PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Looking for advice about small independent property developers

Options
Bazooka_joe
Bazooka_joe Posts: 15 Forumite
Fourth Anniversary 10 Posts
edited 16 July 2020 at 12:44PM in House buying, renting & selling
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

Comments

  • [Deleted User]
    [Deleted User] Posts: 7,323 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 16 July 2020 at 12:52PM
    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
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
     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
    Bazooka_joe Posts: 15 Forumite
    Fourth Anniversary 10 Posts
    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
    lincroft1710 Posts: 18,863 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If you have viewed the property via the EA, then if you buy the EA will rightly expect his commission from the developer
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • Titus_Wadd
    Titus_Wadd Posts: 512 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    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. 
  • 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.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.