New Build Valuations

kittywife

Hi all,

Apologies as this is a cross post from the House Buying forum. Thought I might have better luck posting here.

We've had a full asking price offer accepted (enforced really) on a new build home. The Halifax are sending out a surveyor this week to value the house. Our plot is half built, but there are a few other same house types on the development. The question I'm asking is if banks are still down valuing new build houses these days?

The house we're in now was also bought off plan 5 years ago and it happened then.

Regards,

KW

Thrugelmir

Developers tend to overvalue to cover the cost of buying incentives and the installation of fixtures and fittings, white goods etc. Also to maximise profit.

andymd

We bought a new build off plan 4 yrs ago, the valuation was done before a single brick had been laid and was absolutely fine (we only had a 5% deposit) For the first 2 or 3 years house prices in our area were pretty stagnant but several of the houses resold for at least the price paid, even though a nearby development was still selling new houses. We've recently agreed to sell ours for nearly 30% above the price we paid.

Not sure I believe the assertion that builders over-value houses routinely, sure they will try to get as much as possible but when we looked, the new build prices were in line with similar older houses in the area, the only difference being the deposit incentives made it easier for us to buy (although HTB means this is now available on old houses too) and the ability to choose our own kitchen/bathroom, carpets etc. was a big plus.