Submitted: Wednesday, December 26, 2007
Posted: Wednesday, December 26, 2007
Dave
Jacksonville
U.S.A.
In case you haven't noticed, HOUSING PRICES ARE DOWN! Your 'luxury home' is worth 30% less than a year and half ago. The builder needs to sell the remaining homes to recoup his investment. Since nobody is buying now, he has to reduce the price to gain interest.
I fail to see the ripoff... You're worried that because he lowered his prices that your property value will decrease? Too late. It's already depreciated. Don't blame the builder, blame the president. Property taxes are another thing, since they are based on the purchase price. You have a legitamate beef there.
Submitted: Wednesday, December 26, 2007
Posted: Wednesday, December 26, 2007
Jim
Phoenix
U.S.A.
I am sorry to hear about your situation. Of course this will have a negative impact on the value of your home. However, I also have to see the side of the builder. If the housing market in Illinois is anything like what we are experiencing in Arizona, then you might have bought the home when the economy was booming and the builder was able to charge more. Now with the housing market falling, the builder probably is willing to make less profit in order to unload the lots and spec houses that he owns.
The neighborhood in which I live is going through this right now. The model of home that we are in was selling for 500k-515k at the end of summer of 06. Now the builder is building the exact same model for 400k-415k. This hurts the people that bought several years ago. I know this does not help your situation, but as a business man I understand the builder's position. If I were the builder and was no longer able to sell the houses for what they were going for 1-3 years ago, I would lower the prices and get rid of the inventory. I hope that your situation works out for the best for you.