Price Reduction Guarantees!

shenanigans1982

Are they the latest gimmick from developers as they continue to refuse to drop their prices?

Just noticed that in an estate in Carlow that I pass by every morning the developers are offering the guarantee that if the price is cut within the next two years they will refund the buyer the difference.

Considering that this development has fallen 65,000 (265,000 - 199,950) in less than two years since it went on the market do the developer know something we don't and feel that it has reached bottom?.....or are these claims just easy for them to make and then squirm out of when it comes time to pay up?

BTW I am not stupid enough to sign up for one of these but get the feeling a lot of people will be if they become the norm around the country.

Duckjob

First thoughts would be that (at the moment anyway) there's a fair discrepency between asking prices and selling prices, so you don't really know what the value of a property is unless you sell it yourself.

The value could also be based on what other properties in the same dev sold for, but since you're probably relying on the developer to give you that info, I'm thinking he can just pull figures out of his ass to suit himself.

Senna

Or if its the developer giving the guarantee and not a bank (Ulster Bank have started this) then he just has to get all his houses sold within 2 years and then liquidate the company.

Westwood

the builder is hoping for 200k, give him 260 now and he'll pay back the bank what he owes and be on the next flight to south africa