Building a home is an exciting but stressful thing to do. With the housing market the way it is in Massachusetts and across the country, new home construction is booming, to the point that homebuilders can’t keep up with demand. Skyrocketing material costs are not helping the situation. In fact, it is the significant increase in material costs that is causing numerous issues between homebuilders and buyers who are already under contract.
Builders canceling contracts
When signing a contract with a home builder, one expects the builder to hold up his or her end of the deal. Unfortunately, numerous families all over the country are finding their contracts aren’t protecting them in any way. One family in another state recently .
According to a recently published article, this family saved and worked hard for years to build a new home. They found what they wanted, signed a contract in Jan. 2021, and everything was going well until the end of June. They received a message from their builder that the cost to complete their home increased $65,000. They were told they could pay or walk away. Before they made their decision, the builder made it for them and canceled the contract — citing a dispute over costs.
Builders refusing to answer questions
In this case, the buyers claim that the builder refused to answer their questions or address their concerns. They wanted proof of price increases. Their real estate agent attempted to get this information but was refused on more than one occasion. They feel their builder never gave them a chance to really consider their options and ended their contract without just cause.
Builder contracts do not protect homebuyers
Many people in Massachusetts and elsewhere may not realize that builder contracts do little for them, but do everything to protect the builder, including making it easy for them to back out for just about any reason. Before signing, it is wise to have the contract reviewed by legal counsel to ensure it will serve one’s best interests, not just the interests of the builder. The is stressful, but it can be less so by doing one’s due diligence to understand contract terms and negotiate new terms if necessary. If a breach of contract issue arises, legal counsel may be able to help deal with that as well.