New Build House: Price Negotiation Chances 2015

white_noise

sh856531 wrote: »

I'm with Ellie. The real "bad point" that you may be missing is that new builds lose their value the moment you move in.

This may be different down south but in the north east of england, I've never seen a new build recently where when the owner comes to sell 2 - 5 years later they haven't had to a swallow a loss running into 10's of thousands of pounds.

Examples I've seen recently:

2 bed flats bought for 120000, now on the market for 80K
2 bed semis bought for 140000, now not even getting 105000

We are in a similar (but less catastrophic) situation where we bought for 90K and will likely have to sell for 80K. That 10 grand is the absolute limit of what we could afford to lose. How the people in our estate who bought a couple of years before us are coping - I dread to think. It's a horrible situation.

Be very, very careful buying a new build house. Demand is often only strong *when its new* - that will be *zero* help to you if you need to sell it on in a couple of years time.

If you really, really like the whole, tiny rooms, pointless garages thing that new builds seem to have going on these days, buy one that is 2 years old and let *that guy* swallow the loss.

Of course your own local circumstances/environment might be very different to ours but just be very careful. Taking a 15K - 20K loss can be a very hard thing to have to stomach on your first home

Anyone got any evidence to support this view rather than anecdotal examples. I'm not having a go, just interested.

CM66

Just to give the other side of the story, i bought a new build 6 years ago for £195k and my neighbours has just sold their identical house for £290k (well it was up for this, but it was sold within a week so cant imagine it went for much less)

Its not all doom and gloom!

BlueIsTheColour

Someone sold their 3bed semi here for 9k more than they paid it having owned it for just 6months so like most sales, location, supply, demand are key whether it's new or pre-loved...

As I mentioned, my 10yr old flat lost me £43k in those 10 years but it was purchased during the height of previous boom & was definitely over-priced and yes I was an idiot to buy in the first place...

Jon_B_2

My landlord is selling our house which is a new build which he bought in 2008 for 195k. Will probably get 235k judging by local market.

My sister in law bought a new build in 2011 for 135k and sold last year for 138k.

I bought a new house off plan back in January, don't move in til November. Bought for 275k and now equivalent house types in less desirable plots are being sold by the developer for 295k...

Negotiating in a hot area like here is practically impossible especially on 2/3 beds with help to buy. Getting stuff thrown in is easy enough though.