Post by killercupcake on Jan 5, 2016 10:43:32 GMT -5
We had to put 1k down for earnest money on our new build. Final purchase price was 225k. We did get a slight discount on the earnest money though because H is a veteran.
We were required to pay at the initial contract signing.
When we sold, I think the sellers had to put down $500, but we're in a LCOL, and the house sold for like $65K. The one we bought, which was about twice what we sold the old one for, may have been $1000? I'm not entirely sure.
Post by amberlyrose on Jan 5, 2016 10:50:49 GMT -5
We recently received the final contract on the new build we're looking at and may walk away. They want 3% now and 2% at framing, held in a non-interest bearing account held by a title company.
It's about 20k we'd not gain interest on for about a year. Our last house was 1.5% and our first was 1k.
We recently received the final contract on the new build we're looking at and may walk away.
I think that is kind of nutso. Are you working with a custom builder though? We were looking at a custom builder but they require so much more upfront, understandably, because if not associated with a development they are on the hook to sell something if the sale does not go through.
We recently received the final contract on the new build we're looking at and may walk away.
I think that is kind of nutso. Are you working with a custom builder though? We were looking at a custom builder but they require so much more upfront, understandably, because if not associated with a development they are on the hook to sell something if the sale does not go through.
Nope. I'd understand if it was custom, but we are getting a standard town home, only allowed certain upgrades. We'd have to pay some cash up front for the upgrades, too.
The realtor basically told us that they don't want to build 20 individual homes when DH asked about some wiring stuff.
We were just looking at a commercial builder in a community south of us. The house would likely cost about $420k and they wanted $5k in earnest money, plus $2,500 toward any upgrades. So, if we upgraded cabinets, that's an extra $2,500 up front, if we upgrade carpet, that's an extra $2,500 up front, etc. The earnest money is given at the time the contract is signed and the upgrade money is given when they order the cabinets/carpets/whatever.
We aren't going to do it. It ended up being way too steep. Too much nickel and diming.
We were just looking at a commercial builder in a community south of us. The house would likely cost about $20k and they wanted $5k in earnest money, plus $2,500 toward any upgrades. So, if we upgraded cabinets, that's an extra $2,500 up front, if we upgrade carpet, that's an extra $2,500 up front, etc. The earnest money is given at the time the contract is signed and the upgrade money is given when they order the cabinets/carpets/whatever.
We aren't going to do it. It ended up being way too steep. Too much nickel and diming.
We recently received the final contract on the new build we're looking at and may walk away. They want 3% now and 2% at framing, held in a non-interest bearing account held by a title company.
It's about 20k we'd not gain interest on for about a year. Our last house was 1.5% and our first was 1k.
I am in Canada so things are a bit different here. We bought a new build (condo) and had to put $5k down when we signed the contract - we had 5 days to walk away and get that money back. After that we had to put the remaining $20k of the first 5% deposit. 3 months after the intitial deposit we had to put another 5% down (when the ground was broken) and then anoher 5% about 3 months after that. The finaly 5% is given on closing. We had to put in cash any upgrades/changes we wanted. And then should expect another 5% on top of the 5% deposit for closing costs.
eta - Canada so obviously insane housing market, HCOL.
We were just looking at a commercial builder in a community south of us. The house would likely cost about $20k and they wanted $5k in earnest money, plus $2,500 toward any upgrades. So, if we upgraded cabinets, that's an extra $2,500 up front, if we upgrade carpet, that's an extra $2,500 up front, etc. The earnest money is given at the time the contract is signed and the upgrade money is given when they order the cabinets/carpets/whatever.
We aren't going to do it. It ended up being way too steep. Too much nickel and diming.
That's how we're feeling.
If it were 5k, though, I'd sign in a heart beat.
Yeah, our problem with it is that the final purchase price is significantly more than the base price. Adding a door between the bathroom and bedroom, for example, was $500. I realize this may be a standard new build practice, but it just doesn't make sense for us.
Plus, they order cabinets, carpets, etc. pretty soon after signing the contract, so it would have been a similar situation to yours. I'm guessing close to $20k total within the first couple months of signing.
Yeah, our problem with it is that the final purchase price is significantly more than the base price. Adding a door between the bathroom and bedroom, for example, was $500. I realize this may be a standard new build practice, but it just doesn't make sense for us.
Plus, they order cabinets, carpets, etc. pretty soon after signing the contract, so it would have been a similar situation to yours. I'm guessing close to $20k total within the first couple months of signing.
And that was supposed to say $420k, not $20k. lol
Yeah, with the upgrades we'd want (fireplace and finished roof deck), it'd add another 10k.
DH is trying to negotiate it with them and we may bring in our own realtor.
Yeah, our problem with it is that the final purchase price is significantly more than the base price. Adding a door between the bathroom and bedroom, for example, was $500. I realize this may be a standard new build practice, but it just doesn't make sense for us.
Plus, they order cabinets, carpets, etc. pretty soon after signing the contract, so it would have been a similar situation to yours. I'm guessing close to $20k total within the first couple months of signing.
And that was supposed to say $420k, not $20k. lol
Yeah, with the upgrades we'd want (fireplace and finished roof deck), it'd add another 10k.
DH is trying to negotiate it with them and we may bring in our own realtor.
Yep. This is $4,500 for the fireplace, big lot premium, $3,500ish for counter upgrades, adding a door between the bedroom and bathroom, paying for under mount sinks instead of the standard over mount sinks etc. It seems like there are tons of minor things we want/need to add and it all just became too much. We went from thinking it was a solid option (base price of $380k and figured we'd add $10-15k in upgrades) to being totally out of our range at $420-430k. I guess we were being unrealistic about what the base price would include.
Basically, I'm throwing myself a pity party because I can't afford to live here. lol
I hope you're able to get them to come down on the earnest money/up front cash.
Yeah, with the upgrades we'd want (fireplace and finished roof deck), it'd add another 10k.
DH is trying to negotiate it with them and we may bring in our own realtor.
Yep. This is $4,500 for the fireplace, big lot premium, $3,500ish for counter upgrades, adding a door between the bedroom and bathroom, paying for under mount sinks instead of the standard over mount sinks etc. It seems like there are tons of minor things we want/need to add and it all just became too much. We went from thinking it was a solid option (base price of $380k and figured we'd add $10-15k in upgrades) to being totally out of our range at $420-430k. I guess we were being unrealistic about what the base price would include.
Basically, I'm throwing myself a pity party because I can't afford to live here. lol
I hope you're able to get them to come down on the earnest money/up front cash.
Can I join your pity party? I'm totally prepared to walk away from this, but I'm still sad.
Yep. This is $4,500 for the fireplace, big lot premium, $3,500ish for counter upgrades, adding a door between the bedroom and bathroom, paying for under mount sinks instead of the standard over mount sinks etc. It seems like there are tons of minor things we want/need to add and it all just became too much. We went from thinking it was a solid option (base price of $380k and figured we'd add $10-15k in upgrades) to being totally out of our range at $420-430k. I guess we were being unrealistic about what the base price would include.
Basically, I'm throwing myself a pity party because I can't afford to live here. lol
I hope you're able to get them to come down on the earnest money/up front cash.
Can I join your pity party? I'm totally prepared to walk away from this, but I'm still sad.
Please do. Let's drown our sorrows in wine.
Out of curiosity, where were you looking? We were looking in Parker. Fucking Parker for over $400k. smh.
Post by cinnamoncox0 on Jan 5, 2016 15:14:23 GMT -5
Where I am, my experience as both a buyer and REA, $1,000. I have only worked in the $200,000-1mil range, I don't know if very high price it's diff, but otherwise it's been $1,000 regardless of price.