Buying off plan - Discount or Premium
Discussion
We've found a house on a new development, which we really like the look of. Well, the plot looks good anyway as it's not yet built.
Does this add a premium to the price or can I use this as a negotiating tool for a discount? it's up for £220,000 but I'd ideally like to pay more like £200,000.
Does this add a premium to the price or can I use this as a negotiating tool for a discount? it's up for £220,000 but I'd ideally like to pay more like £200,000.
Engineer1 said:
It can be both, you can potentially get better fixtures and fittings at the same price, it depends on how well they are selling and if you are buying in the first wave of construction as cars outside houses and lights on make the place look more appealing to other potential buyers
It'll be built in the 2nd of 3 phases - The first phase has almost finished, nearly 2 years after they started, so I'm guessing that they are not selling too well. Theres only 50 houses on the development.Fixtures and fittings is a good call, but for me, a discount on the price is worth more than an upgraded kitchen etc.
if they are coming close to finish of their first phase, then I suspect that the best deals will be focused on seeing closure their.
Don't believe anything they tell you. A major house builder were going round one estate sticking random reserved stickers up to make it look like the houses were selling...
I queried one of their Directors about this as the house we were interested was suddenly not available, and on speaking to the sales girl she seemed unusually flexible about the availability of a reserved house, and on opening the file in front of me it had no reservation form. Hmm I though I smell a rat. Apparently this is quite acceptable, and is in no way meant to give a false impression to potential purchasers.....
Don't believe anything they tell you. A major house builder were going round one estate sticking random reserved stickers up to make it look like the houses were selling...
I queried one of their Directors about this as the house we were interested was suddenly not available, and on speaking to the sales girl she seemed unusually flexible about the availability of a reserved house, and on opening the file in front of me it had no reservation form. Hmm I though I smell a rat. Apparently this is quite acceptable, and is in no way meant to give a false impression to potential purchasers.....
- edited as I accidently named and shamed. oops.
Edited by davidjpowell on Tuesday 23 February 11:32
davidjpowell said:
if they are coming close to finish of their first phase, then I suspect that the best deals will be focused on seeing closure their.
Don't believe anything they tell you. A major house builder were going round one estate sticking random reserved stickers up to make it look like the houses were selling...
I queried one of their Directors about this as the house we were interested was suddenly not available, and on speaking to the sales girl she seemed unusually flexible about the availability of a reserved house, and on opening the file in front of me it had no reservation form. Hmm I though I smell a rat. Apparently this is quite acceptable, and is in no way meant to give a false impression to potential purchasers.....
Umm, this does happen. When you buy new they expect you to exchange in 6 weeks, if you don't then funnily enough they will remarket the property, also, if the sales person knows your position(any decent one will!) then of course they will listen to someone in a strong position who is interested in a "sold" plot. Howver that doesn't explain the lack of sales form in your case!!) OP, if your position is strong(ie, you can move in when they are completed & you can exchange contracts within 4-6 weeks) then trust me massive discounts can be had Don't believe anything they tell you. A major house builder were going round one estate sticking random reserved stickers up to make it look like the houses were selling...
I queried one of their Directors about this as the house we were interested was suddenly not available, and on speaking to the sales girl she seemed unusually flexible about the availability of a reserved house, and on opening the file in front of me it had no reservation form. Hmm I though I smell a rat. Apparently this is quite acceptable, and is in no way meant to give a false impression to potential purchasers.....
- edited as I accidently named and shamed. oops.
Edited by davidjpowell on Tuesday 23 February 11:32
Dave_ST220 said:
Umm, this does happen. When you buy new they expect you to exchange in 6 weeks, if you don't then funnily enough they will remarket the property, also, if the sales person knows your position(any decent one will!) then of course they will listen to someone in a strong position who is interested in a "sold" plot. Howver that doesn't explain the lack of sales form in your case!!) OP, if your position is strong(ie, you can move in when they are completed & you can exchange contracts within 4-6 weeks) then trust me massive discounts can be had
If I can exchange within 6 weeks, how does this work with mortgage though? Would I be paying a mortgage on an unbuilt property as well as rent until I can move in? Can I cheekily ask the builders to pay my rent? Jock Strap said:
Dave_ST220 said:
Umm, this does happen. When you buy new they expect you to exchange in 6 weeks, if you don't then funnily enough they will remarket the property, also, if the sales person knows your position(any decent one will!) then of course they will listen to someone in a strong position who is interested in a "sold" plot. Howver that doesn't explain the lack of sales form in your case!!) OP, if your position is strong(ie, you can move in when they are completed & you can exchange contracts within 4-6 weeks) then trust me massive discounts can be had
If I can exchange within 6 weeks, how does this work with mortgage though? Would I be paying a mortgage on an unbuilt property as well as rent until I can move in? Can I cheekily ask the builders to pay my rent? You will be entering into a legal contract, however, to complete on the transaction when the property becomes available. It is a growing problem at the moment that due to tightening of lending restrictions and reduced availability of mortgages that purchasers are failing to complete orders placed many months ago when finance was easier and cheaper. You are liable for losses to the developer if they cannot find a replacement buyer at the price you had agreed to pay. And, of course you will lodge a deposit at exchange, anyway. There are other threads running about this problem and of course other websites are available...
FOR GOD'S SAKE TAKE LEGAL ADVICE, preferrably truly independent advice.
I've never heard of a developer offering to pay your rent while awaiting the construction of your property (in the way in which you describe) so good luck with that!
Lol, wil they pay your rent?! Will they f
k!! As above you do not start paying the mortgage until the place is complete & you are in. IIRC a mortage offer is valid for 3 months (as is their valuation) so timing is the key. You know your position & likelyhood of getting the finance, without wishing to sound like a big head my man at the bank said if we can't lend to you then we can't lend to anyone! That still wasn't enough to stop my solicitor saying how dangerous it all was(when exchanged you are legally committed to buy, if the mortgage company say they won't lend then tuff st-the builder wants their ££!!), i just sat back, when the builder gave me a firm date(& they were willing to pay for another valuation should that date have slipped)i applied for the mortgage, got the valuation & away we went. There were a fair few people after the plot i wanted but none could exchange & proceed at the builders say so hence the accepatnce of my offer(that & the fact that things were looking pretty dire when my offer was accepted).
k!! As above you do not start paying the mortgage until the place is complete & you are in. IIRC a mortage offer is valid for 3 months (as is their valuation) so timing is the key. You know your position & likelyhood of getting the finance, without wishing to sound like a big head my man at the bank said if we can't lend to you then we can't lend to anyone! That still wasn't enough to stop my solicitor saying how dangerous it all was(when exchanged you are legally committed to buy, if the mortgage company say they won't lend then tuff st-the builder wants their ££!!), i just sat back, when the builder gave me a firm date(& they were willing to pay for another valuation should that date have slipped)i applied for the mortgage, got the valuation & away we went. There were a fair few people after the plot i wanted but none could exchange & proceed at the builders say so hence the accepatnce of my offer(that & the fact that things were looking pretty dire when my offer was accepted).scenario8 said:
I think it might - Thanks 
anonymous said:
[redacted]
Good advice, i got EVERY option sorted before sending an offer, it pissed them off as i knew they wanted to sell the shell then ass rape me on all the options i knew i would want. Get the spec sorted THEN offer, they make stloads on options & this will be taken into consideration with your offer. If they won't play ball tell them you are only interested in the place if you know how much it will be to spec it up like the show home Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff