New Build Home - Undervalued without visit

Missbunny14

Hi,

thanks for all your responses. For context as I don’t think I touched on this, we are first time buyers, using help to buy. I defaulted on a credit card in 2017 and finished paying off my debt in 2019 so had to wait for it to have been three years. Big advocate on not giving credit cards to under 20’s! Lol. 

Luckily we do have the savings to cover the short fall but of course we don’t want to if either the surveyor is being tough on us or the builders have priced the property way over the mark. I was happy paying the price for the house, buying the house was never a problem. My issue was with how the process of buying the property transpired, it left me feeling a little bit annoyed. At the end of the day we need to move out and the way the market is at the moment, our choices are limited, hence why we went with a new build (not what we originally wanted) 

thanks again  

lookstraightahead

So what will you do?

Crashy_Time

Missbunny14 said:

Hi,

thanks for all your responses. For context as I don’t think I touched on this, we are first time buyers, using help to buy. I defaulted on a credit card in 2017 and finished paying off my debt in 2019 so had to wait for it to have been three years. Big advocate on not giving credit cards to under 20’s! Lol. 

Luckily we do have the savings to cover the short fall but of course we don’t want to if either the surveyor is being tough on us or the builders have priced the property way over the mark. I was happy paying the price for the house, buying the house was never a problem. My issue was with how the process of buying the property transpired, it left me feeling a little bit annoyed. At the end of the day we need to move out and the way the market is at the moment, our choices are limited, hence why we went with a new build (not what we originally wanted) 

thanks again  

Does PropertyLog show similar price reductions for the area you are buying in?

Crashy_Time

RelievedSheff said:

lookstraightahead said:

GDB2222 said:

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

It depends on the local market. Round here, in London, nobody offers over asking price. The developers the op is dealing with have only sold one other house, so they may have to reduce what they are asking.

I don't know anyone in my circle of friends or family who has paid over asking price, ever. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

Does he regret it now that interest rates are predicted to rise faster than previously predicted and the economic uncertainty around Covid has returned?

RelievedSheff

Crashy_Time said:

RelievedSheff said:

lookstraightahead said:

GDB2222 said:

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

It depends on the local market. Round here, in London, nobody offers over asking price. The developers the op is dealing with have only sold one other house, so they may have to reduce what they are asking.

I don't know anyone in my circle of friends or family who has paid over asking price, ever. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

Does he regret it now that interest rates are predicted to rise faster than previously predicted and the economic uncertainty around Covid has returned?

No. He is a cash buyer so interest rates are of no concern to him.

Neither is economic uncertainty. He is retired, made good provisions for his retirement and will most probably see out his day's in this property. 

Crashy_Time

RelievedSheff said:

Crashy_Time said:

RelievedSheff said:

lookstraightahead said:

GDB2222 said:

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

It depends on the local market. Round here, in London, nobody offers over asking price. The developers the op is dealing with have only sold one other house, so they may have to reduce what they are asking.

I don't know anyone in my circle of friends or family who has paid over asking price, ever. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

Does he regret it now that interest rates are predicted to rise faster than previously predicted and the economic uncertainty around Covid has returned?

No. He is a cash buyer so interest rates are of no concern to him.

Neither is economic uncertainty. He is retired, made good provisions for his retirement and will most probably see out his day's in this property. 

That is misleading, it isn`t because he is a cash buyer that interest rates are of no concern to him.

Crashy_Time

Anybody else seeing more realistic valuations on new-builds?

980233

Crashy_Time said:

Anybody else seeing more realistic valuations on new-builds?

Depends what you mean as realistic. I have just bought in Wokingham, north of 680K and no down valuation by lender.

Crashy_Time

980233 said:

Crashy_Time said:

Anybody else seeing more realistic valuations on new-builds?

Depends what you mean as realistic. I have just bought in Wokingham, north of 680K and no down valuation by lender.

This seller has "down-valued" themselves, they started at 775k, which I think is frankly ridiculous.

https://www.rightmove.co.uk/properties/90552079#/?channel=RES_BUY

Crashy_Time

They knocked 60k off in a couple of weeks, I would call that "motivated".