New Build Price Reduction (other plots)!!

tt07

We're pretty close to exchange on a new build and today we've noticed a price reduction on not dissimilar plots.

Although comfortable that there is generally a new build premium this makes that premium even more so and a little gauling.

Anyone had similar, what did you do and have success with?

ETA if had exchanged I appreciate there's nothing I could do as it's result of supply and demand and if prices had risen I'd not pay more....

Tom99

How much reduction are we talking about?

Mickygg

The same can be said about anything. I bought a tablet a week ago, it's now in the sale!
You can go to them and ask for money off, but you want your plot over other plots so it may be worth more and the developers may say just that they can find a buyer for your plot at your price.

Missus_Hyde

Mickygg wrote: »

The same can be said about anything. I bought a tablet a week ago, it's now in the sale!
You can go to them and ask for money off, but you want your plot over other plots so it may be worth more and the developers may say just that they can find a buyer for your plot at your price.

Agreed; it rather depends on how much you want that particular plot and also whether there are other buyers in the sidelines, who would be quite happy to pay the same price as you’re paying for it.

tt07

Tom99 wrote: »

How much reduction are we talking about?

£20k around 5.33%

Mickygg wrote: »

The same can be said about anything. I bought a tablet a week ago, it's now in the sale!
You can go to them and ask for money off, but you want your plot over other plots so it may be worth more and the developers may say just that they can find a buyer for your plot at your price.

That's true, more so had we actually exchanged, at this point we are still able to walk but I do accept that could also be the case with the plots.

As an aside we bought a patio set once that was reduced shortly after purchase we had a "chat" with the store and secured a refund of the difference always worth asking...

tt07

Missus_Hyde wrote: »

Agreed; it rather depends on how much you want that particular plot and also whether there are other buyers in the sidelines, who would be quite happy to pay the same price as you’re paying for it.

The other buyers is the perpespective we don't have, we can take a view based on how it's sold since we put of reservation fee down.

Cakeguts

Are the size and orientation of the cheaper plots exactly the same as your plot. I can see that strangly shaped ones or ones where the back garden faces north might be more difficult to sell.

tt07

Cakeguts wrote: »

Are the size and orientation of the cheaper plots exactly the same as your plot. I can see that strangly shaped ones or ones where the back garden faces north might be more difficult to sell.

After a chat they are plots they want to sell by year end and will have contractual conditions to be sold by end of year, if no completion in the time then price goes back up. Probably not the best plots but not bad, we prefer the one we are going after of course and so will look to do some overpay to accelerate the equity and mitigate the risk to certain degree, we did ok on incentives so on balance not so bad.

Crashy_Time

tt07 wrote: »

After a chat they are plots they want to sell by year end and will have contractual conditions to be sold by end of year, if no completion in the time then price goes back up. Probably not the best plots but not bad, we prefer the one we are going after of course and so will look to do some overpay to accelerate the equity and mitigate the risk to certain degree, we did ok on incentives so on balance not so bad.

So the people who didn`t want to buy them at the cheaper price will now turn up to buy? You are just being strung along by this developer IMO, and the bit about equity sounds like one of the lines they might use to get you more comfortable about spending/borrowing a large sum of money for something that will lose value.

tt07

Crashy_Time wrote: »

So the people who didn`t want to buy them at the cheaper price will now turn up to buy? You are just being strung along by this developer IMO, and the bit about equity sounds like one of the lines they might use to get you more comfortable about spending/borrowing a large sum of money for something that will lose value.

Maybe so and don't disagree on the raising price point am sceptical, that and not many people are going to be in position to buy and complete by Dec 22nd, we will see on the 2nd Jan where the price sits come the New Year.

The equity piece isn't from the developer, and didn't discuss that. We need to live somewhere and the loss only materialises at point of sale with more equity comes flexibility from the inevitable cycles of ups and down, bulls and bears, growth and crashes.

thelem

Crashy_Time wrote: »

So the people who didn`t want to buy them at the cheaper price will now turn up to buy? You are just being strung along by this developer IMO, and the bit about equity sounds like one of the lines they might use to get you more comfortable about spending/borrowing a large sum of money for something that will lose value.

Corporate finances don't always follow the "common sense" rules of consumer finances that we're used to. They may have a big incentive to sell these plots by the end of the year, maybe so they are included in their end of year accounts. If the developer is doing well that might earn their CEO a contractual bonus for achieving certain profit levels. If they are struggling then it might be enough to stop their creditors from forcing them into administration.

Having said that, I thought developers didn't generally reduce their prices, because it upsets the people who are already purchasing and may prompt them to ask for a discount... Instead they can offer other incentives that aren't as obvious to other purchasers.