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New build developer
Laursi090
Posts: 1 Newbie
Hi
We are very interested in buying a new build from a large well known property developer.
Only 1/3 of the development has been released. Some are built and lived in.
There are 2 houses in our house style that have been reserved. And they have just realised a third the one in which we are interested.
The developers have told us that the original house in the style we liked was sold for 15k less then what they are asking for the newly reased house.
When asked why the price hike we were told that's just the way the development works and all houses go up in price the further into the build.
We've asked for incentives to. Make. Up for this but they are not too keen. They have offered 2.5k for stamp duty and 1k towards the finishing touches. They have refused carpets etc.
They have said the. Houses are selling really well. I'm unsure if this is true.
Are we being ripped off!?
We are very interested in buying a new build from a large well known property developer.
Only 1/3 of the development has been released. Some are built and lived in.
There are 2 houses in our house style that have been reserved. And they have just realised a third the one in which we are interested.
The developers have told us that the original house in the style we liked was sold for 15k less then what they are asking for the newly reased house.
When asked why the price hike we were told that's just the way the development works and all houses go up in price the further into the build.
We've asked for incentives to. Make. Up for this but they are not too keen. They have offered 2.5k for stamp duty and 1k towards the finishing touches. They have refused carpets etc.
They have said the. Houses are selling really well. I'm unsure if this is true.
Are we being ripped off!?
0
Comments
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No. But only because like most posters here you don't know what that phrase means.
You have a free choice to buy or not.
p.s. its certainly not a "rule" that subsequent phase houses go up in price, someone was on here a few weeks ago bemoaning that the newly released houses on an estate were less than the one his son has signed up for but not even moved into yet. Round where I live where they are building on anything flat even if its seemingly in floodplain, prices of new builds have come down and building has slowed. Each area is different.0 -
Look up the reviews of the house builder - though they get lots of negative ones removed! Research thoroughly...and be careful. Things aren't always what they seem!0
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Does this developer begin with a P?
If so, you probably are being ripped off. They're an absolute bunch of cowboys
(From personal experience)0 -
Sounds like a standard approach by the developer to me!
A lot of interest in the houses + usual house price inflation = a more expensive house in a later phase of development.
You don't mention how long has passed since the original houses were sold and the time in which 'your' house will likely be completed. If it is 12 months and house prices are increasing 3% per year in your area, then how is the developer increasing prices anything more than simple market economics? Why shouldn't they?
"We've asked for incentives to. Make. Up for this"
The developer owes you nothing. You're not the expert in housing market economics here, they are. They're the experts in how to price new builds.
Your bargaining power is only as strong as the competitive housing market allows it to be. The more interest in a house, the less bargining power you have.
If you really love the house and you've managed to get some sort of deal (which is good since there is demand for the houses as you say), then just go for it. To miss out for the sake of pride is silly. Especially seeing as you'll probably be the first one to expect your new home to rise in value in subsequent years. You can't have your cake and eat it!
Good luck with whatever you choose to do!0 -
I had the opposite. The house style I ended up buying from a developer was reduced in price by a whopping £30k. I suspect this is because they realised they were WAY overpriced and banks probably weren't giving buyers the valuation they needed. Due to this reduction, they did cancel all the original incentives.
However, we still got stamp duty paid and full flooring throughout!
I don't think the deal you're getting sounds that bad. You could try to push for flooring but, if the houses really are selling ok, they won't budge.
ps if its the house-builder everyone is referring to, i would also avoid.0
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