All Forum Posts by: Melanie Liu

No, but that's what the builder is doing.

Again, thank you all for your responses! To be fair to the builder, he offered to have my deposit back or accept the new market price. During the past 7 months the builder released more homes in phases in the same sub-division, each time with higher prices. I'm curious what he'll do with those buyers. I totally understand that material prices have gone up, and it's tough on builders. I'm willing to accept some price increases, but not the new market price. One way to another, that's the basic rule I'll stick to.

I appreciate all your feedback, advises, and philosophical thinking ("Life is too short for anger." - love it). Year 2000 is unprecedented, and I wish everyone good luck in real estate investing.

Thank you all so much for your replies. Very helpful! My contract didn't include a clause about escalating price or cancelling contract, so I guess that's why the builder wants me to accept the new price instead of cancelling the contract directly - he knows that he doesn't have the right to do so. I've contacted a couple of local attorneys, one said "take or walk", the other one would like to review the contract for $500, which is reasonable. I'm hesitating because the sub-division is basically built for rental, and will be managed by the same builder for rental management after completion. I don't want to have a tough relationship with the builder later on even if I can win the fight.

Does this experience happen to anyone else? Am I the only unlucky one here?

Thanks, Corby! I made a newbie investor's mistake by not having a buyer agent - I was introduced to this project by a friend who bought a house in the same sub-division before. I'm in MA and the house is in TX, and that made it even more difficult to deal with this builder.

@Charlie MacPherson Thanks, Charlie! I emphasize with the builder on the increased building cost, but they could have told me much earlier about this, so I could have moved on to other investment. The communication with this builder is very poor - they basically ignored my emails and inquires altogether. 

We signed the purchase agreement back in December 2020, and it was scheduled to be completed by 4/15/2021. However, the builder has been delaying the building, and recently we were told that they wanted to cancel our contract due to building cost increase, or we can accept the $100K increase in price. BTW, the builder hasn't even started digging yet. 

What options do we have now? Does this happen to other buyers / owners? I'm mad because if they could have told me much earlier that they couldn't deliver on time / price, then I would have moved on to another house. After months of delay and big appreciation in general market, it's hard to find another house at that price range.

Like to hear your suggestions. The house is in Texas.

@Marlen Weber I'm a new investor, and just signed agreement to purchase a house in the Steele Creek area in Charlotte. It's a new construction and will complete in March. The subdivision is Hamilton Green. How is rental market there? 

If someone has a good PMC in Charlotte area, please recommend. My property is in Indian Trail, Charlotte area.

Thanks all for your replies. This is a relatively new house (7 years old). So far I have to had someone fix: HVAC, replacing hot water vales under kitchen sink, wiring in one wall, leaking in the master bathroom, falling of cabinet in the garage (not sure what caused it), and now the leaking of the refrigerator. This is my first investment property, and it's been only 3 months. That's a big hit to me as a new landlord. I can't help but keep wondering if it's just my bad luck...