Redrow - Varying Prices

joel77

I was just wanting some advice in how Redrow, can charge upto 20k more for for homes finished to exactly same specification on a development in the space of 6 months.  I unfortunately paid the higher price, then only 1 month later property next door sold for 10k less and then his next door neighbour a further 10k less a few months later.

RelievedSheff

They sell them for whatever someone is willing to pay for them.

Redrow are no different to any other developers in this respect.

We paid £210k for our David Wilson Homes house, plots the same house type also sold for £235k, £225k, £220k and £205k.

wargrip

I can answer this having just gone through the process of buying a Redrow home and being friendly with the developer - the prices vary based on items that are not related to the "specification" - e.g. you would pay more for the same house type if it had:

• Larger garden
• Private/non-shared driveway
• Greenery frontage

And these are beyond the usual variances in a given house type such as the brick type (stone vs red brick etc)

Carl2510

I have bought a Rowland Home, and they go up by £500 every time a new house is released.

AdrianC

joel77 said:

I was just wanting some advice in how Redrow, can charge upto 20k more for for homes finished to exactly same specification on a development in the space of 6 months.  I unfortunately paid the higher price, then only 1 month later property next door sold for 10k less and then his next door neighbour a further 10k less a few months later.

If more people had been willing to pay your price, then they wouldn't have had to reduce the price to shift them.

But if everybody held out for the price to be reduced, they may have missed out on reserving the plot they wanted, or any plot.

moneysavinghero

You were happy to pay the advertised price. Not enough other people were willing to pay the advertised price, so after a month they dropped the price to try and attract more interest. A few months later they still had some houses to shift so they dropped the price further.

No different to how any other business operates. That flashy new TV might be £500 when it just comes out. Some will want it straight away and will pay the £500. Others might be willing to pay £400 for it. Most will wait until it comes down to £300.

eddddy

Their pricing strategy will be based around getting the best prices they can for their properties.

Depending on market conditions, there may be an element of setting the prices high initially - to sell to those people who are really keen on the development and prepared to pay more. Then gradually drop the prices to attract further buyers.

Or it could be a downward trend in prices locally.

Or a competitor's development has come 'on-stream' nearby and they needed to cut prices to compete.

Or maybe the other plots are less desirable, so they set the prices a bit lower.

caprikid1

Early purchasers get to buy the exact plot they want, sometimes they get a discount for being early, putting up with the rest of the estate being built, sometimes they pay more to get the best plot, more secluded, away from the main entrance, better parking etc etc, no too plots are evert the same, south facing gardens is another.

ekumi00

I have noticed this myself with Taylor Wimpey. I bought a house for £467,000 whereas others paid £480,000-£490,000 for the same building. Truthfully some did have bigger gardens etc. But now if you want to buy my house type, they are being advertised for £535,000 & £545,000 which I feel is massively overpriced. I just hope people do their research before commiting. 

HanPop

Our house was the last of its type to be sold on our development and we paid about £10,000 less than others did and we have a much bigger garden - was just luck I guess. However I feel that our style of house was cheap at full price for what you get anyway and has gone up in price when you compare it to everything else on the market around here. Funnily enough our developer is building our house type in another part of town that has a better school catchment and it costs £80,000 more to buy 😱

joel77

Just another note when valuation came in it was valued at 300k, should of refused to complete until they reduced price.   Just also means that now house is worth 20K less, as people have seen what others sold for.  Leaving me in a difficult position while trying to sell.
Its strange as other developers house prices within short distance have been increasing and this site prices reducing. 
Would anyone recommend advising mortgage company that valuation is incorrect?