deallover said:jonsback said:Mithrin said:
Your other potential leverage in this situation is the appraisal and financing. If you haven't gotten financing yet, and the appraisal comes in at a lower price, you might regain some bargaining power. Have your lawyer check the contract for what happens to your 17K if the appraisal comes in lower than the sale price. If it favors you, you might get the builder to agree to adjust the sale price to match the appraisal.

We just purchased at the end of July 2008 and the appraisal came in under the sales price, so Richmond adjusted the price to make the sale. Your saving grace will be the appraisal as the lender will not allow the higher sales price unless the buyer is willing to pay it.

So I think it is a good idea to get my home appraised closer to the closing time.

Builder can always argue that appraiser has worked the numbers in my favor and their appraiser might appraise it even higher.
How to counter that?

You don't need to argue it as it directly correlates to the lender lending you the money.

deallover said:xarien said:Do you have any contingencies left on the house or have they all been removed? Having an active financing or appraisal contingency will swing the favor largely to your corner as you can take your EMD back.

Builder did not allow any contingency but I will check the contract tonight.
That is a very good point.


Also, I will get the appraisal done. If they use current comparables, my house would definitely come lower than the current price.

One thing to remember is that the builder needs you more than you need the builder. They may have a note out on the anticipated closing of your house that's providing financing for them. If you back out, that note might come due.

You really have all kinds of leverage, but the only way to exercise that leverage is to threaten to walk away...unless you found a contingency.

Are you financing through the builder, or through a bank? If the latter, you can use the bank as leverage.

xarien said:deallover said:jonsback said:Mithrin said:
Your other potential leverage in this situation is the appraisal and financing. If you haven't gotten financing yet, and the appraisal comes in at a lower price, you might regain some bargaining power. Have your lawyer check the contract for what happens to your 17K if the appraisal comes in lower than the sale price. If it favors you, you might get the builder to agree to adjust the sale price to match the appraisal.

We just purchased at the end of July 2008 and the appraisal came in under the sales price, so Richmond adjusted the price to make the sale. Your saving grace will be the appraisal as the lender will not allow the higher sales price unless the buyer is willing to pay it.

So I think it is a good idea to get my home appraised closer to the closing time.

Builder can always argue that appraiser has worked the numbers in my favor and their appraiser might appraise it even higher.
How to counter that?

You don't need to argue it as it directly correlates to the lender lending you the money.

OP stated that there were no contingencies in the contract. The only way not being able to get a loan would factor in is: #1 There is a finance contingency or #2 The builder will deal to get the deal done instead of just taking the deposit and selling the house to someone else.