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This is a long shot, but has anyone had any luck AFTER purchase agreement on going back to re-negotiate their deal? The home I bought is now $2000 MORE expensive, however they are offering either $10,000 off purchase price(this would equate to $800 less than I paid) OR $15000 in free upgrades.

I realize that the ball is 100% in their court, but anything is possible. They have my deposit and 30% of the upgrades I chose. Would the threat of walking away from a deposit be realistic? Is there any other recourse I have?

hi,

I and my friends had been debating on the same issue for a few days now.

They have dropped prices on the detached.

Reg, yes, myself (representing a friend) and 2 more owners of the detached houses went to the builder just 2 days ago. We asked them about the price drop on our houses, as they are offering the same houses now for a little less money. The rep pretty much said sorry nothing we can do. We asked them to give us atleast 15 k of free upgrades, again the refused to do anything. They are just not willing to help out in anyway.

So we came back with nothing. While at their office we did say that we are not going to close our houses, and they said that, we will not get our 20k of deposit back.

Considering the amount that they have already dropped on these houses, and the state of economy, i think it will take them a few years to even out their investment (leave aside making any profit on it). And if they have to sell it right away, then they are competing against the same house that was built for much less then what they paid. Hence they are loosing about 20k right away, plus all the other fees (required for seling) they will end up loosing around 40 k.

So they are a little confused here. Like i said, selling is not an option because they are competing against same houses that were 20k cheaper, and then considering today's market, who knows it might take 6 months to sell the house. They certainly can not pay mortgage for the house they are living in plus this new one that will be closing soon.

They were thinking it is better to let go off 20k rather than 40 k. (believe me those people are not rich at all. Basically some investers whose calculation was not right). If they let the house go along with their 20k, can the builder come after them and sue them or anything like that? .

In addition if anyone is in a similar situation, what are you doing ?

Thank you

If you walk away from a signed contract you can loose more then the deposit. Mattamy is within their rights to take you to court and extract the total sale price of the home from you... or the amount that they loose by selling the house at a discount to someone else.

When the market was going up Mattamy couldn't go to the buyers at close and make them pay more based on the fact the market was going up... so you can't do the same to them when the market is going down.

Both sides have signed a binding contract, and have to live up to it.

Marc

Kind of confused here with your question Your friends bought a new house from mattamy but they want to drop the 20k deposit becuase they aren't getting 15k in upgrades? If they don't want to sell it then keep it b/c won't they lose more money b/c they have to shed out another 20K for another deposit?? To walk away from a house b/c your not getting upgrades that cost less than your deposit is kind of silly! Thats my honest opnion..if they wanted to flip it thats a different story!

Caveat Emptor.

Can someone confirm to me then:

A) What the price drop has been on 43 / 50ft lot's if any - and any other bonuses?

I've basically been holding out "knowing" taht eventually Mattamy will have to cut the prices - anyone have a diffentive answer?

Are the "sales" only on a select few lots ? Or across the board?

Thanks!
Andrew.

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This makes perfect sense, but I am certainly out to take back anything I can get. I heard in the news of a lot of buyers walking away from new home deposits in the US or threatening to do so if they could not reduce the purchase price. I realize their situation is much worse south of the border, but again if there was any chance of me re-negotiating I was willing to take the steps to do so.

One of the reasons I wanted a reduction was that in this economy instead of helping customers Mattamy implemented a new policy that 30% of upgrades purchased would be required immediately. This is instead of the whole amount being added to the purchase price as they did previously. It would be nice to keep the money in my investments earning instead of in their hands. In addition they have not built my house yet or purchased the materials to do so. Having personally sold over $20 million dollars of steel last year I know that building materials are MUCH less expensive this year. I also know any work subbed out is at a greatly reduced rate with less jobs for contractors to bid on and their profit margins tightening up.

I work for Russel Metals.

I'm not hung up on this issue, I was just looking to network and see if anyone had success in doing this. I will be happy to move into my new home and even more happy to stay there for a long time. I won't miss trying to 'flip' and move twice in 16 months.

I phoned the sales office yesterday as I am interested in the Quincy Corner detached model. They have several availble in April and Sept/09 roughly. They are selling for $366,000 and offering a special on them of $10,000 off the price or $15,000 in upgrade.

I believe with the widelot townhomes they are offering $10,000 off them too and can't remember if they are offering $15,000 in upgrades.

FYI - i went to the sales office today - and the prices for most 43 ft lots fell about 5k - some up to 10k....

I expect these to personally fall significantly more given that the avg price home in milton has fallen i'd say about 10 %..

Andrew.

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You're not totally right....I was going to get 28's