Bidding on a new build! Shocking

herbalplants

https://www.boards.ie/discussion/comment/120860653#Comment_120860653

Very true. Same price.

https://www.boards.ie/discussion/comment/120860653#Comment_120860653

There can be it depends on the solicitor you use. There is generally less work required from the solicitor for a new builds vs 2nd hand properties. My solicitor charges slightly less but its not a huge saving.

Akarsh

Scwacrh,

okay i take your point and remove the 7 number house from my point.

But, you mean the other 3 houses which were constructed 7a, 7b, 6a; completely new are also old builds?

they also have bidding on it. I mentioned this above as well. I don’t understand the confusion?

Akarsh

Quote given on the same property. Only difference is new vs old.

herbalplants

https://www.boards.ie/discussion/comment/120869248#Comment_120869248

I think the answer is anything goes when we are talking about purchasing Property in Ireland. They can charge anything they like because they know they get the interested parties. I also agree there should be no bidding if it is a new build, no matter what excuses come up on this site that it was underpriced. Nothing is underpriced in Dublin.

astrofool

https://www.boards.ie/discussion/comment/120869248#Comment_120869248

The difference is the professional fees and stamp duty, as this is a second hand house, you may end up paying the second hand fees anyway. You're also free to negotiate the fees.

Stamp duty will be the legally applied amount and will depend on whether the buyer pays VAT on the second hand property (unlikely but I don't know if there was some rental then sell VAT deferral process that the government ran).

You seem to be arguing semantics, it is a second hand house and sold as such, all new builds could be sold by such a process if desired (they're not as the builder usually needs the guaranteed income to fund the build).

C3PO

I still don’t understand the argument that there should be no bidding on a new house? On what logic? Typically new houses have been sold at a set price because they are part of an estate of similar houses but there is no rule that states that it has to be that way!

Former Former Former

https://www.boards.ie/discussion/comment/120872090#Comment_120872090

Yeah exactly.

And usually a set price applies when there are dozens of units for sale. How would you even decide who gets the single new house at the set price?

The J Stands for Jay

https://www.boards.ie/discussion/comment/120872090#Comment_120872090

I've always wondered why new builds weren't sold like other houses. Always seemed strange that the builders would t try to maximise their income.

Dav010

https://www.boards.ie/discussion/comment/120873332#Comment_120873332

It’s usually because they are sold in phases where each phase finances the next. By placing a set price on the initial phase, and each phase thereafter, developers can quickly get money in, and gauge demand before setting price for next phase. If each unit was sold separately by bidding, it would take longer, involve more risk that disaffected higher bidders would pull out, if they saw similar houses selling for less than they bid, bidding would make selling off plan more difficult, and lastly, the market might set a lower price per unit with bids than the price the developer wants to sell them for. There are probably a lot more reasons to do with finance projections, conveyance and auctioneers fees etc that make bidding on each unit less attractive to the developer.