After reading stories about people’s new homes having issues with construction costs or just not happening, looks like it’s my turn.
My wife and I had a nice new construction in a desirable area of town. Beautiful home, 4 bed 3 bath, 3 car garage, 9 foot ceilings, the works. $650,000 before options. We signed just 6 weeks ago and locked in the rate per contract.
Well, fast forward to today where I got an email late this evening that the builder said that after considering the lumber prices their going to either terminate contract or offer us to keep contract but at a higher price.
The thing is, they didn’t say what that price would be in the email. Says:
“If Buyer is amenable to an upward adjustment in the Purchase Price, in the weeks ahead, when Seller locks-in its key materials prices, Seller will notify Buyer of its proposed Purchase Price increase (“Seller’s Price Notice”). At that time, if Buyer finds the increase acceptable, Buyer and Seller will enter into an amendment to the Purchase Agreement. This amendment will set the new Purchase Price for the Property, and will commit Seller to moving forward with construction.”
The thing I don’t like about this is I have no guarantee their not just going to come back in a month and do the same thing.
To make matters worse, they haven’t even set the foundation yet so there’s at least 5-6 months more of construction.
Tomorrow I’m planning to go talk with the builder representative. Thoughts?