New home delayed 1 year

[macbcomm]

I purchased a 2,500 square foot home that came with $5,000 in free upgrades and a closing date of August 2009.

I just received a letter saying that my closing date is delayed to July 2010 due to an issue with the municipality having to build a water tower.

Since the delay is over 240 days my contract is cancelled however I have the option to sign a new agreement with the adjusted closing date. I feel that I have some negotiation power to ask for additional free upgrades if the builder wants me to sign a new contract, my thinking is that I will ask for another $10,000 in free upgrades.

What do you think?

[Red_Army]

I purchased a 2,500 square foot home that came with $5,000 in free upgrades and a closing date of August 2009.

I just received a letter saying that my closing date is delayed to July 2010 due to an issue with the municipality having to build a water tower.

Since the delay is over 240 days my contract is cancelled however I have the option to sign a new agreement with the adjusted closing date. I feel that I have some negotiation power to ask for additional free upgrades if the builder wants me to sign a new contract, my thinking is that I will ask for another $10,000 in free upgrades.

What do you think?

im sure they wont give you anything, as i doubt they will care if you sign another contract, 10,000$ in upgrades for one house is alot especially when they already gave you 5K

if i were them i would say good riddance, and sell the house to another buyer
its not their fault that the closing date got moved

[alkaseltzer01]

The builder would love it if you back out. They will put your house back on the market and increase the price and make even more money.

[bririp]

We are in a similar situation. The builder won't care for your pain and suffering. My suggestion is to buy a resale home (even a brand new one from somebody flipping it). If the delay 1 year, you can almost bet it will be another 6 months after that.

BUILDERS SUCK!!!

[jonnyb]

im sure they wont give you anything, as i doubt they will care if you sign another contract, 10,000$ in upgrades for one house is alot especially when they already gave you 5K

if i were them i would say good riddance, and sell the house to another buyer
its not their fault that the closing date got moved


I take it you don't run a business because with an attitude like this it wouldn't last very long.

If your set on this house and can wait the extra time it wouldn't hurt to try and negotiate something in your favour.
I doubt they will say good riddance, although the market is strong its not what it used to be and one less house to worry about selling is more money in the builders pocket and less headache. Also, something such as a water tower is not a minor issue, I'm sure the builder new about this well before you signed your contract. The amount of planning and work that goes into a development is immense and there's no way that they would not have had some sort of idea as to the towns plans.

[Red_Army]

I take it you don't run a business because with an attitude like this it wouldn't last very long.

If your set on this house and can wait the extra time it wouldn't hurt to try and negotiate something in your favour.
I doubt they will say good riddance, although the market is strong its not what it used to be and one less house to worry about selling is more money in the builders pocket and less headache. Also, something such as a water tower is not a minor issue, I'm sure the builder new about this well before you signed your contract. The amount of planning and work that goes into a development is immense and there's no way that they would not have had some sort of idea as to the towns plans.

the funny thing is that is exactly how they run their business

as someone else said...they hope you back out because they will make more money....thats just how it is

[loudsubz]

just look at the price differences from buying brand new, to buy after its built. They usually go up allot more.

[Pete_Coach]

Didn't Tarion rules and Ontario consumer protection rules just change April 1st? I cannot remember but I thought the builders and developers were liable for many more penalties just for this type of scenario. If you cancel or withdraw on your own (or coerced to make it look like you took this action), I believe that it takes them off the hook.
I read it in the Homes section of my newspaper at the beginning of the month but did not pay that much attention because I am not in house buying situation. It is really worth getting the details. The Province touted this as a major consumer protection law.

[beerbaron105]

the builder will simply say "bye" and resell the lot to a new customer for a higher price

[1yellowdog]

You have to decide how badly you want to live in that house. You will be able to back out of the deal but will you be able to find anything else you like at that original price? I'm pretty sure the builder will be able to resell that house at this point so they aren't too worried about you walking away. It seems the Tarion policy for delayed closings are in the builders favour right now.

[mork]

The new contract is probably being offered to you out of legal obligation. If you say "give me X or no deal" they will certainly go for the "no deal". You'd be giving them the option of giving you something versus selling it to someone else for more money.

That said, $5k is probably not a lot compared to the purchase price so they might go for it..

[alkaseltzer01]

This is a great time to make some money if you can manage to hold onto the house. Let them delay it. Go and find yourself another house to live in. When this house closes, flip it. Don't let the builder make the extra $$$$.