Offer accepted on new build flat - red flag?

PlsProvideAName

Hello all,

I recently made a below-asking offer on a new build flat. The offer was accepted, but additionally the estate agent told me that he had negotiated a slightly lower price
(by £1K) with the developer.  Has anyone ever encountered something like this, and could it be a red flag?  The only reasons that occur to me for this reduction are that mortgage lenders may be valueing similar properties below what I asked, or that the developers are desperate to sell quickly as there may be a glut of similar properties in the area and they're worried I might bail on the purchase in favour of one of the others.  The property (and other similar ones) has been on the market a while and the developer seems very keen to sell it ASAP.

Also, the estate agent has a recommended solicitor which they claim will be able to get the legal work done much more quickly since he's worked on many other properties in the development. There doesn't seem to me to be a clear consensus whether using an estate agent's recommended solicitor is good or bad, though it is fairly tempting in this case.  Does anyone have any thoughts on this?

Marvel1

Use own solicator.

diystarter7

Hi

Re the recommendation of a solicitor, it is your choice and see if they are getting a commission ie the EA

Personally, I would only use a solicitor that was well established, more than 40 years, one I have used before or family has and happy with their work and have a shop front. See a quote and ask about what the quote includes so you have a good idea re the total costs.

Ask the EA why he thinks their solicitor the one they recommended could get things done "faster" I have an idea but let them tell you. 

Personally, I'd choose my own solicitor as  per my first paragraph.



Thnaks

Grizebeck

Yes ask them to detail why this solicitor is recommended.
Then we can laugh at their answer

propertyrental

PlsProvideAName said:

...

Also, the estate agent has a recommended solicitor which they claim will be able to get the legal work done much more quickly since he's worked on many other properties in the development. There doesn't seem to me to be a clear consensus whether using an estate agent's recommended solicitor is good or bad, though it is fairly tempting in this case.  Does anyone have any thoughts on this?

So this solicitor gets considerable business from the developer/agent? A relationship he won't want to jeopardise. So if an issue arises, will he really act in your best interests and risk upsetting the the goose that lays the golden eggs? Will he go the extra mile to look for issues on your behalf?

As for "get the legal work done much more quickly" - maybe, maybe not. But if he does perhaps by not raising those issues.....

Find a conveyencer who is fully independent and on your side.

eddddy

PlsProvideAName said:

Also, the estate agent has a recommended solicitor which they claim will be able to get the legal work done much more quickly since he's worked on many other properties in the development. 

So you are bringing a small amount of business to the solicitor - just one purchase. You'll probably never use them again (or if you do it might be in 5 or more years time when you sell.)

It sounds like the Estate Agent / Developer is bringing them lots of business - by referring lots of buyers to them.  Maybe for this development and other developments as well.

So if there's a bit of a 'disagreement' between you and the developer, or something 'questionable' in the contract - whose side do you think the solicitor might be tempted to take?

You - who is bringing them a tiny amount of business? Or the developer  - who might bring them lots of future business?  There might be scope for a conflict of interest.

GDB2222

It is odd that the agent, who is acting for the seller, has negotiated this discount without being asked. 

Anyone?

My guess is that the developer is just about to lower asking prices, and this will be the new asking price.  If so, there might be a bit more room for negotiation.

user1977

PlsProvideAName said:

There doesn't seem to me to be a clear consensus whether using an estate agent's recommended solicitor is good or bad

I think there is. Who is saying it might be a good idea?

diystarter7

GDB2222 said:

It is odd that the agent, who is acting for the seller, has negotiated this discount without being asked. 

Anyone?

My guess is that the developer is just about to lower asking prices, and this will be the new asking price.  If so, there might be a bit more room for negotiation.

Hi

I too found that very odd though I have never bought new build

However, your guess appears to be spot o as otherwise I've never known/heard that to happen.

Therefore, OP, ask the EA, why the reduction is it becuse sellers going to lowe prices? 

Thnaks

chanz4

ea will be getting about £300 commision that your paying for the solicitor

Mutton_Geoff

PlsProvideAName said:

Also, the estate agent has a recommended solicitor ...There doesn't seem to me to be a clear consensus whether using an estate agent's recommended solicitor is good or bad, though it is fairly tempting in this case.  Does anyone have any thoughts on this?

You might want to read this forum a little more. The consensus is strongly biased towards "a bad idea".