Developer reservation and part ex.
Discussion
Does anybody know appromiately how reservations and develop part ex works?
I saw a house today which is part of a barn conversion development. The plot I am intersted in has been 'reserved', I assume wih a deposit of some sort, but the developer also offers part ex if the price differntial is large enough. Five questions:
1. I am assuming reservations have a time limit after which they may lose their reservation fee or get it back and the property would then be back on the market?
2. Is it true that sometimes developers will leave a property as 'reserved' even if any time limits have already passed, if they have no other offers on the table and the purchaser has their place on the market?
3. What % would normally be seen as a good differential for a developer to take part ex?
4. How do they establish the value of the part ex?
5. If I contact the developer with a large differential and the cash to make up the gap with a 28 day completion, is that likely to bump the person who has reserved it off the list if they have exceeded or are nearing their reservation time limit?
I am kicking myself, really hard, for having missed this one as I saw it months ago but ignored it as too small based simply on the number of bedrooms, when in fact it had scope for an extra bedroom. Muppet.
I saw a house today which is part of a barn conversion development. The plot I am intersted in has been 'reserved', I assume wih a deposit of some sort, but the developer also offers part ex if the price differntial is large enough. Five questions:
1. I am assuming reservations have a time limit after which they may lose their reservation fee or get it back and the property would then be back on the market?
2. Is it true that sometimes developers will leave a property as 'reserved' even if any time limits have already passed, if they have no other offers on the table and the purchaser has their place on the market?
3. What % would normally be seen as a good differential for a developer to take part ex?
4. How do they establish the value of the part ex?
5. If I contact the developer with a large differential and the cash to make up the gap with a 28 day completion, is that likely to bump the person who has reserved it off the list if they have exceeded or are nearing their reservation time limit?
I am kicking myself, really hard, for having missed this one as I saw it months ago but ignored it as too small based simply on the number of bedrooms, when in fact it had scope for an extra bedroom. Muppet.
davidjpowell said:
It all varies depending on what they can get away with.
One (big name) developer at height of recession went around sticking 'reserved' signs up to make it look like the development was selling. We knew the sales girl, and knew differently.
The sales manager was there today when I was having my discussions with the temporary sales woman and said nothing. Their head office web site says they are all reserved except for one plot although I notice that asking prices have been cut by about 15% from their launch in March 2011 so it can only be 3 months or so since it was reserved.One (big name) developer at height of recession went around sticking 'reserved' signs up to make it look like the development was selling. We knew the sales girl, and knew differently.
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