Bargaining position - pulling out of new build purchase

franklee

OP, Your post #9 contains loads of new information that wasn't in your original post and all those factors will influence the results as surely each deal is on a case by case basis. We don't even know how 10K sits as a percentage of the house price as we don't know the agreed price!

Is the builder a large one with reserves, a small one that may have cash flow issues especially near year end? Can you look em up at companies house and confirm if 31st March is really their year end? Can you get pally with anyone on site and have an informal off the record sounding out. A random on site obviously won't be able to give you the discount but you could get an idea how busy the sales are and how keen they are to meet March 31st. That said if it is their year end then you'll miss it either way?

So for all anyone can say you may as well ask for the 10K, Id' expect it to get a counter offer rather than a flat no first off. That is if you can still proceed right away and aren't hampered by a mortgage offer running out or the like then again why not start at 15K.

Derboy

melstar11 wrote: »

Sorry - so contractually you are released from your obligations if you want to be and that's all it says?

Basically yes. I am free to walk away with a refund of all monies paid to the builder so far.

melstar11 wrote: »

I'd look at this differently: what do you need to see from them to stick with it? At the moment the questions you are asking make it sound as though you aren't all that bothered, but are out for what you can get - sorry, that's how it reads.

What are your rental circumstances as in how long is the initial AST and will you be under any pressure to sign up for another fixed period once it is over? If so then will the builders cover the rent? What about your removal costs perhaps?

If the longstop date is going to be missed, what does the contract say about this? That would be the first thing I would look at.

As it stands I'm inclined to stick with it if they can convince me that it won't be delayed further. My mortgage deal expires about a month after the current completion estimate (I've already extended it once already). My considerations are whether I'm convinced there will be no further delays and what they're prepared to do to keep me on board. I've invited them to propose this to me as a measure of how committed they are to keeping us in the deal and expect to negotiate from their. I'm not necessarily looking for financial recompense or money off the house, but I'd like to see a significant gesture and assurances about no further delays.

I'm wondering if it's feasible to get a new contract in place where they agree to a financial penalty if they delay once more. These delays are due to weather. they're simply not building the remaining houses fast enough.

Rental circumstances aren't a factor.

Derboy

franklee wrote: »

OP, Your post #9 contains loads of new information that wasn't in your original post and all those factors will influence the results as surely each deal is on a case by case basis. We don't even know how 10K sits as a percentage of the house price as we don't know the agreed price!

Is the builder a large one with reserves, a small one that may have cash flow issues especially near year end? Can you look em up at companies house and confirm if 31st March is really their year end? Can you get pally with anyone on site and have an informal off the record sounding out. A random on site obviously won't be able to give you the discount but you could get an idea how busy the sales are and how keen they are to meet March 31st. That said if it is their year end then you'll miss it either way?

So for all anyone can say you may as well ask for the 10K, Id' expect it to get a counter offer rather than a flat no first off. That is if you can still proceed right away and aren't hampered by a mortgage offer running out or the like then again why not start at 15K.

Builder is financially sound as far as I can tell. I'm on good terms with the site sales person so I could have a chat with them. She may be able to give me an idea of what they've done in the past in similar circumstances.

What I was really hoping for was to find out if anyone on here had been in a similar situation and what happened with them as that'll give me a rough yardstick of what's possible.

At the moment I'm more concerned about the date slipping further. We're definitely keeping our options open and will be arranging a viewing on another property that we like and is currently empty.

Hoploz

If it's really the date that is the issue then I think I would stick to that factor in your negotiations. How near is it to being ready? Are they faffing around at the end or are they still getting the roof on? Give them a date at which you will walk away.

What significance the date of 31st march has we don't know - maybe it's incentives for BTL investors? A 10k lower price in a different locality is really not relevant either