I recently signed a contract to build a house in Dallas and paid about $50k. House was going to be ready by end of this year. We were planning to move this summer and rent a place while the house was getting built. Now with the current virus situation I am concerned about a few things. Mainly what will be the impact on real estate
1.) If the market goes down what will happen to the value of the house I am building. Am I on the hook for the price I signed or will it be the prevailing price?
2.) Will I be able to sell my current house couple of months from now?
So, since there is so much uncertainty I was wondering if I can back out of the contract I signed without losing a lot of money. That way I will have one less thing to worry about.
Thanks for suggestions!
Would need to see your contract to help you AND new construction contracts are horrifically in favor of seller, unfortunately. I always advise buyers with new construction to consult with an attorney prior to signing new construction. Reason is that the builders typically write their own contracts which make it very difficult for buyers to get out of. So my advice is: go spend a couple hundred bucks and bring your buyers contract to an attorney and see what an attorney in your state says.
PS. What's your earnest money amount? Worse case, you're out EMD (earnest money deposit). Even with a large emd, sometimes this is better than going through on a sale. But again, consult with an attorney.