House for sale or is it?

diving_moose

Hi,
I am currently house hunting and have seen a house i really like, its a brand new build by a small building company. Basically the house is nearly finished just a bit of snagging but has no carpets etc. The asking price is £200,000 which is good for the house your getting however i spoke with the estate agent and i managed to get out of them that the builder wants to sell it in April next year. Its obviously down to tax etc but what i cant understand is why have it on the market if he really wants to sell it in April. I am gonna make an offer on the house as iam happy to wait till april for completion but just wondered if anybody had any idea why the builder would be waiting till april and why put it on the market now.
Cheers Lee

Suzy_M

Probably put it on the market before the announcement about CGT?
Also possibly before HIPs kicked in (but does it apply to new builds)?
If he sells on 6th April 2008 he'll save quite a bit on what he'd pay in tax if he sold on 5th April 2008.

diving_moose

What i cant understand is why put it on the market now why not wait till April if thats when he wants to sell it.
Lee

epz_2

why not just agree an option at a certain price and rent/delay your sale till then,

the reason i say an option to buy is a lot could happen between now and april, should be pretty simple to get a lawyer to draw up a contract between the pair of you saying you have right to buy said house at a mutually agreed price for say a quid and bottle of whisky.

could be a bit of a bonus actually since it would mean you would have months to snag out the place, hell you could even rent the place off him for a few months and try before you buy.

Nenen

Less time delay but we're in a similar situation! We saw a house on Rightmove (also on EA's own site) last Monday. Rang up and asked if we could view this weekend only to be told that we can't as the vendors are painting the kitchen today!!!! Apparently they want to wait until one day next week for viewings but not sure when as they're not sure how long it will take them to finish!!! Apart from the fact that the smell of paint will probably put me off... as will a rushed bodge job:eek: :eek: if that's what it is... why have they marketed it before they are ready????? Surely the EA will have valued it in the original state??? Do they really think a quick flick of a paintbrush in the kitchen will make me more likely to buy? By delaying like this, potentially they could lose me as a buyer as I might see something else before they are 'ready'. In the current uncertainty, if it were me, I wouldn't want to hack off any buyers before they even got through the door!

Goodness only knows what your builder is playing at. I would have thought that any tax saved by waiting until next April would be counterbalanced by the interest he's earn on the money from the sale by selling now. Also, he's risking the market holding steady at least... could be a risky strategy.

diving_moose

As i say i am happy to wait till April if thats what he wants, i take it solicitors can basically get everything sorted but just leave completion date till April and i assume by doing that he wont be able to sell it to anyone else if done this way. Now what do you think i should start offers at if i am going to aid him by waiting till april.
Cheers Lee

m00m00

I certainly wouldn't fix a price now for an april sale. The odds are that prices will have fallen by then, particularly for new builds.

diving_moose

I take it if i dont agree a price now the other option is to see if the builder will allow me first bid in april when he does sell it, and can this be made binding .
lee

diving_moose

In relation to my original post i have been looking at bits and bobs and i think that it must be down to the new capital gains tax change in April. I take it from how it works that this builder has two houses on the same plot one of which is the one i want if he has these two and has also other plots else were it will be more beneficial for him to wait till april next year and just pay the flat rate 18% capital gains tax, am i thinking right.
Lee

m00m00

I wouldn't have thought a builder would be paying capital gains tax, it will more likely be some other kind of tax, and the april date will coincide with tax returns in general.

diving_moose

Okay guy's in relation to my post, the builder will accept an offer and will also except completion date of April for his benefit. The estate agents has said that basically now we would have all the relevant surveys etc done and then the solicitors will just finish completion on the agreed date in April. She states that the deal will be secure and that the builder cannot sell to anyone else and i will have to buy the property a binding contract. The builder has asked for a £1000 deposit which will be held by the estate agent should i pull out of the deal, what i cannot understand is that if the deal is that binding and he cannot sell to anyone else and i have to buy then why is the deposit required.
Cheers Lee