Trouble finding buyers for New Build

AdrianC

You have the disadvantages of new build - restrictive covenants, estate maintenance costs, disruption while the development is completed - with none of the advantages - finish-to-spec, shiny-shiny-unused, HtB.

So you have to compete on PRICE, PRICE, PRICE.

pinkteapot

You're not selling a new build. You need to be significantly cheaper than the equivalent brand new houses, or people will just go for those. 

RelievedSheff

moneysavinghero said:

Your home is not a new build - it is a three year old building. Are you trying to sell for similar prices to the remaining true new builds on the site? Are you trying to sell for more than you paid for the property?

New builds have a new build premium added to the price. Once you have lived in the house that is gone. After 3 years you should not be expecting to sell for more than you what you paid for it. Especially when there are brand new plots available on the same site. Your only edge is price.

That isn't strictly true. It does depend on what house prices have done in the area since you bought brand new.

Of the handful of properties that have come for resale here all but one have achieved more than they were originally bought from the developers for 2-3 years ago. The one that didn't was part exchanged presumably against another new build.

It has helped that the developers have greatly increased the price of the brand new houses which has meant that the resales can be marketed for more than their original purchase price and still be an attractive purchase.

numbercruncher8

Not sure what is wrong with what was said, it's applied to the situation.

It is fact that it isn't a new build now. Also fact that it will compare unfavourably to those which are new, the obvious thing being that the one for sale isn't new, and the other being that others have an incentive to buy it on it.

New builds also have a premium attached to them. If nothing happens in the market then invariably they are worth less due to the premium disappearing. If the market increases in price, then they will be worth more, but that doesn't change the fact that there was a premium on them.

But your own anecdotal experience is likely to be of no use to OP.... if the market had increased in price, why would they even be posting? I would guess from the tone of the post if there was a buyer who could simply offer them what was paid they would snap their hands off.... too often 'can't sell' translates to 'won't take a loss'.

OldMusicGuy

We've just bought a new build and I can only confirm what others have said. You are in the worst position that you have the potential disadvantages of a new build with none of the advantages. The house is too "old" for it to feel brand new, and in fact after a year or two most new builds will start to look a bit scruffy with marks on the paintwork and settlement cracks showing. It may be worth touching those up if you have them.  

One thing that might help is the garden. That's an issue with new builds, especially volume builders. They are usually waterlogged squares of mud or rubbish turf. If you have a nice mature garden that doesn't have these problems, that might make it more attractive, especially to families and people who want a nice garden but don't want to spend extra to get it.

The former show house on our development was sold 6 months after the first buyers bought it. They put it on the market for 10% ABOVE the asking price for the same brand new house. They had to drop the price to the same as the new builds to sell it, but one selling point was definitely the garden, which had been nicely landscaped and planted by the developer. Unlike our soggy square of turf!

Crashy_Time

RelievedSheff said:

moneysavinghero said:

Your home is not a new build - it is a three year old building. Are you trying to sell for similar prices to the remaining true new builds on the site? Are you trying to sell for more than you paid for the property?

New builds have a new build premium added to the price. Once you have lived in the house that is gone. After 3 years you should not be expecting to sell for more than you what you paid for it. Especially when there are brand new plots available on the same site. Your only edge is price.

That isn't strictly true. It does depend on what house prices have done in the area since you bought brand new.

Of the handful of properties that have come for resale here all but one have achieved more than they were originally bought from the developers for 2-3 years ago. The one that didn't was part exchanged presumably against another new build.

It has helped that the developers have greatly increased the price of the brand new houses which has meant that the resales can be marketed for more than their original purchase price and still be an attractive purchase.

That doesn`t really make sense, especially in the context of the thread?

HanPop

I think the problem is trying to sell on an estate that will not be finished for a long time, especially if they are selling the exact same house brand new and with incentives. How does your price compare to the brand new ones? As developers put them up on every phase. 

I do agree that in this situation that it will be hard to sell. The best thing that you can do is make it look as show homey as possible in your photographs, as people interested in a newish house will like this. Have you upgraded anything yourselves so it doesn’t look the same as everybody else’s? The garden is a big deal, did you get a good plot that isn’t terribly overlooked or have you done any landscaping to it? I think a profit can be made in some situations with new builds (we got a good price for ours in comparison to similar properties in the area so it didn’t start off as overpriced/the estate was already finished when we moved in/we have a very big garden for a new build that isn’t overlooked/have car parking for 3 cars/we’ve also spent a lot landscaping the garden etc) however I think a profit in your situation will be hard so the best way to sell it is present it as best you can and undercut the developers price by as much as you can afford to.

kasqueak

I think the other answers have hit the nail on the head when talking about price. Especially if you’re on a development that is yet to be finished. There are still “new” ones available with the incentives like help to buy etc. If your house is the same or only slightly cheaper than the brand new ones available your house will be less attractive. 

Also, personally I feel put off with new builds being sold when they’re only 2-3 years old and the development is still being built. I would think “why do they want to move already” -
maybe noisy neighbours, noisy construction work, bad smell on the development - who knows! But it certainly gets people thinking why do you want to move on so soon. 

I would try and present it best you can. Make the garden a selling point. Clear clutter. And most importantly - be competitive with the price. 

Hope you get a sale soon. 

rik111

Apart from the price which you stated in your original post, make sure you get your story straight as to why you are selling after only 2 years..... I would immediately be suspicious !

Crashy_Time

kasqueak said:

I think the other answers have hit the nail on the head when talking about price. Especially if you’re on a development that is yet to be finished. There are still “new” ones available with the incentives like help to buy etc. If your house is the same or only slightly cheaper than the brand new ones available your house will be less attractive. 

Also, personally I feel put off with new builds being sold when they’re only 2-3 years old and the development is still being built. I would think “why do they want to move already” -
maybe noisy neighbours, noisy construction work, bad smell on the development - who knows! But it certainly gets people thinking why do you want to move on so soon. 

I would try and present it best you can. Make the garden a selling point. Clear clutter. And most importantly - be competitive with the price. 

Hope you get a sale soon. 

Good point, price is the thing that will shift it in the end though.