Cala Homes - Guaranteed Buyers Scheme

MazChan

Hi,

Can anyone share their experiences and views on Cala Homes - Guaranteed Buyers Scheme?
Thanks.

ReadySteadyPop

https://www.pressandjournal.co.uk/fp/business/local/6830710/aberdeen-cala-homes-profits-drop-70m-amid-ownership-shake-up/

Looks like they are dropping prices to sell by about 30 - 40k, they say sales are steady but sales of new-build in London and parts of England are down by about 60%, the scheme just sounds like the standard "incentive" scheme used by developers but with a "We buy any home" type twist where they just do what the fast sale companies do and offer you a back up price if you can`t find buyers via the traditional route, they are just trying to exploit a weak market to flog some of their overpriced debt boxes in my opinion.

https://www.aberdeenlive.news/news/aberdeen-news/half-aberdeen-homes-drop-value-10353971

sheramber

ReadySteadyPop said:

https://www.pressandjournal.co.uk/fp/business/local/6830710/aberdeen-cala-homes-profits-drop-70m-amid-ownership-shake-up/

Looks like they are dropping prices to sell by about 30 - 40k, they say sales are steady but sales of new-build in London and parts of England are down by about 60%, the scheme just sounds like the standard "incentive" scheme used by developers but with a "We buy any home" type twist where they just do what the fast sale companies do and offer you a back up price if you can`t find buyers via the traditional route, they are just trying to exploit a weak market to flog some of their overpriced debt boxes in my opinion.

https://www.aberdeenlive.news/news/aberdeen-news/half-aberdeen-homes-drop-value-10353971

The scheme has been in operation since at least 2021, so not a recent innovation.

why refer to London and quote prices in Aberdeen , which is a special case . House prices rose when there was demand due to the offshore work. As a result they were overpriced. 

When off shore work reduced the amount of workers selling to move on resulting in prices collapsing. 

In my area of central Scotland houses are selling within 2 weeks of going on the market.

If you want to buy be prepared to offer 15% - 20% over the home report price. 

ReadySteadyPop

sheramber said:

ReadySteadyPop said:

https://www.pressandjournal.co.uk/fp/business/local/6830710/aberdeen-cala-homes-profits-drop-70m-amid-ownership-shake-up/

Looks like they are dropping prices to sell by about 30 - 40k, they say sales are steady but sales of new-build in London and parts of England are down by about 60%, the scheme just sounds like the standard "incentive" scheme used by developers but with a "We buy any home" type twist where they just do what the fast sale companies do and offer you a back up price if you can`t find buyers via the traditional route, they are just trying to exploit a weak market to flog some of their overpriced debt boxes in my opinion.

https://www.aberdeenlive.news/news/aberdeen-news/half-aberdeen-homes-drop-value-10353971

The scheme has been in operation since at least 2021, so not a recent innovation.

why refer to London and quote prices in Aberdeen , which is a special case . House prices rose when there was demand due to the offshore work. As a result they were overpriced. 

When off shore work reduced the amount of workers selling to move on resulting in prices collapsing. 

In my area of central Scotland houses are selling within 2 weeks of going on the market.

If you want to buy be prepared to offer 15% - 20% over the home report price. 

And be prepared to regret it later?

eddddy

MazChan said:

Hi,

Can anyone share their experiences and views on Cala Homes - Guaranteed Buyers Scheme?
Thanks.

I guess the key question is the "fall back" price that the developer will pay for your property, if you can't sell it using your own estate agent.


TBH, it's likely to be difficult to find your own buyer - because you would probably have to impose the same terms on your buyer, as the developer imposes on you.

Typically, those terms might include...

• No fixed completion date - just a target completion date, which might slip by months (maybe meaning your buyer's mortgage offer expires)

• Completion on notice - i.e. You and your buyer are only told 10 days in advance that you have to complete, and move.

• Longstop date - if the house your buying isn't ready by a specific date, you can back out of your purchase, meaning that your buyer can no longer buy your property

(Plus you have to be careful with your estate agent's contract. You'll need to make sure you terminate it on or before the "back up date" - including the notice period. Otherwise you might have to pay their full fee. Maybe get this all agreed before you sign the estate agent's contract.)



Edit to add...

Or if you have already signed up with an estate agent, the estate agent might argue that the developer was introduced during their contract period - so you have to pay the estate agent their fee.

Herzlos

ReadySteadyPop said:

And be prepared to regret it later?

Regret it more than losing out?

sheramber

ReadySteadyPop said:

sheramber said:

ReadySteadyPop said:

https://www.pressandjournal.co.uk/fp/business/local/6830710/aberdeen-cala-homes-profits-drop-70m-amid-ownership-shake-up/

Looks like they are dropping prices to sell by about 30 - 40k, they say sales are steady but sales of new-build in London and parts of England are down by about 60%, the scheme just sounds like the standard "incentive" scheme used by developers but with a "We buy any home" type twist where they just do what the fast sale companies do and offer you a back up price if you can`t find buyers via the traditional route, they are just trying to exploit a weak market to flog some of their overpriced debt boxes in my opinion.

https://www.aberdeenlive.news/news/aberdeen-news/half-aberdeen-homes-drop-value-10353971

The scheme has been in operation since at least 2021, so not a recent innovation.

why refer to London and quote prices in Aberdeen , which is a special case . House prices rose when there was demand due to the offshore work. As a result they were overpriced. 

When off shore work reduced the amount of workers selling to move on resulting in prices collapsing. 

In my area of central Scotland houses are selling within 2 weeks of going on the market.

If you want to buy be prepared to offer 15% - 20% over the home report price. 

And be prepared to regret it later?

Been like that for as long as my 78 years can remember.

Living in a popular, commuter area for a city  has its disadvantages.

Hoses 10 miles away are cheaper but folks don't want to live there.

We have people advertising for houses going to br coming on the market as they keep missing out on the advertised ones.

ReadySteadyPop

Herzlos said:

ReadySteadyPop said:

And be prepared to regret it later?

Regret it more than losing out?

Trying to avoid "losing out" by taking on multi-decade debt on a new-build in Aberdeen or London is starting to unravel as anything approaching a sensible plan, you are losing out much more by being attached to the house and the debt.

ReadySteadyPop

sheramber said:

ReadySteadyPop said:

sheramber said:

ReadySteadyPop said:

https://www.pressandjournal.co.uk/fp/business/local/6830710/aberdeen-cala-homes-profits-drop-70m-amid-ownership-shake-up/

Looks like they are dropping prices to sell by about 30 - 40k, they say sales are steady but sales of new-build in London and parts of England are down by about 60%, the scheme just sounds like the standard "incentive" scheme used by developers but with a "We buy any home" type twist where they just do what the fast sale companies do and offer you a back up price if you can`t find buyers via the traditional route, they are just trying to exploit a weak market to flog some of their overpriced debt boxes in my opinion.

https://www.aberdeenlive.news/news/aberdeen-news/half-aberdeen-homes-drop-value-10353971

The scheme has been in operation since at least 2021, so not a recent innovation.

why refer to London and quote prices in Aberdeen , which is a special case . House prices rose when there was demand due to the offshore work. As a result they were overpriced. 

When off shore work reduced the amount of workers selling to move on resulting in prices collapsing. 

In my area of central Scotland houses are selling within 2 weeks of going on the market.

If you want to buy be prepared to offer 15% - 20% over the home report price. 

And be prepared to regret it later?

Been like that for as long as my 78 years can remember.

Living in a popular, commuter area for a city  has its disadvantages.

Hoses 10 miles away are cheaper but folks don't want to live there.

We have people advertising for houses going to br coming on the market as they keep missing out on the advertised ones.

Paying 20% over the Home Report valuation out of your savings or borrowed from family etc. money is only going to end in tears, just takes an uptick in unemployment or mortgage rates for example to make "sought after" areas not so sought after - See Aberdeen/London New-Build in "Massive Demand!" areas for an example of how it can all unwind.

sheramber

ReadySteadyPop said:

sheramber said:

ReadySteadyPop said:

sheramber said:

ReadySteadyPop said:

https://www.pressandjournal.co.uk/fp/business/local/6830710/aberdeen-cala-homes-profits-drop-70m-amid-ownership-shake-up/

Looks like they are dropping prices to sell by about 30 - 40k, they say sales are steady but sales of new-build in London and parts of England are down by about 60%, the scheme just sounds like the standard "incentive" scheme used by developers but with a "We buy any home" type twist where they just do what the fast sale companies do and offer you a back up price if you can`t find buyers via the traditional route, they are just trying to exploit a weak market to flog some of their overpriced debt boxes in my opinion.

https://www.aberdeenlive.news/news/aberdeen-news/half-aberdeen-homes-drop-value-10353971

The scheme has been in operation since at least 2021, so not a recent innovation.

why refer to London and quote prices in Aberdeen , which is a special case . House prices rose when there was demand due to the offshore work. As a result they were overpriced. 

When off shore work reduced the amount of workers selling to move on resulting in prices collapsing. 

In my area of central Scotland houses are selling within 2 weeks of going on the market.

If you want to buy be prepared to offer 15% - 20% over the home report price. 

And be prepared to regret it later?

Been like that for as long as my 78 years can remember.

Living in a popular, commuter area for a city  has its disadvantages.

Hoses 10 miles away are cheaper but folks don't want to live there.

We have people advertising for houses going to br coming on the market as they keep missing out on the advertised ones.

Paying 20% over the Home Report valuation out of your savings or borrowed from family etc. money is only going to end in tears, just takes an uptick in unemployment or mortgage rates for example to make "sought after" areas not so sought after - See Aberdeen/London New-Build in "Massive Demand!" areas for an example of how it can all unwind.

But sales in this area do not depend on one employment sector. 

With the constant demand for houses,  selling is not a problem.

Today there is a post on the locl facebook page from someone asking  for any  4 bedroom house coming onto the market .

It is a popular area convenient for range of a wide employments  in at least hal iof Scotland.

jennifernil

A house in a sought after area of west Glasgow, on the market at O/O £895,000, recently went for £1,113,400.   I believe the home report was around £950,000.
There is money about in the most desirable areas.