New Build Valuation Lower than asking Price!

Emmzi

part rent part buy depends entirely on the scheme, the area, the percebtages. It works for some people but there can be pitfalls.

how about a week off relaxing before looking again? it sure takes it out of you!

JonathanJ

I have an (slightly) interesting update for those who are interested.
I had a voicemail from Fairview today, so I called them back to find out what they wanted.
It was the sales negotiator and to cut a long story short fed me a load of BS that I already new and wanted to know if I was sure with my decision and why I had made it.
Told him the truth, that it wasn’t worth going threw with the other lender because of all the charges and deposit and interest etc.
A bit more BS later and he is going to talk to his director to see if he can help with the extra interest, I had already been offered this at an earlier time, half the interest for three years. But he didn’t seem to be aware of this so will let it play.

The fact that I had a call back speaks volumes!

I went home and talked things threw with my wife and came up with what could be considered a halfway point.
My idea was to forget about the incentives all bar about £500 as a little towards the fees these were to cover the 5% deposit, and paying half the interest, and to accept the offer of 155K from nationwide.
These combined would effectively mean they make around an 11.5k loss on the flat instead of 20K.
This to me is “nearly” a halfway point.
I decided to call him back and put this offer on the table. Some of you may say calling him again was a bad idea but I think it showed that I although I am keen to buy the flat I am still playing hard ball. After all, I don’t want to come across as just being awkward do I.
He flat out refused it (of course) and a bit more BS later said if they sold that one for 155K they would have to sell them all at that price.:think:

So I have extended my hand to a (almost) halfway point, now I just have to wait for them to meet me there.
That really is the best I am going to be able to do as there is no way in hell I am switching to a different lender, they can take it or leave it.

Did I do the right thing?

Jonathan

superfran_uk

How do they think they will sell the other flats for anymore?

I say DON'T DO IT. You can get a nice 2 bed house instead for £175 - in parts of crawley probably a three bed. There are newbuild flats in the town centre starting MUCH lower. Tell them good luck and get away while you have your deposit!

natman

Hi there..........
Doing the right thing is very difficult to answer.
I like teh fact you are trying to be flexible and trying alternatives and not just being stubborn, on the other hand its a shame the builder does not seem to be showing you the same respect.

People on here including me to be honest- look at things quite frankly sometimes -i.e if the valuation says £155, then £155 is the maximum what you have to pay - which is understandable.

I bought a new car 2 years ago paying £13,000, its now worth about £6000, so common sense tells us never ever to buy a new car, but it will still happen. Its the same with new year sales, You buy something in the sale in january at half the price it was in december - but people still do it.

Take your actual house out of the equation, meeting someone half way is always a positive move, but hey dont be too nice here!!! its a business transaction too, the builder has to make money, you have to have a product thats worth the money your investing.

Let them do the chasing!!!!
Keep us posted, i for one m very interested!!!!
Good luck and take care

JanCee

The flat has been valued at £155k, that is all it is worth. I am sure if you stick to your guns you will eventually get it at that price.

lynzpower

Johnathan

I agree with the others. Ive seen really spacious lookign houses for way under 155 in crawley on rightmove with GARDENS and PARKING and all those things that are bloody useful when you live in a new build flat ( I sold a new build flat a few years ago)

Would you be able to show s alink to the development so we can see if its really as nice as what you are suggesting it is. Seems crazy to me to buy as new build flat when you could buy a family home for substantially less.

I know this is a rather personal question but do you intend to have kids in the next few years? Does the wife? Rest assured the minute she gets pregnant the first thing she will do is say you guys need a garden.....

JonathanJ

I should have been a little more specific earlier on in a thread, still, better late than never.
We are stuck with new build as we only have about 6.5k for a deposit, I’m not going to get ANYTHING “second hand” without a larger deposit since the mortgage deals took a turn for the worse.
This flat is a little special for a few reasons, it is ground floor, it has its own front door (no communal entrance) it has its own garden, plus a huge communal garden just over a fence and it is somewhat bigger than most of the other flats. Flats like this are a little hard to come by.
Also we already have two kids, a two year old boy and a 2 month old girl.

The surveyors for Halifax and Principality have been valuing the flats at 175K (so they say), and the land registry shows they have been selling for around the 165 mark with the odd one at 150, but it is hard to tell the 1beds from the 2beds. But this is for three months ago and not very many of them, only five in March, six in February and three in January. A far cry from the 8 to 10 a week previously claimed!

The evidence would suggest they could sell the flat at the prise they are asking, if they can just find a buyer!
So what the deal really hangs on is how badly they need the sale, evidence would also suggest they are not selling quite as many as they need to be.

I tried to post a link but it wouldn’t let me as I am still a new user, is there a mod out there who would be so kind as to fix that for me?

Jonathan

SouthCoast

This is a 2 bed flat in Crawley. With thanks to Property-Bee.

History



dateevent15 December 2008

• Price changed: from '£165,000' to '£145,000'

16 October 2008

• Price changed: from '£170,000' to '£165,000'

14 October 2008

• Initial entry found.

http://www.rightmove.co.uk/property-for-sale/new-homes/property-11198823.html?locationIdentifier=REGION%5E378&maxPrice=150000&displayPropertyType=flats&oldDisplayPropertyType=flats&pageNumber=2&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DREGION%255E378%26maxPrice%3D150000%26displayPropertyType%3Dflats%26oldDisplayPropertyType%3Dflats%26index%3D10

JonathanJ

I really appreciate your help SouthCoast.
It is at a much more reasonable price, but it doesn’t have most of the other perks we found in the other one, and the crippling factor being we cant use the Flying Start scheme to buy it, so instead of needing a 5% deposit on 75% of the value we would need 10% for the full value, which we cant afford. Plus we will pay threw the nose to get a 90% mortgage.
Although it was all the little things like the garden and own front door that made us go for the one we did, altogether they sure as hell aren’t worth 30K!
Even though this one may not be what we were after, it will certainly be a great bargaining tool as it proves that their flats are overvalued!

plp76

[QUOTE=
At the end of the day I am not afraid to walk away, rather that than loose 20 grand! If I do I wont even loose my £1000 holding deposit because I refused to give it to them unless they guarantied I would get it back if I couldn’t get a mortgage.

…[/QUOTE]

Hi, do you mind me asking how they guaranteed you would get your £1000 deposit back?

We recently went through the same process at Pembroke Park, unfortunately we were declined for a mortgage and when we asked for our £1000 deposit back we were told we weren't eligible for it. Prior to this we had been told on at least 5 occassions that the deposit was fully refundable if we weren't successful in obtaining a mortgage.

I have written, emailed and called Fairview homes and get no response at all. I recently contacted the Consumer Watchdog who suggested that if I can find a few other people who were also told the same thing that we could file a case against Fairview.

Any info you can provide regarding your situation and promises Fairview made regarding refunding your deposit could be very useful.

Regards

Phil