Looking for advice about small independent property developers

Bazooka_joe

Hi all,
sorry it this is naive or asking for the impossible.
So i am expecting redundancy around next March and will considering moving shortly after that to Poole. Property prices with views of the sea are eye wateringly expensive down there.
I have seen a property down there that I like. It’s a new build by a small local based developer and has been on the market for over a year now and hasn’t sold. It is one of two and the first one sold within two months of being built but the second one hasn’t sold. I know no one has a crystal ball but taking into account the perception that there may be a deep recession, and property prices may drop as much as 10% over the next nine months, does anyone happen to know or have experience of smaller developers accepting offers of less than 90% of  the perceived value. I do realise that it depends on how buoyant they are financially and what they need to do to balance the books at the end of their financial year. 

But if the property is still on the market early next year just before their financial year end, then regarding figures, the property is currently priced at £865k since June 2019 and my budget is around £750k so that offer would be 86% of the current market value. I know that if I go to the estate agents with that kind of offer I will probably be laughed out of their office because estate agents are after as much commission as they can but may be a direct conversation with the developer would be the best way forward

[Deleted User]

You can offer.  All they can say is no.  If they laugh, they aren't much good as EA's (an EA should be thinking how they can get you to offer more if the offer is unacceptable).  I'd hope you'd be a bit more hard skinned than that if buying a £750k property.  You could also be viewed as a hard nosed businessman.

Thrugelmir

Bazooka_joe said:

 I know that if I go to the estate agents with that kind of offer I will probably be laughed out of their office because estate agents are after as much commission as they can 

Not that old chesnut. Do you think that the EA would prefer 1% of £700k or 1% of nothing............

Ring the EA and have a chat. After all that's what they are being paid for. 

Bazooka_joe

My thoughts were that as the property has been on the market for over a year that a discussion with the developers and they could withdraw it from the estate agents and do a direct deal with myself and save on estate agent fees

lincroft1710

If you have viewed the property via the EA, then if you buy the EA will rightly expect his commission from the developer

Titus_Wadd

Why has the second house not sold after the first one went quite quickly? 

Go and speak to the people who live in the first house and you may find the answer.  It may be market-related, Covid/Bexit effect or maybe the neighbours will put you off.  I'm not saying they themselves are "unusual" types.  But maybe the developer retains a managing control of some scrap of communal land and charges a ridiculous amount to mow a grass verge 4 times a year.  Or, as we've found living alongside the builder of our house, they have issues understanding simple legal matters, problems with personal space and enjoys intimidating folk who don't want anything to do with him.

There'll be a reason, so if the Estate Agent can't imagine what could be holding people back, I'd recommend turning detective.  If they've changed agents since it first went up for sale maybe speak to their first agent; I've found they can be rather candid once their livelihood doesn't depend on that particular sale.

Then speak to the current agent and ask if the vendor might be lowering the price any time soon.  Then you're £750k offer will represent a lower percentage drop.

I know I'm grumpy and bitter at the moment, but it can't do any harm to do some digging, good luck. 

Bazooka_joe

I am actually visiting house on friday.  Not through the estate agent but just to drive by and i was planning to knock on the door of the first house..  Strangely the first house i don't think is occupied so it may be that it was bought as an investment. However though it sold nearly a year ago, on right move it is still showing as STC....after nearly a year!!!    The second house is being sold by a different estate agent to the first house for some reason or other.  I will call the estate agent who sold the first house and try and find out what happened with the first property.