Do we have any legal recourse againstour builder if the new homes that they are building are deeply discounted thus devaluing our home?

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Do we have any legal recourse againstour builder if the new homes that they are building are deeply discounted thus devaluing our home?

We had a house built 18 months ago. The owner of the construction company has been offering houses here almost 2 1/2 years now and has managed to build only 15 homes. A sign recently went up saying they are now offering homes that start at $70K less than what we’ve paid for our homes. These new homes are less than 100 yards away which, we think, will make our property value plummet even more than it has since we bought the house. We would like to know what our options are as it now looks like we are about to be saddled with worthless property and a huge debt.

Asked on August 1, 2011 California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You have no legal recourse against the developer and builder of your home if the next phase in the development have homes selling for significantly less than what you bought your for. Unfortunately, the reduced prices for new construction are the sign of the poor economic times in the real estate market.

The decline in your home's value is not the result of problems with the home from a structural standpoint. Rather economic conditions have devalued your home. In California, if a home's decline in value is due solely to economic conditions the property owner has no claims against a developer , builder or former owner for damages.

If you can afford the payments on your home, continue making them and hope that real property values in California stabilize and increase.


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