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Backing out of new build. Am I crazy?

I entered into a contract for a to-be-built home in early September. The total price after we selected design options was $816,000.

Fast forward to today, the builder is selling a quick-move-in home across the street for the same square footage, beds/baths and finishes for only $730,000. On top of that they’re giving $70k in “flex cash” to use at the buyers discretion.

Moreover, the existing homes with similar square footage that are for sale in the neighborhood are all listed in the low $700’s.

If I back out I lose my earnest money, which unfortunately is a lot ($40k) but on the flip side - I don’t walk into massive negative equity.

I talked to the builders agent and she said to “wait out any negotiations until the closing phase” (60 days out from home completion, which is estimated for April/May) but that just feels like a negotiating trap.

She also acted as tho I’m being crazy which begs the question - am I acting insane?

submitted by /u/oohk1llem
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source https://www.reddit.com/r/RealEstate/comments/1hbrlde/backing_out_of_new_build_am_i_crazy/
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