Persimmon Homes: Guess the Price?

Jajay119

Hi Everyone,

I've read a few posts on this forum recently that have been very informative in multiple aspects but I wanted to post my own thread to ask for some specific advice, hoping someone can help.

I'm a first time buyer and currently looking round to try and buy my first property with my partner. We have quite a small net that we're casting mainly due to areas we know we like and could live in and are currently looking mainly round the Burscough/Ormskirk as this offers us a hub area of sorts for travel for the pair of us to the main places; but we're looking the wider Lancashire area, too.

Recently, Persimmon Homes have started selling off plots in a redevelopment of an old mill in central Burscough. I'd link the site but as I'm a new user I cannot. Sorry The apartments are all one and two bedrooms and looking on Zoopla/Right Move and, indeed Persimmon's own website, the accommodations are priced from £80,500 as a minimum and up.

Now, I'm by no means unrealistic. Burscough and Ormskirk are still somewhat affluent areas and this was an insanely low price for this type of property (other two bed aparts in the area often selling from £110 - 120 000) but the style of the building and the thought of being able to get a new build for maybe lower than the general prices was attractive so we went to view a show apartment, were talked to by the sales rep about all the benefits of buying from Persimmon and had any worries we may have had, theoretically, about buying off plan qualmed. The truth is we're only just starting looking to buy and I wasn't about to throw down a deposit there and then as the sales rep seemed to think I was going to do; even putting me on to a financial adviser there and then.

We liked the show home. But, it did smack of 'this is not your basic build' decoration. After viewing and returning to the office we talked money and the results were quite shocking. We were being told that the apartment shown as from £80 500 on various sites had now risen to an astronomical and seemingly solid £134 000, or £107 000 if we chose to use help to buy.

Now, I know new build companies will often tailor your home to your liking with optional extras which are largely overpriced, but, looking at 'what you should know' notations on the photos of the show home where details of upgrades were given only (please read 'only' with a sarcastic tone) added around £10 000 to the list price. I tried to get out of the agent why there was such a discrepancy between the prices but she was very reluctant to tell me about any price below the £134 000, what in the show home were extras and what a 'basic' build would look like/ cost. Though she was happy to tell us what we got for the £134 000 which, in all honesty, seemed like the show home minus the furniture and wouldn't mention much else. I know they try and make a killing on the interior design but surely a jump of £50 000 is a stretch even by this standard. I don't see what in the show home could cost that much more. I was thinking of popping in again to try and uncover this further but it certainly does seem like it's going to be a heck of a lot of trouble to find what the list price gets you and what extras cost etc. Should I just save myself a lot of trouble and walk away now? Or, does anyone have any tips for squeezing the truth out of them? Thanks in advance.

nidO

Interesting, Persimmon's site definitely shows the "Type B" plots on that development with a list price of £80,500 - I had assumed the discrepancy was going to be down to a shared equity "you only pay this much now!" headline price without mentioning that Persimmon retains 40% of the property or something similar, but indeed their site is clear that £80,500 is the full list price.
Their site even gives a HTB calculation example, as:

Your deposit (5%) £4,025
Help to Buy loan (20%) £16,100
Your mortgage (75%) £60,375

Plot price £80,500

So I can't see why they would now be telling you its >£100k.
Maybe take the printout of the page with the HTB calculator as above showing into the sales office, and ask them why the price discrepancy.

Malmo

You should be aware that Persimmon only managed 3 stars in the annual HBF survey.

http://www.hbf.co.uk/policy-activities/customer-satisfaction-survey/2015-results/

emmatthews

Ask them to tell you which plots are available at the advertised price.

jimbog

Is this it?
http://www.persimmonhomes.com/ainscough-mill-10265

LeoTLion

You could try ringing the regional sales office and ask them what plots are available and how much the plots are.

There should also be a standard specification list and an 'optional extra's' brochure. The regional sales office should be able to email/post them to you.

Jajay119

^ I didn't think of that. Thank you LeoTLion. I've been able to find a brochure of extras (or 'finishing touches' as Persimmon likes to call them; but with no prices attached but there doesn't seem to be a standard specification list anywhere on their site. I shall email them and see what they say.

@Jimbog, that's the one, thank you for linking it into the thread as I was unable to. As NidO pointed out their site is somewhat misleading on the issue showing the list prices there and then something else entirely on a price sheet I was given at the show home, for the same plots shown on the site; same names/numbers and everything so I do feel like there's some intensive game playing going on here.

I do know Persimmon aren't the greatest; they've been featured in some bad press by the BBC's watch dog and as Malmo pointed out they're not too great on the HBF survey either I was planning to go to the show home again and try and ask them what the difference is between the listed price on their site, a figure which, again as NidO pointed out, is even used for their own mortgage calculator to what the price is they've given me on their own fact file at the viewing. Hopefully I'll be able to get something of a straight answer out of them with regards to what a 'bare minimum' build is and would cost versus what you get for the £134 000 they seem to want to charge.

LeoTLion

Also don't forget that any prices they quote are negotiable.

It is often possible to get some of the 'Finishing Touches' included in the sale price as they would rather do that instead of discounting the sale price as it shows up on the Land Registry and future buyers are more likely to haggle if they see others got a 5% discount.

In truth, developers often charge over the odds for the extra's and getting a tradesman in after your in will save you money, but if it's part of the haggle and you're happy with the overall deal it's worth considering.

dgtazzman

I'm left wondering why there is such a price difference between the different types of flat, or in fact between flats of the same type. One type H is 84k, while another is 138k, etc. What could possibly justify such a large price difference...

LeoTLion

I would guess the more expensive ones have waterfront views.

dgtazzman

Wouldn't think waterfront views would add 54k to the price tag of an 84k flat, madness, but then that might just be me. I'd take the cheap flat and hang up a nice painting of a waterfront...