Developer drops prices... What to do?

aishaonline

Hello all.. Just looking for some advice on what to do, if there is anything I can do...

I and my partner have put down a small reservation on a new build property. We have agreed on a part exchange price and all that's sort of holding things back is us waiting to hear from the Halifax on our mortgage application.

Thing is, I noticed that on the particular development we are buying, prices have dropped, from about 6k up to the highest drop down of 11.5k and I can't help but feel like I have been kinda cheated? I am wanting to phone up the sales advisor we have been dealing with to ask for some drop in our purchase price but not sure how to go about it. I have the missives but we haven't signed nothing as we were wanting to have an offer in place before signing anything. Have I got any chance of having some money taken off, in line with the other price drops? Any suggestions would be highly appreciated. Thanks in advance....

stator

How big is the deposit you've already paid? Are you prepared to lose it?

I doubt they will be willing to drop the price unless they really think you are going to walk away.

amnblog

stator wrote: »

I doubt they will be willing to drop the price unless they really think you are going to walk away.

There we are then.

shortchanged_2

I've never had any dealings with the new build market so is that how works? That you put a deposit down before you even have a mortgage offer in place?

Is this what is referred to as a reservation fee?

aishaonline

stator wrote: »

How big is the deposit you've already paid? Are you prepared to lose it?

I doubt they will be willing to drop the price unless they really think you are going to walk away.

Thank you for your comment..

Our reservation was only £99. We are meant to be paying £2000 with the signing of the missives. My partner thinks with the end of their sales year being so near they will be wanting as much properties off their books as possible so that gives us some bargaining power. I would hate to walk away but I would love to save myself some money...

aishaonline

shortchanged wrote: »

I've never had any dealings with the new build market so is that how works? That you put a deposit down before you even have a mortgage offer in place?

Is this what is referred to as a reservation fee?

We haven't put down a deposit. Just a small reservation fee. That way if we don't get a mortgage offer, all we lose is £99. We would only sign the missives and pay the bigger fee ok £2k once we get an offer from a lender.

LeoTLion

For the sake of 99 quid I'd be definitely giving it a go.


If the developer is dropping prices, they are clearly keen to shift some properties, for whatever reason that may be.


Even if they won't reduce the price there's a chance they will throw in some extras to sweeten the deal.


What have you got to lose?

shortchanged_2

The other issue here then is what would the mortgage company value the property at if they are dropping the prices on the other properties on the development.

stator

I don't know the Scottish system but for the sake of £99 I would definitely give it a go at haggling.

amnblog

aishaonline wrote: »

Thank you for your comment..

Our reservation was only £99. We are meant to be paying £2000 with the signing of the missives. My partner thinks with the end of their sales year being so near they will be wanting as much properties off their books as possible so that gives us some bargaining power. I would hate to walk away but I would love to save myself some money...

Your partner is right - why do you think these prices are dropping?