Should Builders Be Allowed To Use The Deposit To Build In This Market?

 

There are some standards that need to be changed as the times change.  One challenging rule that many of our builders exercised in the past and very few continue to employ is “using the buyer’s deposit money to build the house.”

Most of our builders have agreed to allow our office or their attorneys to escrow the deposit money while the home is being built.  There is one builder who is “old school” and he refuses to allow that to happen.  He has always used the money to build his homes.  He also refuses to "personally guarantee" that deposit money.

We have a deal now that will probably not go together because of this stumbling block.  It’s another sign of the times.  This builder does not understand, since he is not one of the many builders who have taken it on the chin because of the market conditions.

He is in good financial shape and he owes nothing on his subdivision.  It’s not a personal attack on the builder by the buyer.  It’s a buyer who is protecting his money; it’s a buyer who has heard horror stories; and it’s a buyer who does not want to deal with any unexpected occurrences that may put his money in jeopardy.

I fear this is a builder who will not change the way he has always done business, no matter what the times dictate.  He marches to his own drummer, and he’ll just wait for the next deal.  Nothing’s easy in the real estate business!!

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About the Author: 

Barbara Todaro is an award winning real estate agent with 35 years of experience and is the marketing agent for the Kuney-Todaro Team.  The Kuney-Todaro Team is continually recognized every month as a top producing team in New England, since its inception over 10 years ago. 

For information about our new construction, visit our website at www.newhomesinfranklinma.com.  This site is focused on new homes in Franklin MA. 

If you are interested in purchasing a Franklin MA property, visit our buyer’s website at www.barbaratodaro.com.  Email or call to make an appointment to view our listings. 

If you are considering selling your home in Franklin or one of the surrounding towns, visit our seller’s website at www.franklinmanewhomes.com for a Free Market Analysis of your property. 

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Barbara Todaro, Great Grandmother to Caleb, Santino, Aiden and Gianni       

Todaro Team - Retired

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