Buying or Selling a Home/Builder-delayed closing

Advertisement

Expert: - 8/26/2008


Question
Our closing was delayed 4 business days by the builder or lender because few homes in the $600,000 range have sold so there are no real and recent comps.
They waited for a new home to close by the other builder in the development so they would have the higher comp.
We are about to back out of this deal if they do not lower the price to the appraised price of the county tax board (511,000) and are expected to pay 619,000.  There is some buyer’s remorse but do we have a strong enough reason to claim unfair business practices in their delaying our closing for higher numbers?
If it becomes necessary to hire an attorney to recover our earnest deposit of $20,000, will it be worth it to get the deposit back?
Builder – Beazer, lender –Countrywide, State – Virginia, County – Frederick
Thank you  

Answer
Hello James - The assessors board is not an appropriate value of a home.  In addition, the assessors value usually does not take into consideration the land unless separately listed. Recent (like) sales are the clearest indication of a properties current value provided the 'likeness' and amenities are appropriate. Usually, an appraiser does not go outside a 1-3 mile range from the property and takes only those properties which have closed in the most recent 6 months into the calculation. There are some exceptions to these rules although strictly enforced. I cannot answer whether you have a 'strong enough' reason. Prior to determining whether you can/should withdraw/cancel your purchase would depend on a legal interpretation of your liability for the builders remedies. The contract basically should stipulate how long the builder can take to close, and your options as well. AS far as the costs of representation for legal counsel and whether it would be worth it to go after your deposit... the deposit may not be the only liability you would owe in a default proceeding. Once again, it should not cost you anything to have an attorney listen to your complaint... they can counsel you as to whether you have a case or not. Your lender is under strict guidelines and so is the appraiser. If there is a delay in closing it is by YOUR lender attempting to get the property to appraise 'in your words'. If you can get an appraisal copy of the initial appraisal then hold the builder to that opinion of value you may have a negotiating opportunity... take a look around at other sales... then only you can make an informed decision as to the course of action to take based on legal information. Hope this helps - Todd

Buying or Selling a Home

All Answers

Answers by Expert:

Ask Experts

Volunteer

Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

©2012 About.com, a part of The New York Times Company. All rights reserved.