New Build, contracts & valuations

SilverSix

Hi,

I'm expecting my contract appointment to sign for my new build which is due to complete in October to come through in the next 2/3 weeks.

I have my AIP but we are waiting a short while before we start the application process due to it being so far away and not wanting the offer to expire prematurely or the completion date to be pushed back.

I personally thought the valuation from the developer was a little high despite negotiating a reduction on the purchase price as it's a detatched build but only semi-detached as it has a town house built on to one side (joined by the second floor only due to a car port).

In the case that my MP values the house to be worth slightly less than the agreed price and I have already signed contracts and paid a 5% deposit (with the rest to pay upon completion) would I be in a position to re-offer less in line with the valuation for the property? Or should I get my application underway and the valuation done before I sign? They have a showhome built but not one semi-detached like mine. I don't think the difference will be massive if anything at all but I'd like to cover myself should I get a surprise.

Thanks

BennyC

poppysarah

BennyC wrote: »

Hi,
In the case that my MP values the house to be worth slightly less than the agreed price and I have already signed contracts and paid a 5% deposit (

What have you signed?

brit1234

I think there are lots of posts on here where buyers have renegotiated the price on basis of survey.

Stick to you guns and haggle, you don't want to over pay.

SilverSix

poppysarah wrote: »

What have you signed?

Nothing except the reservation deposit. I was stating 'in the case that I had and the X happens'.

brit1234 wrote: »

I think there are lots of posts on here where buyers have renegotiated the price on basis of survey.

Stick to you guns and haggle, you don't want to over pay.

Thanks. I'm seeing the builder on Friday so will get to speak to them then. I'll also call my MP and see how quickly the application can be processed and a valuation done should it be necessary at the stage.

It's a very well laid out house and across the road is a railway line terminates that goes all the way into Marylebone plus it's on a good spot in the development. I wouldn't have any quibbles with the price if it were fully detached however it's only semi. I just don't want to take a hit should I ever sell because I've overpaid. I did ring head office and see what I could squeeze out of them but they weren't willing to budge any further.

I'll keep this updated for anyone else future reference.

Richard_Webster

Don't look at what other houses on the developers estate are going for - look at similar second hand houses nearby - in 5-10 years time when you might want to sell nobody is going to pay you more because the place is slightly newer.

NEVER EXCHANGE CONTRACTS UNTIL YOU HAVE MORTGAGE FUNDS AVAILABLE WHICH WILL STILL BE AVAILABLE AT COMPLETION.

poppysarah

BennyC wrote: »

I just don't want to take a hit should I ever sell because I've overpaid.

(a) don't buy a new build
(b) house prices can go down as well as up.
(c) if you buy now and house prices fall further (The general outlook for property relies on employment) then you'll have overpaid.