Reserved New Build is price likely to fall

Ronny152

We have reserved a new build house just interested if anyone believes what impact the corona virus situation will have on our purchase will the price likely drop? 

Slithery

You have reserved the property at its current price. If you wish to try and renegotiate then that's up to you but the developer doesn't have to agree and you may lose your deposit if you pull out of the purchase.

graphs

Yes. Big time. Negotiate hard and be prepared to walk away. Both outcomes would be good for you. Paying current prices will not.

blue_max_3

Did you reserve at asking price? In direct answer to your query, no, it won't drop. Why would the seller reduce the price?

numbercruncher8

Without more specifics any real reply like 'it's gonna fall 20%' or 'it's not going to drop at all' is a bit moronic.....how is anyone going to know? It's just people refusing to be objective and pretending that their own opinion reflects the whole market.

If the development is very expensive for the area and has multiple units that aren't shifting, the chances are good. On the other hand if everything is reserved and its decently priced relative to other properties the chances are smaller.

There isn't a single simplistic formula to say either way.

Windofchange

Exactly as above. Don't listen to anyone along the lines of only a fool would buy now, or prices are going to crash 25%. Nobody knows, and as there basically isn't a property market at the moment, it's going to take 12 - 18 months or so to find out. The property is worth what someone is going to pay for it. You thought it was worth the money before COVID. If you don't think it is now then you have your answer. A new build, especially if you've used help to buy, will go down in price the minute you turn the front door key anyway.

Slithery

graphs said:

Yes. Big time. Negotiate hard and be prepared to walk away. Both outcomes would be good for you. Paying current prices will not.

Meh. I really don't believe that.
Properties in my area are still going to completion for pre-CV prices...

numbercruncher8

Here's one that popped up today for me
https://www.rightmove.co.uk/property-for-sale/property-66875832.html 
Imagine going in at asking price on that believing that this was the correct price because the developer set it at it, obviously comparing to the rest of the area it was quite overpriced. It's come down £75,000 in one go and is more in line.
It surprises me at the mentality: 'this is happening in my area, but so I refuse to believe the same isn't happening elsewhere'...
If I were to use this example as evidence that prices are gonna fall I would be called out as an idiot..... it just underscores that it depends on specifics.

Bossypants

If you've already reserved, the price you've reserved at won't spontaneously fall (or rise) without active renegotiation. You're free to try that, though you may not be successful, in which case you'll need to decide whether to stick with the agreed price or walk away entirely.

Crashy_Time

Certainly not a time to feel rushed (why?) into buying a NB IMO.

Crashy_Time

numbercruncher8 said:

Here's one that popped up today for me
https://www.rightmove.co.uk/property-for-sale/property-66875832.html 
Imagine going in at asking price on that believing that this was the correct price because the developer set it at it, obviously comparing to the rest of the area it was quite overpriced. It's come down £75,000 in one go and is more in line.
It surprises me at the mentality: 'this is happening in my area, but so I refuse to believe the same isn't happening elsewhere'...
If I were to use this example as evidence that prices are gonna fall I would be called out as an idiot..... it just underscores that it depends on specifics.

No words for that one, feel sort of ill at the thought of someone buying it TBH.