Condo Contract Question - Defaulting?

[jammies]

Originally Posted by ken0042

Yes, but I think the point Photon is making is that until you buy, take possesion, and then re-sell; you have not lost any money.

As an aside, this reminds of my buddy who has moved overseas and refuses to sell his house here at current valuations because he would "lose" money if he did so. He bought it about 5 years ago at around $330 000 and it was valued around $550 000 a year ago; now he has it listed for $499 000 and he won't take less than $490 000 because he thinks it's worth is half a million or more regardless of market conditions.

Try to explain to him that he isn't losing anything but imaginary money that never existed by selling at a more reasonable 460-470 000 is simply impossible. (And he has had it listed over 3 months and had exactly zero offers anywhere near what he wants, and maybe 2-3 offers in total). He's not a dumb guy, but he just doesn't get it - in his mind, he's already being reasonable by taking 50 grand off of what HE thinks it is worth, and asking for more of a discount is being greedy.

[Potty]

Originally Posted by ikaris

Perhaps my view is jaded, but I think it's despicable that a developer would even try that. As for price renegotiation, I've already been able to do that on a condo that I've purchased.

So it's despicable for a developer to try to renegotiate a deal if the value of a condo goes up, but you think you should have the right to go back with your hand out because the market went down?

This doesn't seem hypocritical to you?

[ikaris]

Originally Posted by Potty

So it's despicable for a developer to try to renegotiate a deal if the value of a condo goes up, but you think you should have the right to go back with your hand out because the market went down?

This doesn't seem hypocritical to you?

As it pertains to me, yes

[Nancy]

Originally Posted by fotze

I know certain builders are lowering the agreed upon price to avoid people walking.

I've heard this rumour elsewhere and I'd bet that is not the whole story. I know that a few builders were offering "best price" guarantees in their contracts as a sales promotion. I'd bet you that's the only reason the builder gave the price cut. (Because they had since lowered the price on the units.) Or there was some other extenuating circumstance like that.

[onetwo_threefour]

Just to expand on what Photon was saying. It is true that the half-dozen or so of those clauses that I saw were worded as cost of building adjustments rather than 'profit adjustments' but it is also true that at least one builder tried to increase prices even without a price adjustment clause on the basis that they wouldn't be able to finish and would walk away from the project if people refused to pay more. That was dirty pool and we told the builder we would sue them for it and they backed off. I think it us also dirty pool for the buyer to suddenly go back and request a price adjustment based on hypothetical losses and have told a couple of clients that as well. Everybody takes risks in the marketplace and everybody is responsible for the risks they choose to take.