, the last thing he wants is a spec home on his hands. This can also work in your favor. If the market is slowing, by the time you get your house sold, you might be able to get a better deal on the new one. There are plenty of apartment complexes that are willing to do short term leases for people building homes. That's what we did several years ago. HTH, Bob -- |
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#12
Posted to misc.consumers.house
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
There is just too much which can go wrong with a house sale or purchase.
Actually if a house for sale ever gets to closing, I feel it is a small miracle. It is very likely that there will be problems selling your existing home and getting to the point of closing. I would not make any commitments elsewhere until you have the check in your hand. If I were to sell my house, I would want a couple of weeks after closing to move my stuff out if this was possible. Then I would move most of my stuff into storage and get a month to month apartment. THEN I would look for a new house. If moving into an entirely new city that I was not familiar with, I would probably want to live in an apartment there for 6 months or a year until I learned which were good/bad areas. Then look for homes in the good areas. Note the house across the street from me took one year to sell/close. But a house down the street sold in one month. So no telling in advance when exactly a house will close. If you can afford to pay two mortgages at the same time, then that is a different story.... |
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#13
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
In article ,
says... In article .com, says... I dont agree that the builder would be taking a risk because 1. the house is going to be built one way or another. They will have to sell it to someone. That lot has been approved for that particular plan. It WILL be built and it will have to be sold. It would be customized with out carpet color, cabinet colors, etc.. but nothing big. Bottom line is that this house isnt a custom house. Its just a normal tract home that the builder would have to find a buyer for eventually. 2. If someone comes along without a contigency that wants the house the builder could let them buy it instead of us. Usually there is some sort of clause that gives a buyer 48 hours to become non contingent. The builder is taking a risk because he doesn't know when the house will be sold, should he build it as a spec, which is what you are asking him to do. He's also building a style that the next buyer may not want. OTOH, we were looking this weekend at houses in another state for a possible retirement (soon). The one builder we talked to was quite willing to build "on spec" if our house was on the market. -- Keith |
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#14
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
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#15
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
On 23 Jul 2006 10:01:08 -0700, someone wrote:
It seems that with this market, the builder would be happy to get any buyers, even if they had contingencies, right??? Is the sales guy just feeding us BS... So call his bluff and see if you are right. Tell him you have to have that contingency or you won't sign. If you are right, they will back down, if you are wrong they will show you the door. (The guy has never seen your existing house. He doesn't know if it is priced fairly. Why should HE depend on YOU selling it?) Reply to NG only - this e.mail address goes to a kill file. |
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#16
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
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#17
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
I think the sales guy is just doing a sales job on you. Really, there must
be a load of other houses that would be just fine. Tell him he doesn't get a contract unless you get your contingency. If he agrees, you win. If he doesn't, you'll take your chances. Anyways, lets say you sign with him and it really takes him 9 months to finish the house. You have to plan for that also. S wrote in message ups.com... We are currently in a situation where we will be moving from one state to another for job purposes. We have looked into where we would like to live, and have found a plan/builder that we like. We talked to the sales agent and explained that we would need to sell our existing home in order to buy this one. He said that it would take about 6 months to build the home and that they would not take contingencies on selling our house first BUT that we could talk to their loan guy and "figure something out" (not something we want to do, as we could not afford two mortgages). There is no way we can wait 3 or 4 months to sell our own home (the market is really slowing down at this point, so that is what we are estimating) and then ANOTHER 6 monhts to get one built. It seems that with this market, the builder would be happy to get any buyers, even if they had contingencies, right??? Is the sales guy just feeding us BS or is it likely that the builder won't work with us on this? |
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#18
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
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#19
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Do builders typically reject buyers w/ contingencies on selling their exisiting home?
On 25 Jul 2006 15:25:19 -0700, someone wrote:
Well, lets say the builder has 10 homes he has to sell. I want to buy 1. If he has 10 non contingent buyers, then he could easily say "see ya" to me right? Does he have 10 homes unsold, what is his normal rate of sales, has he been getting non-contingent contracts. You might find a more willing taker on a homeowner's sale of their existing home. Or you could offer to sweeten the deal for the builder a little by offering a non-refundable fee or deposit in exchange for the contingency. That would cover any custom PITA that you want that he miight be afraid you will not ultimately buy, and pay him for his risk that you might back out and he would have to cary it until he found another buyer. In general in life, it is hard to both have it your way, AND have no risk, AND have it not cost you any extra, so if you want him to take on this risk, pay for it. What you are trying to hedge against is the disaster of not selling your house. Hedges cost money (safety costs money) so pay a few thousand to get the safety valve. OR, call his bluff! Reply to NG only - this e.mail address goes to a kill file. |
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