Monday, July 23, 2012

Ethical Dilemma

We're at a bit of a crossroads, here, and I'd like to hear some opinions from you all.  The plan all along has been to sign a non-contingent contract in our #1 neighborhood.  Well, a few things have come to light that make our lot choice significantly less-than-desirable, and there are no other open lots in the neighborhood.  That leaves us with three options:

1.  Build on the undesirable lot in the #1 neighborhood.
2.  Move to another neighborhood where we can get the exact same house on a pretty good lot for the same amount of money, but farther away from where we really want to live.
3.  Bump somebody who is contingent off their lot to stay in the #1 neighborhood.

None of those options is particularly appealing, but #3 is the worst.  I can only imagine how it would feel to be bumped off, especially since the only three sites left aren't great.  At the same time, we don't particularly want to drop this kind of money on less than the home of our dreams, because this will be our forever home.  I know I've read at least one blog that mentioned being bumped, but I don't remember whose it was.  If you got bumped, could you chime in?  If you know someone who did, could you point me to them?


**Update**
#3 isn't going to be an option after all, the SR has confirmed that there are no contingencies remaining in the neighborhood (it's almost complete, so I guess I shouldn't be surprised).  But since this hasn't come up on any blogs that I've read, please chime in with your thoughts anyways...we might help someone else down the road!

14 comments:

  1. i say move to the neighborhood AND location you want otherwise u might regret it in the end.

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    1. it sucks at the bumpee...but if u have the option then i guess if that's where u wanna go and for some reason they can't or aren't ready then u should make a move.

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  2. What a tough decision! As someone who was on a contingency for 8 weeks, we lived in fear of being bumped. But then, again, you know that's the risk you take. Any chance your SR could shed some light? Maybe someone with a contingency is likely to fall through or willing to take a different lot?

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  3. Amanda, what would you be sacrificing by choosing option #1 and how do they compare to the other three sites you get to choose from? Is it a deal breaker for you and your family? Could you be okay with getting everything you need in a different location with option #2 even though it is all about location location location? My spouse and I spent five months in the underwriting process and if they had decided to bump us from our chosen Lot #28, I would have been devastated, to say the least!!! As for option #3, why is option #3 an option? Does the SR know the contract will not be extended? When does their contingency expire? When they reach the deadline RH may still extend it for them. Honestly, I would only take option #3 if RYAN HOMES RELEASED THE LOT because they could not work with the future homeowners, but NOT because I asked them too.

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    1. My husband can't get past two majorly distracting aspects of the last three lots that do not have contracts. The one we picked was the only one of the three that I was okay with because the other two didn't have a grade that would work well as a backyard for the boys. I've told my husband that the two distractions don't really bother me, but that if they both him as much as they obviously do then going to the other neighborhood was fine. In fact, the other neighborhood has a couple of advantages that #1 doesn't. We don't know for sure whether there are any lots that are even contingent (this only came up this morning, so the SR is checking) and there's obviously no guarantee that those lots would even be an improvement since we haven't looked at them. The idea makes me feel squirmy, honestly. I'm not sure I could do it even if it lines up perfectly. :(

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    2. I hear you, Amanda! That is why I asked the questions! I did not get the sense that you were okay with option #3. If they release the LOT, it's cool beans!! It's free to whoever gets it first! I am just wondering if the SR has some information about the LOT that could free you up to choose the LOT the moment it is released. My SR kept us up-to-date on all the changes on the horizon until we were able to place our LOT on hold. If that does not work out, it seems like option #2 may have some extra perks and benefit you the most. Sounds like a drive by would support your decision, too.

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    3. Our SR just got back to me, he's trying to get some unreleased lots made available to us rather than going the bumping route, so that makes me feel better! We've already priced it out at neighborhood #2 and decided which lots we liked, so if we can't make it work at #1 we'll be able to move right along with #2.

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  4. You should be 100% satisfied with the house you build and the lot you build it on. It sucks for the other family but I would bump them. You aren't spending hundreds of thousands of dollars to please anyone but yourselves. They should know the dangers of being contingent. Who knows, maybe the other lots would be just fine for them. Maybe they won't consider the same things to be distracting that your husband does. What if you don't bump them and then someone else does? What if the whole deal falls through and they don't build at all? Then someone else will have the lot. This is one good situation where you really just have to think about yourself and your investment. My future neighbors were bumped and they aren't bitter about it and they actually like the lot they ended up with better than the one they originally chose.

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    1. Those are great thoughts, thank you. I especially like hearing that your neighbors are okay with having been bumped. My SR has actually gotten back to me just now to say that bumping isn't an option for us, all the remaining contracts have had their contingencies lifted. I'm glad this came up, though, because it isn't something that I've seen anyone talking about on the blogs, and it might help someone later on.

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  5. I don't want to steer you in either direction, just advise to make a choice you can live with down the road. One question: If you don't bump one of the contingents, could someone else move in and do so?

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    1. The way I understand it, if we were to bump someone, they would have a window of time to get their contingency lifted before losing the lot (that's from the one blog I've read who got bumped...I wish I remembered who that was!). So really, it's possible that we could try to bump and not succeed. The likelihood of someone else non-contingent coming in at the same time seems rather low, but it has just become a moot point anyways (see update in post). I appreciate you chiming in!

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    2. When we were under contingency, we were told that if someone tried to bump us we would have 72 hours to lift (or start the wheels moving on lifting) the contingency. For us that would have meant applying to get loan approval to carry 2 mortgages from NVR or another lender.

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    3. Okay, thanks! That matches what I read, it's good to have confirmation. How did it feel being under contingency, knowing you could be bumped? Had you considered what to do if you actually were bumped?

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