Bought new build, finished in summer 09, can we renegotiate as prices slide further ?

geoffky

oh boy you really have messed up with this one.....god help you

at least at your age (24) you will have time to recover....you are playing Russian roulette and four barrels are loaded against you.....i think you are crazy i really do..

Trollfever

Some posters on this forum have experienced previous property crashes.

Nobody posting here has ever experienced a global financial meltdown on the current scale.

.

GDB2222

geoffky wrote: »

oh boy you really have messed up with this one.....god help you

at least at your age (24) you will have time to recover....you are playing Russian roulette and four barrels are loaded against you.....i think you are crazy i really do..

That's unfair. he hasn't messed up. He is asking advice about what to do, which is surely sensible? As far as I can see, all he is committed to at this stage is a £500 reservation fee, which he can afford to lose if necessary or may even be able to get back from the builders.

Doozergirl

Amino wrote: »

And finally im not sure wether I should actually factor in the fact that they are paying the stamp duty from their own pocket so that £295,000 in reality from our perspective is £286,150 ??

It would be £295,000 instead of £303,850. They're not giving you the stamp duty back, you still have to come up with £295,000.

It saves you a little but in terms of resale values it means very little as your buyer will have to pay the stamp duty again.

I really think you could have negotiated harder than you did. Three years ago in the slowdown we negotiated a new build down from £299,950 to £249,000! I'd be looking for that sort of price now. It took a while, but you have a while.

I also don't believe for a second that Bryant is turning out the cheapest four bed in town. They don't offer value for money, let alone good value for money. Go and view some second hand houses and be absolutely sure.

tomstickland

Amino wrote: »

I understand the risk and it is treading on already very thin ice, the problem is that we are not going to find another 4 bed property in the area for that price, looking rightmove the next "non new" house in the area is on at £339,995



as a rule of thumb I would agree with you, but there's little room for options, thanks for that tip anyhow, I will contact the sales director to find out the exact date or perhaps have this written in when we exchange as some clause !?

Personally I'd try to drag everything out as long as possibe - who knows what's going to happen in the next year, but I don't see any "green shoots". There's still a lot of dominoes waiting to fall.

What if in 12 months time houses are 30% cheaper?

Amino

I have only commited £1000 as a reservation fee, I am happy to live losing that in the grand scheme of things if I can make a bigger saving down the line, I think bottom line is to not exchange for as long as possible and see how things carry on in the Market and then speak to them again, if it's not good news then call it quits there.

I've hardly signed my life away for god's sake, having not exchanged the point of this was for it to be constructive on how to proceed from their

But thanks for all the posts so far that cover things I prob missed

Amino

Dupe post.....

Amino

Ok well its been a while since I have been on here....but since then we have had some developments..

We finally completed on the sale of our house about 3 weeks ago after selling it back in Sept 08 (4months waiting!!) this was a huge releif to us as the prices were still sliding in road and about 5 or 6 other identical (internally) houses popped up for sale too, first home was ex local authority as we were only full time students when we bought about 3 and a half years ago

So onto the new build purchase..

Well as you know may/may not know we did have a property reserved with Wimpey @ 295K inc Stamp which is due to be finished in May 09...

But Wimpey deferred a debt convenant test in Dec for a few months so they could renegotiate their credit agreements which kind of worried me somewhat, so I instructed our solicitor to withold the deposit from the builder as I did not want to proceed, this did not go down too well with the sales person in the office who was ranting to a degree with me to which I said sorry, its not your money so you would not understand..

So off over the road we went to Persimmon who are in the same boat but in a better financial position..

We saw a couple of finished houses ready to go one similar size 4 bed place but with a garage, study and two ensuite rooms to boot arranged over 3 floors and a separate shower/bath in the family bathroom, this one was about 500 sq ft bigger than the one we originally opted for and with a MUCH bigger garden..

We also saw a 5 bed place right next door which I also liked alot and was interested in but the other half was not soo keen on..

The 4 bed semi was listed at £350K with them being able to agree 330K to any old tom,!!!!!! and Harry who walked in..how did we know..because when we went in I was talking to the sales rep and the other half was standing next to me by the desk which had a sheet of paper listing the house names, prices and what the sales people could directly accept offers on in terms of ££

The 5 bed was listed at 390K with offers accepted at 350K..

Armed with this info, I instructed the mrs to see how low she could get the 4 bed for while I tried to haggle the 5 bed one (they didnt know me by name at this point)

She made an offer of 250K on the 4 bed place (100K off book price and 80K off sales price in the office)

while I made an offer of 300K on the 5 bed place listed at 390K, 350K being what they could accept on the spot..

Well it didnt take them long to cotton on we were together and told the other half there was no way they could accept 300K on the 5 bed place which put an end to that..

However wthey were quite receptive to offers on the 4 bed place but tried to argue the fact we had offered 295K accross the road for a smaller place..

Missus argued back that the offer was made back in Oct 08 and that the "markets had deteriorated" and that the house they were selling simply was not worth 300K and that we had sold and had a mortgage offer ready to go..

So after a few phonecalls back and forth they accepted an offer on the place of £275,000!! with them paying 2% Stamp duty and and us paying 1% and they threw in £200 for legals, every penny counts! :T this represents a 21% reduction in list price to offer accepted

This saved us 20K in what we offered on the other place, a HUGE amount really, we decided though to take the full amount we originally requested so that we can do all the work needed to the house in one go.

What annoyed me was the lender said I had to go on a "new" tracker product even though I was just changing the address. This meant I lost my 1.25% above base tracker (full rate cuts passed on) and was put on a 2.79% above base tracker...

The good news is that when the lender valued the property, they valued it at £349,999!!! I guess this means nothing in a credit crunch but should stand us in good stead for the future once the market begins to recover

So I pick up the keys on Wednesday chuffed to bits with our new "home" which we will be in for the next ten years plus

fitcrazy

Amino wrote: »

Hi

Myself and partner agreed to buy a Bryant home a couple of weeks ago, now the plot we agreed on wont be finished until next summer, so as prices continue to slide over the next 12 months, can we renegotiate the price even though the paid the reservation fee with the agreed sale price ?

eco's are

4 bedroom end of terrace house with a double car port a utility room, 3 reception rooms, 3 double bedrooms and a single bedroom

the property was listed at £330,000, we made an offer of £295,000 inclusive of them paying the stam duty @ 3% which after a long wait they agreed to.

This represents a reduction of just over 15%. I had a look on propertysnake to see what was happening in the area and other similar properties look like they have so far slid about 9% so I think we got a decent deal but I dont want to pay over the odds if they start accepting even lower offers...

Are you part exchanging? If you are i wouldnt worry too much. We agreed a deal last july and still haven't exchanged contracts!!!! it took them 5 months to send contracts out and then they moved the goal post. I very much doubt they will send contracts out within 28 days (just like we were told). Go careful though, with our deal it was them that changed it and we've now lost out!!! good luck:)

Amino

fitcrazy wrote: »

Are you part exchanging? If you are i wouldnt worry too much. We agreed a deal last july and still haven't exchanged contracts!!!! it took them 5 months to send contracts out and then they moved the goal post. I very much doubt they will send contracts out within 28 days (just like we were told). Go careful though, with our deal it was them that changed it and we've now lost out!!! good luck:)

No, we sold our house within 24 hours (second person to view) back in Sept 08, however we only completed about 2 weeks ago:eek:

Sounds like your having a mare, with the Wimpey we were going to get they were fine with us putting a long stop clause into the contract that way if they moved the goal posts we could tear the contract up and walk away, gladly the new one by Persimmon we bought is complete and we are getting keys tomorrow :cool: