New Build - Next door was sold cheaper

free2b_2

We tried to buy a new build 4 months ago. The list price was £160,000 and we agreed £140,000 and were happy and paid down £500. The mortgage valuation came in at £120,000! They suggested that they would lend us the difference as an interest free lone, but we declined. They would not drop the price.

Since then an identical house on that estate was advertised for £115,000 via a private seller.

The company refunded our £500 deposit/fee (which we believed was none refundable) and I am convinced this is because we were nice/polite about the whole thing, so pull out and be nice about it and they may give you your money back!

kriss_boy

I just cannot understand why people frequently ask these questions.

Surely as a buyer you assess the properties worth and base your offer on that. Whether another buyer managed to barter a better price or not is besides the point.

Is this more previlent in England? Offers frequently being withdrawn.

jamief

kriss_boy wrote: »

I just cannot understand why people frequently ask these questions.

Surely as a buyer you assess the properties worth and base your offer on that. Whether another buyer managed to barter a better price or not is besides the point.

Is this more previlent in England? Offers frequently being withdrawn.

You assess what you think the property is worth (i.e. how much of a discount you think you can get).

If you later find out that you could've got more of a discount, why would you continue to overpay?

kriss_boy

jamief wrote: »

You assess what you think the property is worth (i.e. how much of a discount you think you can get).

If you later find out that you could've got more of a discount, why would you continue to overpay?

'Could have'?, but you couldnt.

How would you feel if you were in the process of selling your house but then a neighbour puts theirs up for 5K less. How would you feel if the buyers suddenly demanded yours cheaper.

I just dont agree with that attitude.

GDB2222

kriss_boy wrote: »

Surely as a buyer you assess the properties worth and base your offer on that. Whether another buyer managed to barter a better price or not is besides the point.

That's fine if you are a 100% cash buyer. As soon as you want to borrow money, the price at which other properties have sold becomes of paramount importance, as your lender will base the amount they'll lend on that.

Generali

Susy08 wrote: »

(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

Have you signed anything to say you will buy the house? If you have then you are probably obliged to complete the purchase at the agreed price. Bear in mind that they may well sue you to force you to keep you to your side of the bargain, or more likely make good any losses that result from them accepting a lower price from someone else.

If not then I'd tell the developer that you're only prepared to pay £xxx,xxx and see what they say. Unless you really like the place, it's a bit silly to overpay on it, ie pay more than the market price that has been set by next door less whatever you think is necessary for it being an inferior property.

bitsandpieces

Generali wrote: »

Have you signed anything to say you will buy the house? If you have then you are probably obliged to complete the purchase at the agreed price.

Unless you have exchanged contracts (through your solicitor, who should have explained the commitment involved) you are likely not obliged to complete at the agreed price, although you may lose reservation fees etc. Take advice if you're concerned about this.

Running_Horse

This happened to us during the boom. Saw a price advertised on a new build development, told it was sold and prices had now gone up. Walked away, then the market crashed. Sometimes you get lucky.

kriss_boy

GDB2222 wrote: »

That's fine if you are a 100% cash buyer. As soon as you want to borrow money, the price at which other properties have sold becomes of paramount importance, as your lender will base the amount they'll lend on that.

Possibly but it appears as though its a simple case of just wanting it cheaper because someone else got it cheaper..

Fair enough if you paid £250K but the other sold for £190K. Id be more concerned as the calibre of my haggling skills! But if you are talking about buying something for 210K but realising another sold for 200K then I think its a bit immoral to pull out.

You dont know the exact circumstances of the other sale.

I guess Englands a different Kettle of fish with gazumping and gazundering!