Follow Up - What do you think of this deal...

wonka27November 17, 2008

A few days back I posted about selling a home and buying new construction if the loss on our home would be a wash with current deals offered by builders.

On Saturday my wife and I visited a community of singles and a few twins. We actually liked a spec twin (2200 sq ft, 3 bed, 2.5 bath, and a fairly large upstairs loft that can be, or converted one day into a 4th bedroom) they had, and may move forward. Here is the deal...

Originally listed at $309. Now reduced to $289 last month.

$15K closing credit for use in any way (reduce price, closing costs (any lender), etc.

Approx $2K Title Insurance paid by builder in addition to closing credit.

$18K in upgrades (granite, upgrade cabs, tile backsplash, deck, SS appliances, etc., etc.) for 5K

This will more than cover what I would lose on my house (if we can sell it). And that is what she "threw" at us...no negotiating yet. I don't know if they would move further, but I will sure try.

What do you think. My cousin lives in a home constructed by this company that is 12 yrs old...and she is very happy with it.

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berniek

Sounds similar to something we did this year.
We probably "lost" $5-7k on the sale, but made up almost $40k in price reduction/incentives and upgrades.
Just make sure the purchase is contingent on your sale, unless you have enough funds to pay both for an extended period.
Best of luck!

    Bookmark   November 17, 2008 at 11:48AM
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wonka27

Berniek -

I forgot to mention the sale being contingent on our home being sold. She said the builder may want to visit our home to make sure our pricing and marking plan is appropriate. They do want to know how far we will drop in price and when we will do this, so hopefully our plan will be adequate once we determine pricing...

    Bookmark   November 17, 2008 at 11:52AM
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mariend

I would have a RE lawyer review all docs. Also if you have never lived in a twin--or duplex, be aware that the people do change and you cannot control who lives there or who they will sell to. I live in one now, but my DD and family live next to us. Other than that, personally I would not live in one. Why would the builder need to see your home? Is he/she a Realtor? Why are they interested in how low you will go? Couple of red flags for you and the lawyer to discuss. As to the 18K upgrades, check out to see if they are really worth this or are they are they a cheaper upgrades, with the price inflated. Just be aware, the people are moving away from the granite tops as there seems to be some health issues.

    Bookmark   November 17, 2008 at 5:40PM
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lyfia

As mariend mentioned, I wouldn't want to live in a Twin. You have to be able to agree on changes or what if they flood their upstairs and it runs into the wall and comes in on your side? What about roof maintenance, exterior painting??

Also the price is just lowered to match with what the market can bear. Any upgrades really are their upgrade prices and you may be able to do the same upgrade for less. Upgrades is usually where mass-builders make their money.

    Bookmark   November 17, 2008 at 6:33PM
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