quick question

[J-San]

Hi to all,

I'm new here and had a quick question. My wife and I bought a town house in Florida about 7 or 8 months ago. When we bought it, they were selling for $199,999 and I just checked their website (KB Home) and the prices have dropped! They are now selling for $152,990. Is there anything we could do?

[Raj]

J-San, were you looking to sell it quickly for a profit? If so, just hold on to it for a while, rent it out if your not doing so already. I bought a property in FL as well through KB, with a couple of friends and we are in the process of renting it out.

[J-San]

No, not trying to sell. Just wondering if there was anything I could do, some people were telling me that there could be legal action. So, I was just curious.

[Hannigan]

Similary situations are happening around the country, J-San. As debt-strapped homebuilders lower prices to move inventory, original buyers in a complex are looking at listing prices lower than their original purchase price on the same models. I doubt if the homebuilder has any obligation to earlier buyers with regard to selling price. Homebuilders have their own problems with prices softening.

[REbuyersgroup]

My condolances for purchasing a KB Home. All the large national builders like Centex, Lennar, DR Horton, KB Homes, and many more all held back inventory during the boom times hoping to get more money for product at the end of the project. Well now they are stuck with that inventory and unloading at cost.

I specialize in working with builders to liquidate their inventory. Example.

We just purchased 13 townhomes. Appraised value $245,000. Our price $155,000. These are all brand new 3br, 2.5 bath townhomes. Nice area. Can't say where, as we are still finalizing the transaction. Major national builder.

Unfortunatley builders are not responsibile for market conditions. Just hold on to your home and wait it out. Nothing wrong with that.

You should purchase a home because it fits within your budget and you want to live there. Not for any appreciation you feel it may generate. Historically, you should see a 7% gain per year on property.

When I purchased a home back in 1991 at the height of the last boom, it tooke me 10 years to break even, and 4 years after that to double my money. Go figure.

[Greg]

No, not trying to sell. Just wondering if there was anything I could do, some people were telling me that there could be legal action. So, I was just curious.
On what grounds would you have legal action? Since when is losing money a punishable offense?

[Codythebest]

On what grounds would you have legal action? Since when is losing money a punishable offense?

I agree. It's offer and demand. They are the builders. They could even sell they own stuff for one dollar if they want to...

[Jaysonnhs]

There's no chance of legal actions in my opinion. Home builders are unloading inventory and slashing prices across the nation. Allowing legal actions would devastate all builders. I agree with Rebuyersgroup, you should buy a home that fits your needs and wants and plan on holding. As with any investment, quick profits aren't the norm.

[kwaltersmi]

I seriously doubt you have any legal recourse. You signed the purchase agreement and closing documents out of your own free choice. That's the risk in a declining market. Stick it out long-term and you'll be fine.