Yesterday we had some great comments come in that expressed various points of view and I am pasting them in below. I think the goal over the next few days would be to put together a comprehensive list of pros and cons; reasons to buy; reasons to hold off; reasons to walk away. I appreciate the folks that posted these comments below, and I hope we can hear from a few more people to build our list. To make your comments private, please send them to firstname.lastname@example.org. My only ask when you post publicly is that everyone’s Vue is respected and not disparaged. So far we have not had that problem and I am grateful for that!
I agree with your evaluation of this blogger, his pages are informative, fun, and balanced! I must say, though, I cannot possibly understand how you or any of us who have put money down could possibly think that closing is a good idea. It is like buying a property without knowing the price. Or better yet, its like buying a property knowing, essentially for a fact, that you are overpaying– you just don’t know by how much.I’m running from the Vue (guess which vote was mine in he poll!) Unless you are wealthy and don’t care about prices, I would suggest the same. Go buy it later at 50 cents on the dollar, once you are sure the building and whole economic venture will not collapse.
This just gets more interesting every day! I see that Arthur C. made a comment asking why anyone would proceed with closing and their pre-contracted price. I have a few possible answers:
1. They feel obliged to fulfill their contract despite the actual market value of their unit. They are trying to act in good faith, and in a sense act as if they had purchased the unit 4 years ago and the value it lost is on their backs, not the developers. (Admirable but I’d say if you walk away from your down payment and let the developer have their unit back, you are being more than fair to them.)
2. They are very financially secure and don’t mind buying something today that is worth 1/2-3/4 the price they are paying for it and they don’t mind taking the risk that the financial equation doesn’t close on homeowners fees due to low occupancy, etc. (walk away, buy again at the lower price, and donate your savings to the United Way!)
3. They are simply not paying attention. (anyone reading this blog probably IS paying attention).
I am curious if I left any reasons out? Why else would you close? Perhaps this is a question worth asking on the main page– “If you plan to close, what is your rationale for doing so?”
Holly – my reason for closing did not fit into any of the answers you outlined above. I don’t believe this a question that can be generalized. Everyone has their own personal financial and living situation. Each buyer will have an independent appraisal conducted for their unit. And The Vue has committed to “work with each buyer individually” (to what extent is also an individual situation). Why did I close? My original reasons for purchasing had not changed (I still think it is a fantastic project), I do believe Uptown real estate will rebound in the long-term, and my appraisal wasn’t even close to as dreadful as many are speculating. With that said, I can tell you that appraisals will vary wildly depending on the type of unit, floor location, when purchased, upgrades, who does the appraisal, etc. However, it isn’t a black or white answer until until the buyer has all of this info compiled.
I have to say that this blog is extremely informative and well rounded as far as the pro and con debate go. I do wish I heard more from those who are planning to close as I am in the same boat as many… trying to figure out which way to go on this venture. I have been approved for a loan to close on the unit but due to this project taking longer than anticipated, my life went in another direction and I will no longer be relocating to Charlotte. Personally, I would much rather walk away if there was a way out that didn’t include losing my deposit. I would be extremely interested in any feedback as far as this NY Times article goes and whether folks are hopeful that this law may help them.
I do still think the building and lifestyle are desirable and my unit looks to be beautiful. So if I close, I will make the most of it and try to focus on the positive. But what I wouldn’t give to walk away clean from it all and leave those who can live there full time enjoy it to the fullest!
The Vue documents address the law in The Times article (also appeared in the WSJ)- so there’s no out there. I’m convinced that the Vue is playing poker right now- they are acting and playing a role that appraisals and values are there and that they can’t negotiate price due to the agreement they have with there lender. Also- appraisers must be escorted by the sales team- full pitch mode! The goal is to “block close” as many of us as possible so comps are stacked with Vue coming in at $400/sq foot even though all other Uptown condos aren’t even turning over at $240/sq foot. In 2007 along with The Vue I bought a unit in Trademark at $360k- current sell value is $240k. Painful to walk away from deposits, but think of laying out an additional 10-20% only to then see prices plummet when the Dominos start falling. Nobody’s fault- but that’s where we’re at.