Help To Buy New Builds Properties... Are prices really inflated?

RPF1992

Hi All,
We've recently put a reservation deposit down on a new build in London, under the Help to Buy Scheme.

After a couple of days, back and forward with the estate agent and developer, we managed to get the price down by 8% from the listed price (all other similar properties in this development sold for asking price). This obviously fits within our budget and we are really happy with the reduction but having seen stories of HTB property prices being inflated, I am wondering if we have been given a good deal or if we have simply managed to get the price down to its realistic market price or even worse... are we still overpaying?!

Just wondered if anyone has any insight into the pricing strategies of new builds or if anyone has any stories to share, that may be of some insight?

Thanks in advance!

blue_max_3

Be sure to tell all your neighbours 

MobileSaver

RPF1992 said:

(all other similar properties in this development sold for asking price).

How do you know what price all the other similar properties sold for?

gagahouse

MobileSaver said:

RPF1992 said:

(all other similar properties in this development sold for asking price).

How do you know what price all the other similar properties sold for?

Houseprices.io - can take up to 2 months after completion for prices to update, just put in neighbour's address and details will come up

RelievedSheff

MobileSaver said:

RPF1992 said:

(all other similar properties in this development sold for asking price).

How do you know what price all the other similar properties sold for?

The Land Registry.

RelievedSheff

RPF1992 said:

Hi All,
We've recently put a reservation deposit down on a new build in London, under the Help to Buy Scheme.

After a couple of days, back and forward with the estate agent and developer, we managed to get the price down by 8% from the listed price (all other similar properties in this development sold for asking price). This obviously fits within our budget and we are really happy with the reduction but having seen stories of HTB property prices being inflated, I am wondering if we have been given a good deal or if we have simply managed to get the price down to its realistic market price or even worse... are we still overpaying?!

Just wondered if anyone has any insight into the pricing strategies of new builds or if anyone has any stories to share, that may be of some insight?

Thanks in advance!

If you look at the sold prices for any new build estate the sold prices for the same house types will vary.

On our estate the same house type as we bought have sold for between £210k and £235k.

There are a pair of semi's opposite us and one was £10k cheaper than the other.

comeandgo

You may know the price paid but you don't know who paid stamp duty and what upgrades they got.

RPF1992

comeandgo said:

You may know the price paid but you don't know who paid stamp duty and what upgrades they got.

You are absolutely right but even with stamp duty incentives and additional upgrades, I can't imagine it being anywhere near the £50,000 we got knocked off. A family friend, who is a surveyor, reckons it may be simply due to it being the last property to sell and the developer just wanting to wind up on that particular development... Who knows, I guess?!

rachel230

You will always pay over the odds for a new build. 
Also should property values go up (probably go down first in many areas), the past few years show statistically that new builds increase at a smaller percentage rate.

AdrianC

If the prices were "inflated", why would you buy there rather than somewhere else?

numbercruncher8

If you want the best idea, why not post where it is... more than likely there will be someone with a good view of the area.
In my view new builds will always try to charge as much as they can, discounting the price via promotions to start with, only cutting the price later. So while everything can be sold for asking price, the perks given can be reasonably significant, ie paid stamp duty.

As for being overpriced, most are, especially in London (but some areas more so than others). Why not compare it to other new-ish builds and then older style flats. There will of course be a premium attached to the new build - but it's your call to say what is excessive, as the new build will contain all the nicer fittings.

So for instance near me the asking price of a 3-year old new build is £475,000. The asking price of an older flat of similar sqft is £275,000. A premium of £200k for me makes the new build overpriced. 

I should add that those new builds are priced that way because people paid a similar price for them a few years ago. So you need to consider the worst case scenario for yourself. In the example that I used, the flats on the development all went extremely quickly. But now none are shifting, because the new buyers cannot use HTB.