10% Increase Since Dec?

slaity

We finally found a new house we would like to buy and have agreed a part exchange price for our current property with the company. However I have just found out that a similar property on the same development sold in December for around 10% less than the current selling price (around 20K). We had agreed for the kitchen and bathrooms to be upgraded and carpets through out when we did the inital discussions.

However now I have found out the price in December, I have asked for a lower price as well. The sales advisor has stated that this is not possible and the asking price is as it is.

Is there any other course of action I can take before I walk away from this deal? The house is fantastic but I refuse to pay the extra 20k for a house I thought was slightly overpriced anyway.

Any advice most grateful

ukbondraider

Nothing you can do. You either walk away or pay. Depends how much you like the house. If it is desirable then you can bet that there will be 4 or 5 other folks behind you willing to pay.

As for the price increase, for some unknown reason there has been a significant jump since xmas. It has been seen in many places in the southeast where I have been looking so 10% increase sounds about right.

Graham_Devon

The same as when your buying a pack of buiscuits, look at the price and decide whether you want to purchase them or not.

2 options really. Walk away or buy.

barrymoney

Hi-
If its a fantastic house, perhaps its worth sticking with? I'd compare with other houses on the market now, its really depressing looking back at past prices... Also, perhaps the other house was a dump, you never know.

I agree, in the south-east there seems to be some crazy house price inflation lately. Not scientific, but there are houses 'identical' to mine nearby which are on the market for 25% more than mine was a year ago. I thought I'd bought at the top of the market last year, its really crazy.

all the best.
[ EDIT - sorry, now realise you are talking about new development. Still, the 25% rise in my area of berkshire still applies! ]

nollag2006

Where I've just bought, house prices are up by about 10% since Christmas.

Depending on the area, it could be possible.

Have you checked out the various house price websites? Also, I'd suggest you ask other local EAs if a 10% price rise is feasible since Christmas.

Massive_2

Such rises are certainly possible, and indeed not uncommon.

Developers release properties in phases, and the prices go up at each stage, and can rise much more frequently than that, dependant on interest and demand.

I recently reserved property on a new development, on the morning of release. At the end of business 6 hours later, the price had gone up by £25k. Four days later, it was £85k higher.

If you're planning to buy, you must pay the reservation deposit and freeze the purchase price immediately, or the cost will go up.

Regards