Discount on house?

noopys

I am currently in the process of negotiating a price for a new build.

I initially reserved the plot for £190,000 when the asking price of the plot was advertised as £195,000.

However, upon my research I have found out someone else paid £180,000 in October 2009.

Also, when my solicitor enquired about any incentives being offered the builder said they provide a discount of £9950 (but no specification of when or from what price).

I said I will exchange on the condition that I also get this discount, but the builder has come back saying that they already provided the discount and that the asking price was initially £199,950.

However, the asking price of the plot when I saw it on rightmove was advertised as £195,000 not £199,950 (I also have an e-mail from a salesperson at the builders confirming the price of the plot was at £195k).

Surely a discount/incentive has to be agreed by both parties? Can they just say they gave it to me?

I feel like the builder is being a bit sly. Thoughts please?

noopys

Bump

Advice needed

Running_Horse

It is not unusual for new build house prices to rise during the course of a development. Developers are out to make a profit, and will sell for whatever the market will stand. You are the market. Will you pay it?

ILW

It appears you agreed a price. Why would the builder want to drop that now?

poppysarah

Advice: don't buy newbuilds.

Cannon_Fodder

I think I'd have wanted a clear price/discount/extras package before reserving.

Have you used Property Bee with Firefox to check the Rightmove history for the property listing? It may have been £199k before you noticed the property.

You can threaten to walk away, and risk your deposit, but that depends how much you like the house and whether you are prepared to follow through.

Your mortgage Lender's surveyor may side with you on market value - and carry more weight as the developer will then realise the folly of turning away a buyer. Except, of course, the surveyor may not side with you...by which time you have committed more money to the cause.

Doozergirl

You agreed a price of £190k. You are splitting hairs over the agreed 'discount'

You either agree with them to drop the price further or not; considering that they know you were actually prepared to pay £190k doesn't stand you in good stead.

For a completion in October 09 we don't even really know when the sale was agreed but we are talking about a time where the property market was incredibly weakand it does appear to have recovered somewhat and the developer will expect to see this reflected in current sales prices. It was a good time to buy last year through the first half of the year especially, there were some real bargains to be had when the only people selling were those who were pretty much forced to. I'd be pretty sure that developers are asking higher prices now than they would have been back then.

noopys

Thanks for all of your advice! Much appreciated

noopys

The sales rep for the builder is saying that the house will not be discounted and that the 'executive board' have ruled against any discount for this property.

She also said unless we exchange now for £190k, they will put the property back on the market.

I am very surprised that the exec board of the builder would preoccupy themselves with such trivial matters. Is this all just a load of hot air?

poppysarah

Just walk away. let someone else buy it.