New Build - Next door was sold cheaper

Susy08

(First post/ First Time Buyer)

We've just found our ideal home on a new development and even managed to get a mortgage in principle, however today when I was on the developers website I found that the hosue (which has sold) was 'plot of the week' and sold for £5,000 less than the one we've looked at...

Our's would be the mid terrace and the one sold for 5k less is an end terrace - the developers won't budge at the moment and have taken our request for a reduction to head office, but doubt that they will approve the decrease.

I'm guessing they've made their target for the year and therefore won't budge - Has anyone come across this before/ can offer advice?

Any help greatly appreciated

Fire_Fox

If you assume they won't budge then of course the experienced salesperson will "ask head office". Don't be apologetic or ask nicely for a reduction, tell them in writing that this is your revised offer based on the sale price of next door no negotiating. They know you have the money so they will pull out all the stops to screw it out of you.

G_M

have taken our request for a reduction to head office, but doubt that they will approve the decrease.

Of course they will scare you into thinking 'head office' will not decrease. They want to scare you into paying the higher price!

Don't!

Susy08

Any suggestions of to do?

ILW

Depends.
If they have another buyer lined up, if so pay up or walk away.

If you buy you can spend years and years knowing that your neighbour bought a better house for less money.

Susy08

no other buyer lined up at all - they even agreed to hold the place for us while they take it to their MD (apparently the Sales Director has declined the lower offer)

Raggie

sorry confused....

the developer has sold prices on their website..

are you sure its not their initial listing price....

have you checked on one of the numerous websites that list actual sold prices?

it could be worse than the £5k your thinking....

I know we have paid significantly less than one of our neighbours based on LR records but that both properties were listed at the same price.

G_M

Susy08 wrote: »

Any suggestions of to do?

Err.. read the responses to your post. There are suggestions there!

bitsandpieces

Also, any future buyers of the house you're looking at will be easily able to learn the price of the end terrace. If it sold for £5k less than yours, they will likely focus on the lower price - new builds often go down in value after purchase, and this means that yours could go down more than usual.

If the £5k lower price is on the developer's site, are you sure it's not the asking price rather than sold price (which could be lower :eek:)

Richard_Webster

Find a similar house nearby that is 10-20 years old and tell the sales people you will pay £5K more than that older house because that is all their house is worth in the open market.

GDB2222

A mortgage in principle is obviously not the same as a mortgage offer. The surveyor appointed by the lender will value your mid-terrace at less than the end-terrace, so he'll probably value yours at £10k less than your previous offer. That means your mortgage offer will be restricted. So, unless you can make up the difference, you simply won't be able to go ahead, however much you want to, and any fees you pay will be lost. It may be better to walk away now and write off whatever reservation fees you have paid.