New build price changes?

KAP0365

We are going to look at several developments on Saturday. We have an AIP and are selling our house, we’ve never bought a new build. We were looking at ready-made plots... however we’ve now seen that the original listings have been removed and they’ve been relisted with the price increased by c.30k?! Anyone got any advice on how to approach this? We are just looking this weekend but is it worth mentioning to them or should we wait until we are in a position to offer? Absolute cheek! 

Nickfazz

We completed last Friday and after having worries the house market would drop, on our site it has gone right up. 

ALTSELGREEN

job losses=price drops

Sistergold

I would wait and really let the market settle a bit. The price right now has to change probably downwards but if upwards you don’t want to be the first to jump right in as really at best people are hoping the prices to at least stay at precovid? But upping the price by £30k well? It also depends on how badly you want this particular site and for how long you would stay there as this seems so inflated for now with everyone not knowing which way the market will go? I have never bought offplan/new build but how well do they retain their market value in general these new builds? 

Good luck

csgohan4

ALTSELGREEN said:

job losses=price drops

Demand= Price increase

KAP0365

Thanks all. Turns out when we went to see this specific plots that there were 3 offers against them, 3 people using assisted move against them and another 2 wanting to offer. The pricing is reflecting that and we’ve since seen this replicated across two counties by increases of £10-20k. Also because of the pandemic there is a shortage of ready to go plots so there’s a bottleneck of supply against demand. 

Looking at a smaller independent builder now, will be interesting comparing the build quality as their most expensive, 1800sq foot house is a whopping £200k cheaper than their popular developer neighbour!

Sistergold

KAP0365 said:

Thanks all. Turns out when we went to see this specific plots that there were 3 offers against them, 3 people using assisted move against them and another 2 wanting to offer. The pricing is reflecting that and we’ve since seen this replicated across two counties by increases of £10-20k. Also because of the pandemic there is a shortage of ready to go plots so there’s a bottleneck of supply against demand. 

Looking at a smaller independent builder now, will be interesting comparing the build quality as their most expensive, 1800sq foot house is a whopping £200k cheaper than their popular developer neighbour!

Maybe let the mad rush die down? 

KAP0365

Sistergold said:

KAP0365 said:

Thanks all. Turns out when we went to see this specific plots that there were 3 offers against them, 3 people using assisted move against them and another 2 wanting to offer. The pricing is reflecting that and we’ve since seen this replicated across two counties by increases of £10-20k. Also because of the pandemic there is a shortage of ready to go plots so there’s a bottleneck of supply against demand. 

Looking at a smaller independent builder now, will be interesting comparing the build quality as their most expensive, 1800sq foot house is a whopping £200k cheaper than their popular developer neighbour!

Maybe let the mad rush die down? 

We’ve decided on a different location anyway. We are selling our property so sort of taking advantage of the ‘mad rush’ - but we have time and are exploring other developers. Thanks  

Safe'n'Sound

A big developer in our region has just put their prices up 5% without any reason at all. I mean let's face it, they should be treading water at very minimum. I think they're either just trying it on or more likely upping the price to a daft level now, only to reduce it later and make it look like a massive saving. It's a typical supermarket ploy but on a much larger scale here.

blue_max_3

I'm sure they used the increase to pressure buyers who were hesitating to buy. And it makes existing owners feel better. But whether the valuations support the higher figure may be a problem. 

KAP0365

blue_max_3 said:

I'm sure they used the increase to pressure buyers who were hesitating to buy. And it makes existing owners feel better. But whether the valuations support the higher figure may be a problem. 

This is exactly what our concern was. However, every developer we speak to has told us there’s a lot of scope for movement on the stock plots we are looking at. Luckily the estate agent we are selling with has offered to help us negotiate if we feel they are pressuring us (no extra fees, just trying to help us). When we are speaking to developers and giving them our budget, they are telling us we can see stuff 20-30k above but there is potential for the plots to be within budget. Says a lot about the true value!! We will definitely have to be careful I think to get something for a realistic value.