New build undervalued

Luke-ftb

Tbh you are probably right we were very naive as we offered to pay asking price which i now realise was a big mistake. In hindsight and looking at the bigger picture I guess we should be thanking the surveyor for protecting us from negative equity. we also kind of trusted the estate agents valuations which again was a mistake.

We are buying on help to buy so that wouldn't be an option anyway I guess we have to put it down as a harsh lesson learnt.

Sparx

OP we was in a similar situation to you in 2014 when we bought our new home from Redrow. It was a 3-bed semi detached new build - listed for £140k originally.

When we come to reserve they had decided to up the price from £140k to £146k - because it was the 'next phase' and a whole year later since they built the last pair... We were desperate and loved the home so plodded on. They had only sold 2 the year before in 2013 for the £140k price tag. So when Nationwide sent out the gent for his valuation, he come back and said "no sorry, these are worth £140k".

The mortgage advisor we used (who was Redrow's own, however he was very good so we stuck with him) tried to steer us to using Halifax as A. more commission for him and B. historically likely to just accept the £146k valuation, but we stuck to our guns and said no.

The next day the nice sales agent at the show home, brings us in and agrees to sell us the house for £140k! Whilst honouring the 'incentives' of carpets (woop-de-doo) still... So Nationwide and the surveyor did us a favour and saved us £6k!

My advice is walk away, sounds like they are overpriced! Don't feel miffed at the valuation, be miffed at the greedy builders/developers! They will likely crawl back to you.

Luke-ftb

Thanks for all your responses it's very helpful, especially when you have the estate agent putting the idea of a dodgy valuation into your heads. Think we just have to walk away, keep an eye on the prices and treat it as a lesson well learned.

csgohan4

New houses are always over priced, it's what is acceptable to you

Thrugelmir

Luke-ftb wrote: »

Thanks for all your responses it's very helpful, especially when you have the estate agent putting the idea of a dodgy valuation into your heads.

Property is only worth what somebody will pay. So is extremely subjective. The EA works for the vendor. If the vendor wants x for the property then thats what the EA will market it at. There's nothing dodgy.

If few units have yet been sold then that £10k difference. Makes a sizable difference to the profit the developer will ultimately make.

Luke-ftb

Thanks for the response I totally understand what your saying. Maybe it would be worth just pulling out and waiting to see how the sales go?.

Is there a good chance another lender would just value it exactly the same? There are literally no comparables for the terraced houses and I guess this is all the valuer has to go on seeing as though they haven't sold any if the house type yet.

csgohan4

when I was looking at new builds, got told the one I was looking at was the last one and I should buy, walked away as it was too much, still selling it and others 9 months on.

ffaruk

I’m having some difficulties with a new build ftb purchase. Nationwide have valued the house at 270k, whilst the asking is 279,995. RedRow are not moving at all and are refusing to even consider.

The last 3 bed sold at around 260k. The valuation form didn’t include and comparable or anything, the broker said there are none (mines is 1 of 2 last 3 beds left in the side of hundreds).

Broker trying to push me to halifax.

Any advice on what to do? There is one house that went up for reservation same time in May but is still available, and the price for these 3 beds have gone up considerably.

I need some help on how to get RedRow to reduce the price or offer some icentives to help this.

AnotherJoe

ffaruk wrote: »

I’m having some difficulties with a new build ftb purchase. Nationwide have valued the house at 270k, whilst the asking is 279,995. RedRow are not moving at all and are refusing to even consider.

The last 3 bed sold at around 260k. The valuation form didn’t include and comparable or anything, the broker said there are none (mines is 1 of 2 last 3 beds left in the side of hundreds).

Broker trying to push me to halifax.

Any advice on what to do? There is one house that went up for reservation same time in May but is still available, and the price for these 3 beds have gone up considerably.

I need some help on how to get RedRow to reduce the price or offer some incentives to help this.

Tell them you cant afford to buy at that price and to call you if they will drop to nationwide's valuation. You wont be the only person with this problem.

sal_III

if it's a site of 100s, what was the average price of 3 bed in the development? I can see hoe RedRow are trying to inflate the price of the last couple of properties due to limited supply, but Nationwide are interested in the resell value in case you default on the loan.

Have you asked yourself why this is one of the last 3 beds left? Is it bigger hence more expensive or is there something wrong with it that have put off other buyers?