How much is the average deposit on a new home?

MadelinesMum

Hi franklee (sorry too young to quote u yet, lol). When I signed the reservation document it had a clause where you had to complete by a certain date. I was hoping that my sale would have completed but it's not yet. The main reason I am worried about losing the new property is because I got a good deal on it - all the 4 and 5 bedrooms on the estate are now sold and the 3 bedrooms are now selling for more than I bought a 4 bed for.

I fear when I don't pay the deposit on time they'll just sell it to someone else. They won't care because they'll sell it for more than I'm paying.

Caz

franklee

Hi Caz, It's exchange of contracts you need to be concerned about. Can you confirm that you won't exchange contracts on the purchase before you have exchanged on the sale. Only your posts read to me like you are going to make such a mistake, Please talk to your solicitor and make sure you really understand the problems you may be facing.

V123_2

In this current economic climate I would be very wary of giving such a large deposit for a house that isn't built - no matter who the company are. Many companies are finding it difficult to finance projects and maybe this is a way for them to help finance the project - or other projects they have ongoing, but if your house isn't built and anything happens to the company, you are likely to lose you money altogether. I would do as a previous person said - don't give them the deposit and walk away if necessary.

V123_2

Oh just re-read your post - missed the part where you say house will be completed in a few weeks - well, that changes it all. Not unreasonable then for the deposit to be paid, but I am sure they can wait as long as you prove your house sale is going through somehow.

franklee

V123 wrote: »

Oh just re-read your post - missed the part where you say house will be completed in a few weeks - well, that changes it all. Not unreasonable then for the deposit to be paid, but I am sure they can wait as long as you prove your house sale is going through somehow.

Yeah well in that first post the OP also says Also, the house hasn't even been built yet

MadelinesMum

Hi thanks for all your replies. Well, the date I had to pay the deposit by has been and gone and Abbey aren't concerned because my solicitor has assured them my house sale is going to complete soon. I am now trying to negotiate a lower deposit.

I am abit concerned about paying a large deposit when the house isn't even built but it is the last few roads/cul-de-sacs in a large-ish estate so unless Abbey goes belly up then, fingers crossed, it'll be ok. (You'll all be thinking of me if you see it on the news, lol).
Thanks again
Caz x