No such thing as a free meal

Tax_Slave

We have been looking at multiple new housing developments in last 6 months. One thing I have noticed is that several of the large players such as Barrats , Boris , Wimpey etc offer deals known as Smooth Move , Easy Move etc where the development will contact estate agents , run the sales process and pay the agents fees.
All sounds great and who wouldn't want a free meal .....but what is in it for the developer ?

martinthebandit

They get to sell an overpriced house, simple really

Tax_Slave

But if you like the development and property type , why would you sell your house , manage sale and pay agent fees , when the alternate is that the development do it for you ?
Are you saying if you opt for going it alone , you might get a better deal on home you are buying via developer ?

Guest101

Tax_Slave wrote: »

But if you like the development and property type , why would you sell your house , manage sale and pay agent fees , when the alternate is that the development do it for you ?
Are you saying if you opt for going it alone , you might get a better deal on home you are buying via developer ?

Well some have frameworks to use national 'chains' - even when franchised. in exchange they get commission.


Some market with local agents and reduce their own liability for commission by offering up second properties via the smooth move etc.


Some do it to ensure smoothness in transactions


Some do it purely as a marketing thing

kingstreet

You can't have HTB on a part-exchange.

Therefore "smooth move" or "assisted purchase" or whatever have grown up to fill the gap.

You aren't going to win on the sings and the roundabouts, so sell your home before you open negotiations with a developer...

ST1991

I assume they do this (e.g pay agent fees) instead of you negotiating extras/different options in the new-build?

Tax_Slave

It's early days in any new house negotiation.
But on first site visit it was the normal sales pattern ;
- These plots are in high demand.
- Demand so high we are ahead of build schedule.
- We are not discounting or offering options on plots you like (still to be released or a date of release ) because they are the premium exec area plots
It's the normal demand will outstrip supply sales tatctic , so hurry and get in quick at the price we are selling at or lose the plot blah blah.
However from web page I see that some plots have been on market since August and reappeared in Rightmove this week , another plot we like we were told was reserved ...is now available again , bit they can't give a build date other than May or June maybe or price .
All very confusing or confusion created to panic you into paying asking price.

Tax_Slave

P.S. This not a part exchange - The property we are selling is a lot higher price than the one we would be buying even at developers initial opening price.

Is there much leg room on price negotiation on new developments ?
Well how long is a bit of string :-)

martinthebandit

Tax_Slave wrote: »

But if you like the development and property type , why would you sell your house , manage sale and pay agent fees , when the alternate is that the development do it for you ?
Are you saying if you opt for going it alone , you might get a better deal on home you are buying via developer ?

The developer is not a charity, if there is not a profit in it they don't do it.

Guess who they get the extra profit from?