Good for the Goose, Good for the Gander

Question:  I negotiated the purchase of a condo, downstate from here recently, and closed a about a month ago. Most of the units in the complex are unsold. I happened to be on the Internet the other day and saw that the builder has now reduced the asking price of similar units in the complex by $35,000.

I did not pay full price -- they met my offer by reducing the price about halfway and made up the rest with seller's credits which I took at closing in various ways. Their rationale for this approach was to "keep the comps up" (my official purchase price was just under that of the last buyer -- so there was a pattern of keeping the comps up).

This maybe a silly question -- but I have to ask: Do I have any recourse against them for dealing with me in bad faith? They had to have been planning this huge reduction for a while.

Answer: A builder is simply a seller. Like any seller, the builder wants as much as possible from every sale. You bargained with the builder and obtained a number of concessions. These concessions must have been attractive, otherwise you would never have purchased the unit.

But, markets change. A good deal today may not be so good tomorrow.

To see if you were treated unfairly, let's try the "good for the goose, good for the gander" test. Imagine that the value of the unit soared $50,000 within a month after buying. Would you have gone back to the builder and said, "help me out, I should be paying you more for this unit so let's renegotiate so I can give you more money." Just a guess, but I don't think so.

As to maintaining comps, the builder is right. The builder has multiple units to sell. He or she wants to maintain prices to maximize future sale values and to keep recent buyers happy with their purchase. If roles were reversed you would have the same strategy.