New build - have I offered too much?

[Deleted User]

Went to a new build development of 4 and 5 bed houses in a good part of the city a week back. Supposedly this massive development will finish in 2018. Bryant, Persimmon and Charles Church are on site. I didn't see any building activity when I went. A few houses are finished to a weatherproof stage - supposedly so that buyers can specify the interiors (bit doubtful about that - I suspect that it's because they're not shifting at the moment) and I've found about 15 sales over the last year or so with average selling price of well above 400k - but could be larger style properties. The lowest previous selling price is 335k in this development.

Saw a 5 bed house I liked which was on at 385k with 10% off and stamp duty already offered bringing it down to about 345k. It's probably been on the market for 5 or 6 months. I was quoted 300k for a cash sale and negotiated quite a few incentives (them still paying stamp duty, dishwasher, washing machine, granite worktop, flooring etc) but didn't shift the price down on the day so I made a reservation. I'm now thinking of going back next week and asking for a decent reduction. I know they'll close for Christmas soon and guess they wouldn't want to risk losing a sale at the end of the year. Also slightly concerned about the market but really want to buy and move soon.

Any thoughts anyone?

puddy

doesnt the fact that the whole site wont be finished for at least another 10 years (unlikely to stick to their original deadline), put you off?
what about if the whole thing goes down the pan and you end up buying a house in the middle of a building site, or they put a great big shopping centre in the middle of it , or casino or other chavvy type extravaganza?

not trying to put you off but this isnt a block of 6 properties in an already residential positiion by the sound of it, its a whole new set up?

put some links on here to the development and the houses, lets see it

Cat695

so is this house you want actually built yet??

If not don't touch it with a barge pole...you just have to read on here the nightmares that people are having with developers who still haven't built the house months after the agreed completion date!!

monkeymaster

jenner wrote: »

doesnt the fact that the whole site wont be finished for at least another 10 years (unlikely to stick to their original deadline), put you off?
what about if the whole thing goes down the pan and you end up buying a house in the middle of a building site, or they put a great big shopping centre in the middle of it , or casino or other chavvy type extravaganza?

not trying to put you off but this isnt a block of 6 properties in an already residential positiion by the sound of it, its a whole new set up?

put some links on here to the development and the houses, lets see it

Exactly! One or more of the builders could go bust. Building could be delayed for years until they think the market is recovering sufficiently to better their margins. The site could be abandoned altogether as has happened in other places and your house may not be built or perhaps worse you could end up living on a building site. I'd be very wary of this.

[Deleted User]

Wow lots of replies already. The houses are basically finished externally but need plastering, internal walls etc done - I'm told this will take about three months or so once each is bought. I wouldn't dream of buying a plot in a less finished stage at the moment - doubly so if I was considering a Taylor Wimpey home, at least until January. The part of the development I'm looking at is built up already so any active (or inactive) building site is a few hundred metres away. Here's some links to the development on the three builders' sites: Persimmon, Charles Church, and Bryant.

puddy

i see, so what bits are going to take until 2018?

also, where are the schools and 'communal services' located in relation to the property you have your eyes on?

PasturesNew

There was a bloke on TV the other day who had bought a new house ... and all around him they just closed down the building site. He's getting trouble with kids and vandalism as a derelict building site is fun for them ... and he's right next door to it.

Most sites are closing down, it sounds like yours is 99% shut down.

[Deleted User]

Jenner - Basically it's all part of Newcastle Great Park. They've finished building to the east of the A1 where lots of unfortunate people bought at the height of the bubble. They're now building to the west. Have a look a this - it might explain it better. Basically the area above Kingston Park Road on that map and below that east-west row of hedges is Greenside. This is half-finished with the southern bit mostly complete from what I saw. The country park will encircle the development to the north and west and the rest of the houses, shopping complex, primary school etc will be built beyond that, to the north up to the circular office complex you can see just off the top of that map view to the north of Bruton Lane. That's the part that will take the next 10 years - or much more I'd guess. Personally, as long as the Greenside bit is finished I'd be happy.

I was told in cachement area for Gosforth schools which are good. Out of town retail park including a large Tesco 1 mile down the road, with a metro station adjacent to it. Would take about 15-20 minutes to centre of Newcastle by bus (from stop opposite development) or metro.

puddy

well i see what you mean, its huge enough maybe to keep you safe from bits that might not be done quickly or properly, BUT although you might buy in greenside and lets say greenside is completed properly and well enough, if other bits are run down, collapse because BTLetters couldnt keep up repayments and the places got repossessed etc etc, it will affect the reputation and future price of the whole development, greenside included (although i just started a thread about people only considering the future price of properties when they buy a home, so im being hypocritical!)

[Deleted User]

No probs Jenner. It must be depressing to see all these questions about house prices but as others have pointed out it's a huge and infrequent purchase. For my part I just don't know how long I'll be staying there before I have to sell up (eg two years or five or even ten or more) so I need to pay much more attention to securing a good price. But OTOH I do want a home too and I'd rather lose a bit of money and get a comfy home for the next few years than break even and live in a house I didn't like.

Going by the mainly negative sentiment about the viability of new builds that I'm picking up here, I'll take another very close look around the development and then if I decide to go ahead, ask for a very significant reduction - in the order of 30-40K. I figure there can't be too many cash buyers just now willing to move quickly and 300K was on the table without any negotiation on my part - all I negotiated were the extras and stamp duty. Will let you all know what happens when things pan out.

puddy

wouldnt you rather wait until it is actually finished, it will give you more time to see what else is happening on the development and the prices will have dropped more
why do you want to reserve it now, surely its a buyers market even if it is prestigious??