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Dear Steve,
My fiancée and I have been shopping for new homes in South Florida and notice a trend where builders offer
"special" sales prices on inventory homes, only to tell us when we arrive with checkbook in hand that "the price was
a mistake on the Web site" or "we just called corporate and its turns out we can't sell it for that price."
On one occasion, a specific model and street address were noted for one of these discount "deals." When
we got there, they hid behind their disclaimer. Is there any way to force them to make good on their offers? In this
market, where builders face stagnant inventory, I was very surprised that this tactic continues.
-- Chris
Dear Chris,
Actually, those bloated inventories are exactly why more builders are running these bait-and-switch schemes. Despair
begets deceit.
Of course, bait-and-switch is not limited to home sales. We see it in disciplines ranging from car
dealerships to carpet-cleaning to the mortgage industry to national politics, to name just a few. But with homes,
those fake promises often add up to tens of thousands of dollars and are apparently quite effective at luring unwitting
buyers: "Savings up to $75,000! This weekend only! Wow!"
When you went to that one specific South Florida subdivision, I see you were quoted that trusty old Web
site disclaimer, which probably said something like "prices may change without notice."
But then you were probably graciously offered "an even nicer unit at a better location" that was nowhere
near that bait price. If you balked, you were probably told, "Well, let's work on the numbers and see what we can do."
But those numbers never approached the price of that "loss leader" home that was never really for sale, did they?
Other examples of real estate bait-and-switch
are all too common, such as new condos that are
posted on the Multiple Listing Service for an
eye-opening, cheap price by an agent, only for
buyers who arrive at the sales office precisely
when it opens to find they have already somehow
been "sold" -- even though they were never listed
as "pending" or "STI," short for "subject
to inspection," and may remain on the listing
service for several more weeks.
Then there are those salespeople who conveniently "forget" to tell potential buyers as they sign on the
dotted lines that the components and systems they viewed in the model home won't be coming with their purchase package
of an "identical home."
I am not alone in noting that the largely self-regulated real estate industry is in dire need of ethics
reform, thanks to a small percentage of bad eggs that really stink things up for the many good ones. Of course, lots of
these "site reps" at sales venues are not even Realtors and technically aren't accountable for codes of conduct at all.
To answer your question, there's a slim chance you could force the builder to sell at advertised prices,
but it might take a court battle that could ultimately prove expensive and futile. However, feel free to contact Florida
Attorney General Bill McCollum's office by e-mail at ag.mccollum@myfloridalegal.com, or call its citizens services office at (850) 414-3990 or Florida toll-free number of (866) 966-7226
to file a complaint.
For other readers, go to naag.org
for a full state-by-state contact list of attorneys general.
Remember, "too good to be true" is usually ... well, you know.
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