Real estate question: Can another buyer outbid me for the new construction home and lot I chose?
I am in Texas, and my husband and I are considering getting a new construction home in a new subdivision. The lot we want isn't going to be available until December to put in a reservation for. I've already requested this lot and the home consultant promised to call me the day it is available so I can buy it.
But I've seen how fast these new construction homes are going, and it turns out the plan we want is the most popular one of the five choices and someone else has also requested my same lot. The way this subdivision is being set up is every 5th house will be the same. The home consultant mapped out the subdivision with my model on the lot I want and he just told me that someone else wants that same plan and that same lot. And all the other lots with this home plan on it have already been requested.
So my question is, if I put in a reservation for the lot and the home plan on that lot, is it possible that I could be outbid by another buyer for the home and lot that I chose? The house will be 320K but what if another buyer comes along and is willing to pay say 350K for it even if it's my home plan? Could they get my house? I've always thought that a home plan was a guaranteed buy and I wouldn't be competing with anyone else.
- Anonymous1 month agoFavorite Answer
Of course someone can outbid you.
They are not accepting offers on the property until a certain date. On that date they will look at the offers they've received and choose the one they like the most.
Until you have it in writing, you are not guaranteed anything.
"If it's a builder owned lot why won't they accept a contract now with earnest money now?" Why would they take 320k now when they can build excitement and get multiple higher offers on their chosen date? This is a highly sought-after lot. They are smart to milk it. After the bidding war, the losers will be glad to get a less desirable lot for a lower price.
- Landlord365Lv 61 month ago
You thought wrong. You are not guranteed anything until you are under contract. Until then it is up for grabs.
- ScottLv 71 month ago
You haven't chosen anything. You haven't even reserved the lot. When reservations are accepted, yes you could be outbid,
- MaxiLv 71 month ago
Until you sign a contract and part with a deposit for the plot along with the price they are going to sell it to you then it isn't 'yours' it belngs to the builder and they can sell their plot/house design to the highest bidder............. you have already been told several people want to reserve the same plot
- How do you think about the answers? You can sign in to vote the answer.
- realtor.sailorLv 71 month ago
If it's a builder owned lot why won't they accept a contract now with earnest money now?
- EvaLv 71 month ago
It's not an enforceable contract until consideration (money) is exchanged. If you have not put down a payment on the lot and house, it's not yours.