so who should bear the risk of the market? assuming a 6 month period for the home construction. if the buyer can not qualify 6 month after signing, the builder is stuck with an empty spec home. the builder lost 6 month of opportunity to find another buyer for the home. in addition, with the example of the guy that lost his $100k deposit on a home that was $2.2 mil but was worth $1.4 mil when the home was completed, seem to me the $100k loss was a much better outcome vs being underwater by $800k.
