While this blog is written primarily for the pre-sales Vue Charlotte buyer audience, I do try to keep the balance where I can and have always opened the forum for MCL to participate so we can all partner in making the Vue Charlotte a success. So far, there hasn’t been much MCL input and I continue to hope that will change. In the meantime, I think it is important for all of us to hear the view of our critics. I try to engage many points of view and these are some quotes from another forum I participate in to try and get guidance on how to tackle the decisions before us.
The first criticism goes something like this: “hard to imagine anyone would agree to buy property without a financing clause?”
The second criticism: “a purchase contract is exactly that, a contract. As such, you’re responsible to follow through on your agreement, just as the seller is.”
An offshoot of this criticism, directed especially at those that think MCL won’t sue: “Will the developer sue? I have no idea, but don’t take that because some people have not heard of people being sued on a mass basis, that it won’t happen. This is going to depend highly on who actually invested in the building and how they intend to protect their investment via the legal proceedings available to them. Ultimately it comes down to who ends up paying for this project. The investors can very rightfully claim, the building would not have gone up without promises, via these pre-sales contracts committing those who signed to purchase once complete.”
How a judge might see it: “What would happen had the real estate market was absolutely booming right now, and the developer decided to cancel these sales contracts and return the earnest money because he could make a lot more money by selling at a higher price. Would the buyers be happy about this?”
“The situation reminds me of the importance of having a good buyers agent. NEVER sign a contract without a financing contingency!”
“If I had a deposit down I absolutely would be scared about my liability.”
“There is no downside [to MCL] to holding people to the contracts they signed.”
“Major ‘teachable moment’ for both sides here…don’t jump on the train if you don’t have a plan B…obviously both sides had major blinders on..”
“I guess I am not understanding why you would expect a reduction in price if you agreed to pay X for the place. If the place had appraised for a lot higher, would you have offered X + difference to the builder as compensation? I wouldn’t think so. You guys said you signed these contracts knowing the ‘risk’. So this was the risk and it has come true. In any case, the anger and other emotions won’t do much to solve the problem.”
“This is YOUR fault for doing sloppy homework and buying with emotion plain and simple. You are going to have to suffer the consequences for your choices. That is the problem with this country. People do not take responsibility and try to blame things on someone else. Sorry, but you get no sympathy…”
“I hope this is a lesson to all to read your contract and have a good buyers agent before you sign!”
“I’m wondering why there weren’t any ‘escape clauses’ in the contract. Or was it a case of GREED that blinded the signers of the contract? Like ‘I’m going to get this damn property no matter what and resell it at a profit.”
“I question the description of ‘smart’ as applied to the purchase of a 50 story residential tower condo in a city that has no land pressures, no population pressures, and which is located in the middle of a pile of parking lots.”
“You got caught up in thinking this “investment” would keep appreciating w/o thinking for a moment that prices could go down. This is greed plain and simple. You bet on black and red came up on the roulette wheel.”
“Why should the builder eat the loss of your unit [by repricing] instead of you? You promised to pay X, and now you are reneging on this promise. To an outsider, it would seem the builder has met his end of the bargain and now what remains is for you to keep yours.”
“…you signed something for the biggest purchase of your life that you carelessly read (or didn’t have time to help you read). Now since prices have dropped you are looking to blame someone else and try to change the rules (ie contract)”
“…you are attempting to justify stiffing someone for 10s maybe 100s of thousands of dollars to pay in consideration of a project he built at your request.”
I’ll end this by saying this. We were certainly not smart enough to forecast the future when we signed back in mid-2000. We should learn from that and not assume we can now suddenly predict the future in 2010. Anything can happen that would spark a return of real estate values in Uptown Charlotte. All we can do is apply probabilities to all the scenarios before us, and then make our decisions and hope we are right whatever those decisions turn out to be.
Please share your feedback in a comment or write to Vuebuyer10@yahoo.com!