It’s a concern of many right now. Today’s “incentives” offered by new home builders to help increase foot traffic are every where right now… but what happens if they go under? If you are buying new construction, you need buyer representation more now than ever before because of this very issue. If you have questions regarding a new construction purchase, call us and let us assist you. There are many different things to consider during your new construction purchase, however, let’s look at a few from from a generally forgotten perspective. Builders are going out of business each and every day. How does this affect their existing construction warranty’s? What happens if I am under contract to purchase a new construction home and the builder goes under? How do I get my earnest money back in this situation? There are many questions to ask before entering into a purchase agreement with a builder, regardless of the incentives being offered.
Do not be fooled into thinking larger home builders are immune from the current economic condition. The master planned area of Rhodes Ranch in Las Vegas was noted by Moody’s on Tuesday as currently having a negative outlook due to a serious grim liquidity situation. Current revenue and expected revenue for The Rhodes Companies LLC is not expected to cover existing required debt service. As a result, the company is burning cash reserves left and right. Always be certain to take your time and do your research before entering into a purchase agreement. Many incentives are placed with time restrictions to help induce the seller into making a drastic decision quickly. Relax, do your research, the incentives will still be there next week.