New build house and the new build crematorium

MrParsons

Hi all.

I've been looking at a house already built on a new redrow estate in Countesthorpe. We're looking at the Cambridge and it is up for 280k. I will not pay more than 250k and am in negotiations with them although they are being a little bit stubborn and refusing to move on price but all they can do is 10k extras... So I walked but the sales man asked what it would take to do a deal so is calling me tomorrow.

I was going to offer 247k as a starting point but now think 240k. I have a decision in principal from the mortgage company although I have a house to sell.

Today I found out that on the adjacent plot of land to the redrow development they will be building a crematorium. I don't mind this personally however I would like to know what kind of effect this would have on house prices.

You can see the plan of the Leicester council website http://politics.leics.gov.uk/documents/s69987/J%20proposed%20disposal%20land%20countesthorpe%20appx%20c.pdf
The house I am interested in is towards the main road and is central to the estate.

So what do you guys think? Is 240k not enough to seal the deal? Will the crematorium plans give me extra ammo for a better price? will the cream atrium give me problems when trying to sell?

All help appreciated.

OddballJamie

Unless they are struggling to sell, I can't see them wiping £40k off as they will want to keep the LR price high. How far along is the estate from being finished?

Personally crems give me the creeps, but if it doesn't bother you then I wouldn't worry about it. Rather have a crem opposite than an industrial estate or loads of tower blocks.

MrParsons

Its in the first phase and I believe the 2 houses which are built of this type have been on the market for some time. They have certainly been listed on RightMove for around a year (Thanks property bee!) As I'm sure you're aware, the house prices are vastly over inflated to cover the negotiation process. Based on what some people say on here the starting point for any negotiation should be 20% discount. I'd be willing to buy at £250k provided some extras are thrown in.

There lies my point, you've just said that Crematoriums creep you out so I'm sure it would for others too. this would affect re-saleability and subsequently price (Supply / Demand). It doesn't bother me but what does bother me is the price of resale and in turn current market value. I should also add that there are only 4 of these house types available on this site. 2 are already built and sitting there, 1 is not on the cards for at least a year and the final one is at the end of development. The sales person said he thinks it would be around 4 years until the development is fully complete.

I don't want to pay over the odds for this property and I am willing to walk away but not before a good fight with the negotiations.

Any pointers on what price to start at?

DaftyDuck

The crematorium would not affect me personally, I wouldn't care. However, as a speculative house-buyer, I avoid properties like that, as it will affect the resale value heavily, and may well hinder natural property price increases. The effect is minimised as you are buying in the middle of the estate. So, it is swings and roundabouts... Would I? I'd certainly use it to bargain the price down as low as I possibly could. I suppose it might affect the retail price by 5% or so, but it will more affect the desirability, so sale may be slowed down (more so with a new biuld, as there would always be other similar but unblighted houses available).

MrParsons

Thanks for the reply Dafty. I think your stance is exactly how I feel about it. I don't think it would bother me in the slightest however it would put people off buying this house at a later date. I don't think its due to be built for 2 years or so at present so there's no wonder that Redrow failed to mention it.

Based on the desirability factor alone, it could drive the price down if we wanted to sell in 5 - 10 years time which is what my worry would be. Based on the asking price and the planned developments I am tempted to make an offer of £240k and see what happens.

tim123456789

MrParsons wrote: »

Its in the first phase and I believe the 2 houses which are built of this type have been on the market for some time. They have certainly been listed on RightMove for around a year (Thanks property bee!) As I'm sure you're aware, the house prices are vastly over inflated to cover the negotiation process. Based on what some people say on here the starting point for any negotiation should be 20% discount. I'd be willing to buy at £250k provided some extras are thrown in.

I think starting at 20% under, especially in an area like Cambridge which from my short time there doesn't seem to have suffered the selling problems of other areas, will get you marked down as a time waster.

YMMV

LittleMax

tim123456789 wrote: »

I think starting at 20% under, especially in an area like Cambridge which from my short time there doesn't seem to have suffered the selling problems of other areas, will get you marked down as a time waster.

YMMV

You have clearly only skim read the OP's posts. He is buying in Leicester not Cambridge. He is interested in the house design by Redrow called the Cambridge.

yoyoegg

I would like to know what kind of effect this would have on house prices

Massive to rendering it unsaleable, IMHO. The Hindu & Sikh community are winning the right to have open-air funeral pyres.

bclark

I have to say 20% seems more than hopeful and it doesn't seem to match any advice that I have seen on here recently.

You may get it but I will be shocked. I would be willing to bet that your update after talking to them is stamp duty paid, flooring and turf.

I would also be careful about paying much heed to property bee here as in my experience of tracking new builds they always show up as having been listed for ages as they advertise the house type and where they do list a particular plot number in the ad that doesn't seem to show up as a change on property bee.

OddballJamie

I've had a look on the site plan, I take it the houses are plot 6 & 7. I would use the plot position as a bargaining chip too.
Plot 7 is on a corner so will have car headlights through the windows as they turn the corner.
Plot 6 garden is overlooked.
Both have a sort of shared driveway, which if it's narrow can cause issues with door banging.
Plot 162 would be the better one to go for.
There's also over 30 affordable houses being built, seems quite high.

http://media.redrow.co.uk/system/attachments/000/010/252/original/Thorpe%20Meadows-Siteplan-20.07.12.pdf?1343301634

Also how long are you planning on staying in the house, 5 years or less means you may lose money , remember the 'newness' factor will be gone for the new buyer.

MrParsons

Thanks for the replies guys, just the info I'm after so keep it coming.

The 20% was a starting point. I'd probably be happy with £250k which is about 13%. Carpets and (very poor) turf are already in on plot 6, not on plot 7. I do not expect to pay for turf when its not a completed house unless something is down in the back garden.

The drive is not shared however there is no partition between driveways so the door banging could be an issue.

I'd be planning on living hear at least 5 years, more like 10. frankly, I think they have to move on price. £280k for that square footage on this village is overpriced by about 40k