Fixed price off plan house - should we renegotiate price

lindsayw_3

Hi,
I am new to the forum and am looking for advice.
We have a fixed price offer from a local developer for an off plan house, for £290,000. However, this verbal offer was made over 3 months ago and there has been no deposit paid by us.
As the market is so unstable, we now dont feel that this is a good offer and we are not willing to pay that much - another local developed is reducing his houses by 15-20K, so we want to renegotiate. What would be a reasonable price now? We are not in a chain, we have a 40% deposit and can move quickly.
Thanks to anyone who can advise

dwsjarcmcd

You are in control of this as a buyer. Personally I would look to reduce this price by upwards of 20%, or around £60k. If the developer doesn't want to play, walk away. I would have other concerns about buying off plan right now
- Does the developer have the resources to actually build the house? If local, don't be surprised if they have cashflow problems. If national ditto!!

- If you do get it for a reduced price will the developer cut costs/standards/finish to compensate? Almost certainly

David

poppysarah

Make sure all your legal advice is truly independent.

And offer very low.

PasturesNew

Why are you buying off plan anyway?
Many developers are not building, or are stopping half way through.
This is also a risk with buying off plan.

Why can't you buy something that's built?

lindsayw_3

Thanks for the replies,
20% seems very high, but then again i suppose, if you dont ask you dont get.
We are prepared to walk away, but with heavy hearts as the spec is the best we have seen; and yes the spec would suffer if the price came down.
Thanks again for the replies....we are meeting the developer tonight, so heres hoping!

lindsayw_3

We have got many reasons for buying new -
Room sizes - are excellent - king size beds can be put comfortably in every bedroom.
Open plan kitchen/dining room - it was exactly what we wanted
Standard of spec - very very high, solid oak floors, doors etc, very high quality kitchens - (i know, as i had previously put the same make of kitchen in our old house) and bathrooms.
Plot size - massive for the area - South Aberdeenshire.

We spent a long time looking for houses, most of what we had seen had tiny rooms - for bedroom read boxroom etc. Our previous house was bought brand new and it was extended and improved over the years, hence an excellent sale value, but we really dont want to buy a second best choice that we would have to do work on sooner rather than later.
Buying new or second hand houses is personal choice, a bit like buying new or used cars.

ruggedtoast

For the love of Sweet Pete and Merciful Mike.

DONT BUY OFFPLAN PROPERTIES NOW.

lindsayw_3

OK - really must be having a dim moment, apart from whats been said already, why the vehement advice against buying off plan?

dwsjarcmcd

Lindsayw, it's your money and your choice. Prices continue to fall and you should protect yourself but at the end of the day, it is up to you. But in general, offer lower and get assurances that the job will be completed. As has been mentioned, take legal advice before you totally commit.

dwsjarcmcd

lindsayw wrote: »

OK - really must be having a dim moment, apart from whats been said already, why the vehement advice against buying off plan?

because you can't guarentee the house will be built!!

lindsayw_3

Sorry, yes of course, you're right, was being somewhat dim....(just finished 5 night shifts, dim is normal!!)
Thanks to everyone that replied, its been very helpful