Interesting E-mail from Barratts

Dunstan_2

Had an interesting e-mail from Barratt homes yesterday, saying that they would pay market value for our house if we buy a Barratt Home, and they will pay our mortgage for a year (interest only I believe) if we complete before the end of June.

Now, a new-build is something that I have never really considered before, but we are struggling to sell our house - it has been on the market since January, with only 1 viewing - so it is something that may be worth considering, as it would be a quick way of leaving behind our rubbish neighbours who are driving us mad.

What are people's thoughts on this? If we saw it as a short-term solution and planned to sell in 2-3 years, do you think it may be hard to sell a new-build? Are Barratt likely to give us full market value for the house, or what "they deem" to be market value? In general, what sort of quality are Barratt Homes? All these questions.... just thought I would ask opinions here before embarking on loads of research.

Jonbvn

They will pay market value for your house, but expect you to pay massively over market value for their new build, which will drop significantly in value the moment you cross the threshold.

Given the ongoing crash, NB properties are expected to fall in price more than other types of property.

tbs624

Hmmm- Barratts. Have a look here for a snapshot of people's experiences: http://www.grumbletext.co.uk/vt.php?t=110

poppy10_2

Dunstan wrote: »

Had an interesting e-mail from Barratt homes yesterday, saying that they would pay market value for our house if we buy a Barratt Home, and they will pay our mortgage for a year (interest only I believe) if we complete before the end of June.

Wow. They are getting increasingly desperate. Anything to avoid lowering the asking price.

Their new-builds are vastly overprice
ds, and paying your mortgage for a year will not compensate for this. Also, their assessment of the "market value" of your house will be significantly lower than you'd expect.

gemima

Hi,

Firstly, Barratts end of year figures are due at the end of June and like some other house builders in the same position NEED to get rid of finished stock before this time.

I wouldn't discount this offer but I would not pay the asking price of their new build.

Just as an example we have been haggling with another big house builder with figures due end of June and have so far negotiated 17% off a new house to include carpets and turf. We will be pushing further. We are not doing a part ex though.
Another point to note is if you are doing part ex you need to be going up by 30% from the value of your current home so bear this in mind for mortgage purposes. You would be better reducing the price of your house, get a quick sale and really push Barratts down.

IMO even when their end of year passes you will still be able to get a good deal because NB are not selling at the moment.

Hope that helps.

Strapped

The "market value" they will assess will be the "priced to sell in 2 weeks" value. In the present climate, you can guess how low that will be. I agree with the above, better to sell yourself at a discounted price and approach Barratts with cash in hand.

Dunstan_2

Thank you everyone for your really helpful answers. I have really been held in check (thank goodness by the sounds of it). There seems to be quite a bit of negative publicity about the build-quality of these houses too, and I think that as we would prefer not to live in a new-build anyway, we will pass on their kind offer!!

Thanks everyone!

Trollfever

Have a look at the graph for their share price over the last year.


http://www.barratt-investor-relations.co.uk/ir/shareprice/graph.aspx?context=ir&path=irChart&service=getPriceVolumeChart&client=bdev&transform=priceVolumeChart&period=1Y

gemima

Blimey thats some drop!!

Jorgan_2

Regarding the quality of Barratts properties, I've had no problems with my current property. A number of people on the Westbury side of the estate have had nothing but problems. It really comes down to how good the site manager & the tradesman working on site are.

glen8

NO NO NO NO NO NO NO NO NO

We have just bought a new build on a Part-Ex

We got 10% MORE than TRUE market value for ours, 10% LESS for their house PLUS:-

Carpets, Tiled Flooring, Curtains, Blinds and Landscaped Garden