New Build purchase issue

nervousftb_3

Blueforever wrote: »

I agree with that completely which is why I'm so annoyed at the home builder (wainhomes) who I feel:

-Exagerrated the asking price making a mortgage impossible
-Failed to offer any sort of resolution to this issue
-then held onto my "reservation fee"

I even used their own nominated mortgage provider.

I was wondering if anyone had similar experiences or any idea on how to resolve the situation

sorry if this sounds rude (it isn't meant that way) but surely it is a case of buyer beware? presumably you agreed to pay a certain price for the house, but now the mortgage company is valuing below that you are blaming the builder? the builder can ask whatever they like for the house, if you agree to pay that then the onus lies on you to ensure the house is actually worth it. the builder has no responsibility to ensure that the price is reasonable, or to help you resolve the issue. the moral here is new builds are highly over-exaggerated in price, so bargain with the builders BEFORE you pay any reservation fees.

Yakubu22

I've been looking at some Wainhomes new builds near me (South Warrington). They are grossly over priced. For example a 4 Bed Semi priced at 270k when you can get an older (with bigger gardens and better location) 4 bed for 180k+.
Your story does make me more apprehensive about even giving them a ring to have a look round one of their developments.

terrierlady

Most new homes developers I work freelance for, DO return fees but did you use the FA for the development as they are used to down valuations on new builds, most valuers now value at second hand prices as they have been instructed to do by the big building soc, so what is the problem who have you spoken to have you stopped at the sales neg or gone to the sales manager then Director than even higher, customer care starts at pre reservation stage so make sure you start yelling and very loudly.
We do get valuations done at the start of the development and when the valuer comes out are able to show comparables to them.

Blueforever

terrierlady wrote: »

Most new homes developers I work freelance for, DO return fees but did you use the FA for the development as they are used to down valuations on new builds, most valuers now value at second hand prices as they have been instructed to do by the big building soc, so what is the problem who have you spoken to have you stopped at the sales neg or gone to the sales manager then Director than even higher, customer care starts at pre reservation stage so make sure you start yelling and very loudly.
We do get valuations done at the start of the development and when the valuer comes out are able to show comparables to them.

I did use their own financial advisor - he recommended the Nationwide "as they understood the new build market"

I'd already got the price down substantially (10%) but for the bank to value it at another 20% lower was a huge shock.

I've taken the complaint to director level. They do not care. They even came out with a classic line of "if the house had been priced at £175k then I wouldn't have even throught of buying it originally" They just kept saying there would need to be a new survey.

They have point blank refused to refund the reservation fee's - despite the fact they put the home back on the market before my reservation period was up!

I've even sent a special delivery letter to the owner of Wain homes (who lives in Jersey!) and no response.

Their response now is that they will see me in court!

dodgy

Rollerball wrote: »

The bank is correct. That's the problem with new builds, they're always grossly overpriced.

Well, I'm in the final stages of purchasing a new build and my valuation was the price I'm paying - so it can happen, although obviously and unfortunately not to the OP.

ILW

Maybe I am being a bit thick here, but why put a deposit down before getting a valuation? Seems a bit ar5e about face to me.

Blueforever

They call it a "reservation fee" rather than a deposit. This then seems to give them the right to walk away with it when you cannot get a bank to agree to a mortgage

withabix

Blueforever wrote: »

I did use their own financial advisor - he recommended the Nationwide "as they understood the new build market"

He was spot on! They weren't lying to you.

You are Part Exchanging though - probably getting 20-30% more for your house than current market value anyway.

Smoke and mirrors and that's where your missing value has gone.

The only people who win in part exchange deals are the builders.

A non-part exchange buyer will probably get a 20% discount on the price you are paying.

terrierlady

whilst i agree you dont get full market value you get an agreed price on part exchange, you also stay in yours until the new ones ready, developers dont buy homes they sell them so if you beleive your being short changed on part exchange try the easy mover or market mover schemes where the builders pays your estate agents fees, you will soon see that the market is slow offers are far and few between so sometimes it pays to take a lower offer but at the end of the day we all value things differant and maybe its worth a call to your building society underwriter plus what the heck is the nominated FA doing about this down value?

Blueforever

When the sorry saga was coming to an end (I was only given 1 month from the offer to complete) I offered to pay the price of the valuation of the property (take the Nationwide mortgage of £175k) without the part ex and they refused. So the part-ex didn't really come into it.

The fact is that they are in denial about their house prices having fallen so much. Their customer service throughout has been dreadful - it was left to the financial advisor to pass the bad news onto me. The is a built property (a former show home) sitting their empty.

And for all my efforts they just keep the reservation fee. That is what bothers me - they have cost me £1000 - and even re-marketed the house during the 1 month reservation period for which I had the pleasure of paying them £500.