Pulling out of buying a new build!

siowenson

We are paying £780 p/m at the moment.

I think we are going to pull out of the new house and wait untill we sell our flat before looking for a house with a more modest price tag.

I just hope we dont have to pay extortionate fee's that might cripple us.

siowenson

Called our solicitor yesterday, he recommends that we get persimmon to put the house back on the market.
Although persimmon already have 3 identical houses up for sale our new house will be undercutting them by £3k so hopefully it should entice someone to buy it.

So now im hoping for one of two things:
1. The flat sells for a decent price and we tell persimmon to take the new house off the market so we can go through with the purchase.
2. persimmon sell the new house, we keep the flat up for sale and look into buying a house once we know how much the flat sells for and once the housing market calms down.

dopester

I bet you could have negotiated a better price on that Persimmon home.

Just the other day there was a tale of a developer (Barratts' other builder.. the one they market under a different posh name) discounting it £25,000 for a buyer when he agreed to buy, then when he told them he couldn't sell his own place and needed to drop his price... they contacted the regional manager who immediately matched his reduction by another £40,000.

Admittedly on a more expensive home but same principle.

Is this in the same development as your new build place in East Lothian?

a) £186,950

siowenson

Thats the same one m8.

I think i will try negotiating with them after my work today.
Who should i speak to? I dont suppose the sales rep can make a reduction on the price after its been sold?

siowenson

What sort of scope could i hope to have?

If they reduced the price by as much as £10k i would still have to front £17.3k for a 10pc deposit which is only £1k lower than what i need just now.
If i dont have a 10pc deposit for A&L(who i took out a portable morgage with) then i incurr a £2.5k fee.

Basically, If i sold my flat for £135k I would break even and have the deposit but anything less than that i would have to pay cash(or a loan?!). Ive had my flat up for sale at a reduced price of offers over £125k for 3 weeks now without any viewers and i only have 6wks left.

I think i will try negotiating with them after my work today.

Im now wondering if there is any point because the longer i leave telling them to re-market the house the less likely they will sell it before my moving in date.

dopester

siowenson wrote: »

What sort of scope could i hope to have?

I'm not sure but was recalling this forum post at hpc.

A couple I know are in the process of buying a new David Wilson home (5 bed, 3 story, on established development in Hull). The original advertised price was £375k.

With haggling and a few deals thrown in they got it down to around £320k and signed on the dotted line.

They had two houses to sell due to previous seperation. One sold immediately for asking price but the other has stuck around. They knocked £10k off (£160k) but still no interest.

Yesterday they get a call from the estate agent saying that nothing is moving and if they want to sell they should seriously reduce the asking price.

Off they went to David Wilson who said that they would approach the area manager to knock a further £40k off the price of the new house! Just like that!

So that brings the house originally advertised at £375k down to £280k!

If it gets approved they will knock £20k off the one they are selling (even though they think it is "worth" more!) and probably sell it straight away.

So the big home builders are obviously very worried about losing buyers and estate agents are trying to get sellers to come to terms with the new world we live in!

Si

The situation you have is slightly different as you've got those Scottish missives which I've just done some research about, and they might have you more by the balls with.

What are missives?

Missives is the term applied to the exchange of a series of letters between solicitors comprising a formal offer, qualified acceptance and other letters which are exchanged leading to a conclusion of a bargain, in other words the letters that go to make up the contract for sale. In Scotland the contract letters are normally signed by the Solicitors, not the purchaser and seller themselves.

Hope you can find some solution like that part-exchange. Anything but be left with your own property not selling despite reductions and being smacked with £50 a day penalty on the other.

siowenson

Ive reduced the price to £132k but i doubt it will have an effect on it not selling.
Even if it sold at that price i wouldnt be able to afford the 10pc deposit on the new house so things are looking bleak.

My solicitor will be getting in contact with persimmon today to ask them to remarket the house. Fingers crossed it sells before june 30th.

Matt_B_3

Hi Forum,

New recruit here looking for valuble advice.

I am currently in the process of buying a 'new build' property & am looking on anyones thoughts / experiences regarding negotiating. The current situation is as follows:

Asking price of new build property: £169,950

My current property as independently valued last week: £124,950

Developer's part exchange offer of against new build: £120,000 (+ the added bonus of no Estate Agents - possible saving of £2,0000)

Developer (Portford Homes) have also offered the incentive of floor coverings throughout, oven / hob, re-turf both front & rear gardens.

Should i be looking to negotiate even further & if so, what advice could anyone offer? (bearing in mind that my partner is worried that the developer may call our bluff). We have also put down £500 reserve fee at this early stage & would lose £250 of that if we were to back out, which will not break the bank!!

Any advice / experiences which may help would be welcomed.

Regards,

Matt B.