New build undervalued - Twice!

dhobi

I'm in the process of buying a new build. The first valuation came in at approximately 5% under the asking price. A second valuation came in at precisely the same under-valuation - different lenders and valuers.
I now need to speak to the developer to discuss a realistic way forward. What can I expect in that discussion? And what concessions, if any, can I expect to receive? Thank you.

Jon_B_2

Have you asked them to reduce the asking price to the valuation price already?

Thrugelmir

What incentives are you receiving already?

TBagpuss

it suggest to me that the valuations are correct and the asking price is too high. Obviously you can present the information about the valuations to the seller and try to get them to reduce the price.But whether they will be willing to agree to reduce it will depend on demand.

Rambosmum

I think 'house overpriced' appears to be a more apt title. Discuss with the developer and be prepared to walk away.

dhobi

Thanks for the responses. As a consolidated reply this is the current position:
1. I haven't asked them to reduce the price yet. I just wondered how developers deal with these situations.
2. I have been given approximately £1200-£1500 of incentives in the form of upgrades.
3. I am looking to spec up the property with 10-15k worth of further upgrades. Is this a potential bargaining position?

hcb42

With regard to 1, I would have done that before spending money on another survey.

clairecymru

When we bought our new build flat it was on the market for £140,000. We offered £125,000 was rejected. Upped our offer to £130,000 - accepted. Valuation came in at £115,000. We had no spare cash to pay difference in what mortgage lender would give us so told builder we would have to leave it. They then dropped price to £115,000. Sold it two year later for £130,000.

DRP

'Deposit not big enough' might be another apt title!

As others have said you'll have to negotiate - and if they say no, be prepared to accept it isn't affordable.

Thrugelmir

dhobi wrote: »

2. I have been given approximately £1200-£1500 of incentives in the form of upgrades.

White goods?

Fitted Kitchen?

Landscaped Garden?

Tiling?

pinkteapot

Be grateful to the valuers who are trying to stop you overpaying. Tell the developer that you can't afford to pay the difference between the valuations and agreed price, so unless they'll drop the price to match the valuations you can't proceed.

Developers have exceptionally skilled negotiators working on their sales staff, so you're probably feeling like they won't budge on price. It's their job to make you feel that way. Put it in simple terms as above, and I'm sure they'll have some movement on the price really.