New Build Reservation requirements?

PatrickC

Hi all, just a quick question. Me and my girlfriend are very interested in a new build property but they said we can't make a reservation until we could provide proof our home is under offer in a complete chain. However the property isn't available to move into until June. I can't see how this works? Is this normal? Is anyone actually going to want to wait 7 months after making an offer to move in?

bclark

Yes that's normal and how it works with new builds.

It's a pain in the !!! really but yes you have to find someone who will wait or you have to move into rented accommodation until it's ready.

Bill23h

This is the reason that the larger building firms offer to Part-Exchange.
Have you asked if they do?

PatrickC

That is a right pain. Have to see how the house goes on the market I guess. And we asked about part exchanging they said they'd only do it if our house is worth less than 80% of the new build (it isn't) and they'd pay less than market value too as they need to sell it on and make a profit. Which financially is a no go really. I'd rather sell and rent for 6 months.

tim9966

I've found the same thing. I've found a new build estate in a perfect location. I've seen the house designs and they are building some in the design I want.


I could put a large deposit down today even though the plot I want isn't going to be available until next summer. I don't mind the wait. They won't let me until I've sold my house, even though I've got 10 months to sell it.


I'm wondering what they would have done if I didn't mention I had a house to sell. Would they have let me reserve the new house.?

davidmcn

tim9966 wrote: »

I'm wondering what they would have done if I didn't mention I had a house to sell. Would they have let me reserve the new house.?

Possibly, but they'd also want you to exchange contracts shortly afterwards. So if you're not in a position to do that, better to filter out people at the reservation stage.

martinsurrey

tim9966 wrote: »

I've found the same thing. I've found a new build estate in a perfect location. I've seen the house designs and they are building some in the design I want.


I could put a large deposit down today even though the plot I want isn't going to be available until next summer. I don't mind the wait. They won't let me until I've sold my house, even though I've got 10 months to sell it.


I'm wondering what they would have done if I didn't mention I had a house to sell. Would they have let me reserve the new house.?

Then you'd be exchanging on the new build before you've sold your current house.

From the developers point of view, Reservation means pretty much nothing, you can pull out with a phone call, and they'll refund all/most of your reservation funds.

The plots that sell early are the best on the development/phase, they want to sell them to people in positions to exchange asap to secure some sales, also the closer to build complete they sell them the more HPI they can benefit from.

It's like that for all developers.

gregsayer

im in the same boat,


I was going to do use a builders moving service, where they act and pay for estate agents costs, but I couldn't reserve until I was on the market, I was literally 2 days away from launching on the market through them, when I called for an update to be told they had sold to someone living in rented, so they could proceed straight away. I knew I would have no trouble selling mine, and told the builder as such, but they wouldn't here of it.
I this was two weeks ago, I then put my house on market last Friday, have had 7 viewings and 2 offers, and expecting 3 more people to call estate agent as soon as they open with offers.


what ive done now is targeted a couple of houses that have become available again after someone else pulled out, rather then wait 7 months for a pile of mud to be turned into a house, one is ready in December, and I've got a couple of 1st time buyers and an invester going for mine.

libf

tim9966 wrote: »

I'm wondering what they would have done if I didn't mention I had a house to sell. Would they have let me reserve the new house.?

Quite often you have to speak to a mortgage broker with details of finances before they'll let you reserve, so if you need your sale for funds then it's discovered that way.

Birdman2015

bclark wrote: »

Yes that's normal and how it works with new builds.

It's a pain in the !!! really but yes you have to find someone who will wait or you have to move into rented accommodation until it's ready.

It may depend on the builder. We saw our "dream house" was available on a new build site last month (the person who reserved passed away) so we asked about it and they suggested we could reserve despite our house not being on the market till the following week.

3 weeks on we still don't have a buyer but the builder is giving us another week. The fact the market is very slow round here is working in our favour. The house is pretty much ready to move into so we will be gutted if we don't get a buyer soon.

gregsayer

the sales lady told me she wouldn't sell the plot I wanted, but then sold it to the first cash buyer, so don't get too excited.