Newly Constructed Homes

Performance Property Real Estate Question

Huge Risk To Buyers Of Newly Constructed Homes

Q: Gerald, we signed a contract to buy a summer home last year.  We expected the builder would be finished by now, but it has taken much longer than expected.  Mortgage rates have gone up a lot.  Can we back out and if we do, will we lose our deposit? Dalia, Edison, N A: Home buyers who signed contracts to buy newly constructed homes in 2021 are potentially facing almost double the mortgage payments they may have initially expected because mortgage interest rates have risen from 3% to almost 5.5% as the Federal Reserve started raising short term interest rates.  There is always a greater mortgage interest rate risk whenever a real estate transaction takes longer to be completed.  Labor […]

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