Renegotiating a contract after expiration

Started by bingbong

almost 15 years ago

Posts: 13

Member since: Jan 2007

Discussion about

I'm in contract on a new development condo, and have a rider clause that states I can cancel the contract if at least 51% of the units are not sold by a certain date. We're essentially at that point, with not enough units sold, meaning that I can get out of the contract if I wanted to. I'd like to know how I can use this advantage to renegotiate my contract, probably for a better price. Has anyone does this successfully? Any tips on how best to approach this, what to ask for, and how to phrase it to the sponsor/broker that I might be thinking of walking? Do I mention I'm getting cold feet and see if they come back with something, or should I outright ask for a discount (and if so, how much)? Any ideas would be extremely helpful. Thanks everybody!

Response by Brooks2

almost 15 years ago

Posts: 2970

Member since: Aug 2011

just walk away.... you'll have a better chance to renegotiate. It may take a long time before they get more buyers in this market

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Response by inonada

almost 15 years ago

Posts: 8085

Member since: Oct 2008

I think your best bet is "shock and awe". Tell them (not formally per the contract) that you're planning on canceling because the building is not 51% sold. Let them come to you in terms of "what can we do to make you stay". If you go in with indications that you are going to buy but just want to see what you can squeeze from them, I think you'll end up worse.

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Response by inonada

almost 15 years ago

Posts: 8085

Member since: Oct 2008

BTW, until when do you have to cancel? And when would you close if you didn't?

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Response by huntersburg

almost 15 years ago

Posts: 11329

Member since: Nov 2010

>I think your best bet is "shock and awe".

Oh great, we have our own Donald Rumsfeld here.

What's the next advice real estate advice, go to war with the army you have, not the army you might want or wish you could have?

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Response by Lawman

almost 15 years ago

Posts: 21

Member since: Aug 2011

Just walk away. They will come back to you. Do not tell them that you are planning to walk because that sends a message that your staying and you want a discount. When we "shocked and awed" we did not tell them before hand, we just lit them up without notice. Anyway, its probably too late for that as the developers read these boards as well.

Renegotiating a contract after expiration

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