Advice needed for Purchase of new build

uropachild

Well, the first of their estate agents came round yesterday, but he wouldn't tell me what he thought the house is worth. Apparently he needs to write a 3 page report for GW detailing the market value and also the price it would need to be to sell quickly. Then once the second EA has been GW will get in touch and make an offer.

He said that he will tell us his valuation in the event that we decide to speak to them to sell our house with them if things don't go down well with GW.

Now i'm really glad i called a separate EA to come and give us a valuation just for comparison!!!

skintlass

Hi, yes the separate estate agent is a very good idea. I found valuations were suspiciously different to what the estate agents were telling me. One builder (charles church) offered me £160k for mine while GW offered £175k - same estate agents.

uropachild

Well, the estate agents have been and the valuations were pretty much consistent with what we expected from the ones we instructed. I don't know when we'll get an offer from GW, but their second EA came today and he said he would have the report to them by this afternoon.

Fingers crossed for a good offer!

skintlass

Are they aware you want a part-ex offer - pin them down on their offer of that is what you decide to go with, they tried a lot of tricks with me. If you're sure that your house will sell their easy move scheme is quite good but puts you under a lot of pressure.

uropachild

Yeah, they know we're interested in part exchanging. I know now to ask how long their offer stands too...

Feline_friendly

I am very interested in reading this thread as we are looking into buying a GW house in a new development being biult. We are going to see the show home tomorrow.

skintlass

Do you know if they'll finish the building there? They had quite a few more plots to build at the back of the development.

uropachild

I asked about that and they said that they plan to finish the development in the next couple of years. Now, with them being in trouble i know it's a risk as to whether it will get done... I guess that will have to be reflected in the price of their house. Well, i expect it to be anyway. It's part of the reason why i don't want to pay full asking price! It's a definite tangible risk.

skintlass

Yes but I assume for you like myself the problem is that with part-ex they want your house to be 30% of the price of the house they sell you which doesn't leave much room for reductions - if it helps I know that the asking price of the woodhaven was £275k originally and the Hadleigh was £240k just last summer.

uropachild

That's interesting to know, thank you.

So they've basically dropped their prices by 16% since then... If you go by the % change since peak prices that's about consistent: http://www.housepricecrash.co.uk/

So offering less than they are asking is also consistent with today's market. I am reassured now that i know i'm not being unreasonable wanting to pay less than they are asking. If house prices have dropped by 16% and people are offering less on houses in risk free, established estates, then i am within reason asking for a better deal knowing they could go bust!