Homebuilder Raises Price On Buyer Under Contract

Proving that the earth is flat, and hell has frozen over, a local homebuilder recently (January 09) called a buyer who was about ready to close on his new home, and asked him to re-sign papers, as they'd had a price increase, and wanted him to pay the new higher price. Incredible? You bet... Except it did not happen quite that way...

In reality, the homebuilder had lowered the price they were offering new customers, and were asking the buyer already under contract to sign papers to reflect the lower price... And this happened AFTER the final walk-thru, AFTER the loan docs were signed, AFTER the buyer had his funds deposited, and just a day or two before the keys were to be delivered... This price change was $13,500 on a $240,000 sales price...

Could the homebuilder have just kept quiet? Sure... There was $13,500 in it for them to do nothing. Was taking this action the right thing to do? Probably... Buyers talk, at the pool, the mailbox, etc., and word gets around...

Take home lesson? In challenging times, some find it easy to compromise their ethics. Here was a builder who chose to do the right thing, seemingly without even looking for publicity. They have not asked me to promote them, but I will. When so many builders operate without a shred of conscience, hiding behind bankruptcy laws when it suits them, re-emerging with a slightly changed name, ready to have their way with the next group of buyers, it is a pleasure to find a builder who stands tall, takes responsibility for their actions, and does the right thing... Oh yes... the builder? K Hovnanian Homes, one of the largest builders in the country. They get it...