Homebuy Direct

emmapear

I am interested in buying an apartment on this scheme but not prepared (or able ) to pay the asking price. I have made an offer £8000 below the asking price and they say that there is no negotiating because they are homebuy direct and they cant negotiate on a 'scheme'. Firstly, is this true, secondly, if not, what can I now do to negotiate a better price? This scheme comes to an end at the end of September and they have lots of properties left on it so I thought this might give me some bargaining power, but perhaps not.

Any advice would be great :-)

robin_banks

Pkenty of threads re this subject, largely negative.

Muhasib

robin_banks wrote: »

Pkenty of threads re this subject, largely negative.

Which are negative because of the same people replying to them with their point of view.

timmoff

Hello!

I don't see why there should be no scope for negotiation through HomeBuy. New Developers constantly cut prices on their price list, and really it seems that there should be no difference on HomeBuy. One difficulty I see is the fact that HomeBuy ask for a floorplan/price list for the property you are purchasing, presumably so that they can release the required amount of funds - the other half the developer finds... This doesn't seem a major problem to me.

Like you say, developers are keen to push HomeBuy, given it's proposed end date in September. However, some developers are being given what I think is called 'kick-start' funding that will allow some developers to extend the cut-off date beyond September. Also, although details are sketchy at the moment, there apparently is a scheme to replace very soon.

As a first time buyer, you certainly should have bargaining power, and judging by some of the discounts 'other' buyers have negotiated outside of HomeBuy, there is plenty of scope... unfortunately I don't know the actual official party line.

What I definitely would say though, is makesure that you negotiate as many extras as possible, as I am certain they will bend over backwards in the way of furnish etc.

Hope this helps in some way.... I am between a rock and a hard place with HomeBuy at the moment!!

betmunch

They are using it as an excuse not to negotiate.

There is no reason why the homebuy direct scheme cannot be applied to houses/appartments because of a change in price!

I think you will find the builder doesnt want to change the price, and to be fair, you cant make them!

If you dont buy the property someone else will, or it could be rented out, or sold cheaper without homebuy, or left empty until it does sell. Theres plenty of options to the builder I'm afraid

emmapear

Thanks a lot for your advice. Lots of options for me, I might sit it out and wait to see what other schemes they come
up with when this one finishes. Do you think there will still be help from the government as different schemes for ftbuyers judging by the current financial climate?

Doctor_Gloom

emmapear wrote: »

I am interested in buying an apartment on this scheme but not prepared (or able ) to pay the asking price. I have made an offer £8000 below the asking price and they say that there is no negotiating because they are homebuy direct and they cant negotiate on a 'scheme'.

The whole point of these schemes is to keep property prices artificially high. So being able to negotiate on the asking price would rather defeat the whole purpose of it. Wait 6-12 months and buy a proper house or flat would be my advice.

ConfusedLucy

Hi

I really really need help on this asap. What banks work with this scheme? Natwest, Nationwide and Halifax are all either rubbish rates or jerking me around.

I can't find a definitive lift anywhere.

Thank you in advance!!

timmoff

Hi,

I've found it to be pretty much the same. I think that is one problem with the Homebuy scheme, in so much as mortgage options are pretty limited.... I can't add any more mortgage providers to your list! Only thing I can suggest is speaking to a whole-of-market mortgage advisor, or at least one with a decent panel, and see what they can offer. If you go with that, obviously just be careful that ther a fee-free so that they take their commission from the mortgage provider rather than you - sorry I can't help much more than this.

We're still trying to weigh up the pro's and cons of buying via the Homebuy Direct scheme on new build properties..... I think there are many things to look into before deciding to go with this for sure.... the whole equity repayment is very confusing.....

sorry i can't help you much more!

Muhasib

ConfusedLucy wrote: »

Hi

I really really need help on this asap. What banks work with this scheme? Natwest, Nationwide and Halifax are all either rubbish rates or jerking me around.

I can't find a definitive lift anywhere.

Thank you in advance!!

If you check some old threads about HBD on the forums then there are some smaller building societies mentioned who deal in their own local areas with the scheme. Also the Teachers Building Society on their website say they offer mortgages on the scheme.

Jackinbox99

At the end of the day, its up to the seller as to what they want to accept for the property. Builders these days are greedy. One of the houses I offered on last month was owned by a building company. I started off offering about 10% less than the asking price initially and got refused. I loved the house and ended up offering only 2k less than the asking price as my very final offer, and still got refused. I had no chain and the property had had no offers at all in last 12 months.

Builder ultimately shot himself in the leg tho, as over last month they have had no offers still, and now they are phoning me up asking if im still interested, and the advert for the house now says "any offers considered for quick sale!!!!!".