Bidding on new builds

bbehan202

Hello,

1. I viewed a new build home in a "dodgy" area. In fairness the house is lovely - the area is not.
2. Estate agent is emailing me chasing me up so you know something is up. I have a feeling she can't sell them as fast as she wants given current climate and doesn't have many potential buyers/viewings.

Question: Is it normal to bid lower on a new build i.e. under asking price? Is that a thing people do?

Thanks,

K

bbehan202

bbehan202 wrote: »

Hello,

1. I viewed a new build home in a "dodgy" area. In fairness the house is lovely - the area is not.
2. Estate agent is emailing me chasing me up so you know something is up. I have a feeling she can't sell them as fast as she wants given current climate and doesn't have many potential buyers/viewings.

Question: Is it normal to bid lower on a new build i.e. under asking price? Is that a thing people do?

Thanks,

K

No matter how much the house costs, if you consider the area dodgy, shouldn’t you move on?

bbehan202

Dav010 wrote: »

No matter how much the house costs, if you consider the area dodgy, shouldn’t you move on?

Yeah but weighing up my options in terms of investment etc.

Anyone know the answer to my question?

Thanks,

K

SmokyMo

Who cares what people do. Its your money so you have to decide the value.

dubrov

Normally there is a set price that the builder sets. However, if they aren't selling, they will likely be nervous and definitely consider lower offers

Cash_Q

bbehan202 wrote:

Question: Is it normal to bid lower on a new build i.e. under asking price? Is that a thing people do?

What have you got to lose by just making an offer? See what happens. You'll either be ignored, told it's being considered, or told that they're not accepting offers under the asking price. Offer what you think it's worth going by the fact you consider it a dodgy area.

werenotthere

Definitely put a low bid in, no obligation to buy and estate agent has to keep you updated of any other offers, keeps you in the loop

guyfawkes5

To directly answer your question - it's not normal, but it has happened and is definitely more common now in the current market.

I'd just keep in mind that developers generally are more likely to wait it out then maybe a motivated second hand seller who just wants rid of a ex-rental property or inheritance.

cruizer101

SmokyMo wrote: »

Who cares what people do. Its your money so you have to decide the value.

Its a forum, people ask questions, that how it works.

OP personally I'd be inclined to avoid a dodgy area, you can improve house but not neighbours.
You mention investment, is this to live in or rent.

Regarding dropping the prices it can happen if they are struggling to sell but I think is rare and might be a bit of a warning sign.
I did overhear once a conversation where developer was dropping price of last two houses in a phase in order to get them sold, and I think ti was something to do with them getting more money released from bank to build next phase.

Gumbo

Normally you don’t bid on new builds. The price is the price.
But, if they really are not selling then there’s no harm at all.

What’s the worse they can say?

bbehan202

cruizer101 wrote: »

Its a forum, people ask questions, that how it works.

OP personally I'd be inclined to avoid a dodgy area, you can improve house but not neighbours.
You mention investment, is this to live in or rent.

Regarding dropping the prices it can happen if they are struggling to sell but I think is rare and might be a bit of a warning sign.
I did overhear once a conversation where developer was dropping price of last two houses in a phase in order to get them sold, and I think ti was something to do with them getting more money released from bank to build next phase.

Interesting you say that. I literally just viewed another new build in a different area and the estate agent told me that! It's the last one going in the block so she said the asking was X but I didn't need to put in that. The deal has fallen through a few times and they are eager to close.

bbehan202

.. and I checked the propertypriceregister and they have gone for 17% less than asking price for that block. Price went way down during COVID for the block.

So to answer my question the answer is yes!

L1011

bbehan202 wrote: »

.. and I checked the propertypriceregister and they have gone for 17% less than asking price for that block. Price went way down during COVID for the block.

So to answer my question the answer is yes!

PPR price is pre-VAT for new houses. And while VAT is 23% its not a case of deducting 23% to get the pre-VAT price.

bbehan202

L1011 wrote: »

PPR price is pre-VAT for new houses. And while VAT is 23% its not a case of deducting 23% to get the pre-VAT price.

****e. Thanks - I knew it was too good to be true.

K

Senature

Isn't VAT 13.5% on new build houses?

un5byh7sqpd2x0

L1011 wrote: »

PPR price is pre-VAT for new houses. And while VAT is 23% its not a case of deducting 23% to get the pre-VAT price.

13.5% horse.

L1011

Senature wrote: »

Isn't VAT 13.5% on new build houses?

Yes. Oops.

bbehan202

Perfect.

So price on PPR = 200,000e
Price it actually sold for = 227,000e

This is new for me but if you click through on any of the properties it does say VAT exclusive - https://imgur.com/a/E08O2pn .

Any thing else I need to know about new builds?

K