Browse Forums Building A New House 1 Jun 22, 2009 1:06 pm Just need some opinions on what to do here and what rights we actually have. We're building with one of the big builders and we gave our initial deposit ($550) back in November 08 and have been working on the tender, contracts etc since then. I had a look at their website and noticed that the base price for the house we're building is now 10k less than what is in our tender. Obviously over the months it has gone down. I spoke to the builder about this and asked for the base price in the tender to be changed and they advised that since we had already started then they aren't able to amend the tender to the lower base price. We're FHB and haven't signed contracts yet and 10k is a big deal for us. On top of that, they're asking for an extra 3k as we hadn't signed contracts within the 6 months period from giving the intial deposit (their "policy"). So now, we're being asked to pay an exta 13k compared to someone who would buy the exact same house today. If we haven't signed contracts, are we still able to have the base price in the tender amended? I told the builder that I would cancel this tender and start a new one and they advised that as we are in their system, then they will not guarantee the base price currently offered. Can they do that? Are we entitled to have the tender amended? Has anyone been in this situation before? I really don't know what to do Re: Base price now 10k less - What rights do we have 2Jun 22, 2009 1:20 pm I would check your paperwork to see what commitments you have made by handing over the $550 initial deposit. If you can get out of your commitment and only loose the $550, then you ought to consider starting over. However, are you sure that the new base price includes everything that you have in your current base price. The builder may have spec’d down the house as well as discounting the price. It is surprising that the base price has come down though. Since Nov 08, our builder’s base price has increased twice. Re: Base price now 10k less - What rights do we have 3Jun 22, 2009 1:38 pm I had a quick look through the standard inclusions and everything still appears to be the same. We have also recently paid the tender deposit and I was told that we would lose the whole lot if we were to cancel...I will check the paperwork though. My concern is that if we cancel and start again, then they will "get us" along the way some how. Not sure if it's worth the risk. Re: Base price now 10k less - What rights do we have 4Jun 22, 2009 2:27 pm For the sake of $550, I'd see what other builders have to offer. Re: Base price now 10k less - What rights do we have 5Jun 22, 2009 2:30 pm You could voice your displeasure over the fact you're paying more than others currently are and see if you can score some free upgrades rather than a drop in price. If you've only invested $550 then it might give you some bargaining power. New beginnings. Re: Base price now 10k less - What rights do we have 6Jun 22, 2009 2:36 pm We have paid $550 plus just over 1.5k for the tender and I think we're entitled to some of it back...I think. I will call them back and discuss it one more time. Thanks for the tips. Re: Base price now 10k less - What rights do we have 7Jun 22, 2009 2:46 pm I would be THOROUGHLY pi##ed of it that happened to me. It does sound very strange that the base price has decreased if the house specs and inclusions haven't changed. If you had only paid the $550 initial deposit then I would dump the builder and go with someone else. As you have also paid the $1.5K then I would try and plea to the builder again. As Locus suggested maybe they can throw in some upgrades to appease you. However, it would still leave a sour taste in my mouth knowing that in effect you will be paying $13k more than someone who signs up today. As the FHOG looks like it will be extended (subject to legislative approval) after 1st July you have time on your hands to start the process again with another builder. I feel for you! Building Atlantique by Carlisle Homes in Alamanda, Point Cook Alamanda Stage 8B Re: Base price now 10k less - What rights do we have 8Jun 22, 2009 2:49 pm not a nice surprise at all. I wouldnt be happy either. My question is what would stop you from cancelling, then re-signing with them at the new price. You might lose $550 but you will get the new base price. You could then argue that your pre-tender site costs etc have already been done, therefore you should get a credit for this? Not sure if the builder would let you but I guess you'd have to ask. Re: Base price now 10k less - What rights do we have 9Jun 22, 2009 3:44 pm Tough titties if the price went down after you signed up. If you are so cut up about it, take your business elsewhere, or cancel and start a new one. They should be able to give you a new job number and cancel the old one. Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! Re: Base price now 10k less - What rights do we have 10Jun 22, 2009 3:53 pm I don't see how they can tell you that they can't guarantee you the new base price, I mean are they planning on putting it back up the day that you cancel your contract!!! Even if you have the full $2k to lose, surely the builder can see that you would still be better off - cancel the contract and lose the $2k you have paid to date, sign up for the house at the new base price paying the $550 and $1500 all over again, and you are still at least $6k better off!! In saying that I can't see why you would lose the whole $1500, I thought you'd only lose what they have spent so far (so has a site survey been done, or soil tests etc). Either way if you are thinking of doing what most of us would think reasonable, then be sure to double check the specifications and inclusions, and I guess like you say maybe they would get you elsewhere (pump up the earthworks cost or something else that's not in the base price). Re: Base price now 10k less - What rights do we have 11Jun 22, 2009 3:55 pm I'm interested to know what builder it is. Everyone else's base prices are going up, it seems strange that it's gone down. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: Base price now 10k less - What rights do we have 12Jun 22, 2009 4:00 pm Ever bought the most gorgeous handbag to walk past the shop the next day and see it on special for 50% off. You feel ripped off!! In the case of the handbag it's just bad luck. In your case I wouldn't take it ****** down although I think you're at the discretion of the builder. Fi has moved in!! Re: Base price now 10k less - What rights do we have 13Jun 22, 2009 4:41 pm joles I'm interested to know what builder it is. Everyone else's base prices are going up, it seems strange that it's gone down. Their blog states it's Henley....... If builders offer a markdown on their houses you can usually be sure they have taken it up elsewhere ! You would also need to look at how cancelling would affect your FHOG (if it has any affect)........ Re: Base price now 10k less - What rights do we have 14Jun 22, 2009 4:51 pm I thought it sounded like Henley as I know they jacked up their price on our house 20 grand and then dropped it again with the "specials". <I deleted wrong info! Read post properly next time>
If it is Henley...just be aware that their "extras" did go up. That might not be an issue if you are just building the basic house though. Re: Base price now 10k less - What rights do we have 15Jun 22, 2009 4:56 pm I spoke to one of the sales consultants and she explained a few things that now make sense. The builder has actually increased the base price not decreased it and all of the sales promotions have caused a confusion with the base price. So in the end I'm not getting ripped off as I originally thought...ooops!! Thanks for the tips though, I was constructing good arguments which I will keep for furture reference Re: Base price now 10k less - What rights do we have 19Jun 22, 2009 5:47 pm We too were confused by base price intitially. It came down to Henley admitting they were using a poor marketting campaign at the time. Sometimes it seems like they use it on purpose, knowing it will confuse, then people are too keen to go ahead with their dream to turn back. The difference was $10k for us too. After many explanations by them, we accepted what they said, if not fully agreeing. We're further along now, and really that was the only hiccup we have had. Blog:http://tamdaz-themajestic.blogspot.com The Majestic - Henley - Adelaide Thread:https://forum.homeone.com.au/viewtopic.php?f=31&t=20635 Day 200 23-4-10 Re: Base price now 10k less - What rights do we have 20Jun 22, 2009 9:44 pm Ari, I will look into this but either way that means that we have to sign by the 26th of June which was the initial plan...well actually the 30th of June because of the whole FHOG thing but we put it off because of little confusions like this. I will put it to the builder and hope for the best TamDaz, the consultant I spoke to today admitted that the day these new promotions began back in Spring 08, even she found the whole thing confusing. But she was helpful in the end though which is good. She also mentioned that all of the sales/promotions were ending as of 1st July. Apparently they're getting rid of them all completely so we're sorta lucky that we got in when we did. The only thing to add to these comments is that where possible it's always good to try and work with people than just say "no" because you can. Having someone… 4 17148 at most it will have a short lintel which could be moved up just below the ceiling or even above. Above means you need to patch the cornice and might need to deal with… 2 61375 I've filled, levelled and compacted around 100mm of roadbase in preparation to lay some outdoor court tiles. Prior to doing the final compaction, I dusted the top with… 0 3044 |