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Making an offer on 'off plan' new build..?

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Comments

  • Idiophreak
    Idiophreak Posts: 12,024 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    Could there not be a problem in that the BS may value below your agreed price when the property is finished and you will have to find another 10 or 20 thousand for the diffference ar risk being sued by the builder to complete?

    Downvaluation is always a risk, whenever you buy with a mortgage.

    Sure, it's heightened buying off plan, but OP has other properties on the development to use as a guide and I guess they just have to cross their fingers that the market doesn't drop 10% in the next six months (which, of course, according to some memebers of these boards it's *certain* to :rolleyes:)
  • ILW
    ILW Posts: 18,333 Forumite
    Idiophreak wrote: »
    Downvaluation is always a risk, whenever you buy with a mortgage.

    :rolleyes:)
    The difference is that with new build you are expected to sign a contract and pay a deposit BEFORE the building society valuation.
  • Idiophreak
    Idiophreak Posts: 12,024 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    The difference is that with new build you are expected to sign a contract and pay a deposit BEFORE the building society valuation.

    Yeah. So you'd better be pretty confident the property's worth (or more to the point *going to be worth*) your offer, hadn't you.

    Nobody has a crystal ball, so all you can do is get the place as cheap as you can to hedge your bets...
  • ILW
    ILW Posts: 18,333 Forumite
    Idiophreak wrote: »
    Yeah. So you'd better be pretty confident the property's worth (or more to the point *going to be worth*) your offer, hadn't you.

    Nobody has a crystal ball, so all you can do is get the place as cheap as you can to hedge your bets...

    Or go for one thats already built.
  • Idiophreak
    Idiophreak Posts: 12,024 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    Or go for one thats already built.

    ...that may be downvalued by the lender anyway..
  • ILW
    ILW Posts: 18,333 Forumite
    Idiophreak wrote: »
    ...that may be downvalued by the lender anyway..

    But at least you would know that before commiting to a contract.
  • Idiophreak
    Idiophreak Posts: 12,024 Forumite
    10,000 Posts Combo Breaker
    So you'd get a mortgage valuation done before putting in an offer?
  • ILW
    ILW Posts: 18,333 Forumite
    Idiophreak wrote: »
    So you'd get a mortgage valuation done before putting in an offer?
    Putting in an offer does not involve signing a contract or paying a deposit.
  • purplebuzz
    purplebuzz Posts: 160 Forumite
    Part of the Furniture Combo Breaker
    ILW wrote: »
    Putting in an offer does not involve signing a contract or paying a deposit.


    However, don't you have to pay a non-refundable reservation fee for a new build, up to about a £1000 depending on the development.
  • ILW
    ILW Posts: 18,333 Forumite
    purplebuzz wrote: »
    However, don't you have to pay a non-refundable reservation fee for a new build, up to about a £1000 depending on the development.
    Exactly.
    I cannot see nay reason to buy off plan unless you like a gamble and can afford to lose.
    The OPs post suggests they are on a pretty tight budget.
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