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New build: price negotiable?

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Comments

  • #32
    smurfette2212
    Registered Users Posts: 180 ✭✭smurfette2212


    Apologies if this is a daft question, or has been asked before (I can’t find it if so!) but when buying a new build, or looking to buy, from an estate agent rather than the developer, is putting in an offer below the asking price foolish? If there are only a few of the houses left, should you just offer what they ask?


  • #33
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    How long have the few houses been on the market?


  • #34
    Creamy Goodness
    Registered Users Posts: 26,556 ✭✭✭✭Creamy Goodness


    This was asked a couple of days back, thread below a wealth of info

    https://touch.boards.ie/thread/2057944840/1/#post109130873


  • #35
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note

    Threads merged


  • #36
    smurfette2212
    Registered Users Posts: 180 ✭✭smurfette2212


    Creamy Goodness wrote: »
    This was asked a couple of days back, thread below a wealth of info

    https://touch.boards.ie/thread/2057944840/1/#post109130873


    I knew that would happen - I always fear starting a post that already exists. Thanks for pointing me in the right direction!


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  • #37
    smurfette2212
    Registered Users Posts: 180 ✭✭smurfette2212


    the_syco wrote: »
    How long have the few houses been on the market?

    I think 2-3 months. 3 have sold, 2 are left. There are other properties in the development but with a different estate agent, I believe.


  • #38
    enricoh
    Registered Users Posts: 4,805 ✭✭✭enricoh


    smurfette2212 wrote: »
    I think 2-3 months. 3 have sold, 2 are left. There are other properties in the development but with a different estate agent, I believe.

    No harm trying. Depends on how stuck the builder is to pay off the crowd financing it.
    This brexit lark will surely affect sales, apparently the interest on builders loans is very high. builders might be a lot more willing to negotiate n take a small hit.
    Especially if theres a few developments in the area on the go.


  • #39
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,278 Mod ✭✭✭✭The_Conductor


    enricoh wrote: »
    No harm trying. Depends on how stuck the builder is to pay off the crowd financing it.
    This brexit lark will surely affect sales, apparently the interest on builders loans is very high. builders might be a lot more willing to negotiate n take a small hit.
    Especially if theres a few developments in the area on the go.

    It depends on the developer- but any developer who wants to maintain a private business is looking at interest rates of 12-14% from Irish lenders (even now). Aka- you or I can walk into a bank and secure an overdraft- on better terms than many builders. I've been careful with my choice of wording here- those developers who have alternate financing models and/or business structures (including but not limited to LA or NAMA financing to finish other developments- which themselves are dwindling in number)- can access far better terms.

    In short- nothing ventured, nothing gained. One thing I'd suggest though- is look to see whether a developer has had to diversify and shift their sales to alternate venues- is a single main estate agent handling sales- or have multiple agents been appointed- and a chunk of sales moved online. The more people they are trying to involve in the sales- equals the more difficulty they are having in shifting the units- and commensurately, the more likely they are to entertain alternate arrangements with prospective buyers.

    Times are changing-its not carnage out there by any means- but the days of queuing to buy something, anything, in the arse-end of nowhere, just to get something- are over...........


  • #40
    happyfriday74
    Registered Users Posts: 194 ✭✭happyfriday74


    They will take them at asking at first at the point the buyers at queuing up outside. By all means you can try haggle but they will likely just pass you over for another buyer who is willing to put a booking deposit at asking.

    What COULD happen is months down the line when the time comes to sign contracts and pay the non refundable contract deposit one of the buyer at asking may pull out at that point( found another house, change of circumstances etc) and they may go back to you if they are in a hurry to sell out the phase.

    No guarantees though and I really wouldn't bet on it as they will be calling all the people who were offering full asking who missed the chance to place a booking deposit before they call you.

    If they do they will expect you to be ready to go and complete asap.

    Best of luck!


  • #41
    Edgware
    Registered Users Posts: 5,875 ✭✭✭Edgware


    There can be a bit of flexibility in buying new builds depending on demand for the property. If not on price it could be a higher grade of kitchen/bathroom etc.
    However where people are lining up with deposits you wont get too much


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  • #42
    happyfriday74
    Registered Users Posts: 194 ✭✭happyfriday74


    I nearly got a new build cheaper than asking. House was lets say €15 but was sold at €17 as they added a small extension.

    I was bidding on another house and the seller took it off the market.

    In the meantime a friend who bought in a new estate we liked told me he heard one of the nearby houses was having issues closing due to a purchaser playing games returning a contract. The other party has 3 months late returning the contract and he said the builder was going to pull the sale and wanted the house sold before xmas and likely to take a small discount if we could complete quickly.

    We put in an offer of 15 which was less than what it was agreed for but said we would be able to complete within a few weeks and no messing. Builder said fair enough and he would talk his partner.

    Builder came back and said that he told the other party they were walking and going with an underbidder(i.e us).

    I got a call a few days later and apparently the original buyer suddenly came to the builder and assured them they would complete the purchaser and we were told there would be no deal.

    By chance the sellers of the original house we wanted had a change of heart, reapproached us and decided to sell to us after all. We promptly exchanged contracts.

    A week before closing the original house, the builder of the second house called me up and loe and behold his original purchaser was playing games again and said our original deal was back on the table. I told him at this stage I was committed to the other house and wasn't able to follow up.

    As you can see, there a lot of ifs and buts and luck is going to be the only factor.


  • #43
    Dearg81
    Registered Users Posts: 3,159 ✭✭✭Dearg81


    My next door neighbour got their new build 4 bed house for less than the asking price while I had to queue for my 3 bed. This was a couple of years ago and it was on the market for around 1 year but it shows that it can be done.


  • #44
    Sunrise_Sunset
    Registered Users Posts: 1,211 ✭✭✭Sunrise_Sunset


    There is another new development we are interested. A small development of 8 houses. Listed at 400k. 2 are unsold. Do you think an offer for less could be made on these?


  • #45
    happyfriday74
    Registered Users Posts: 194 ✭✭happyfriday74


    lililanny wrote: »
    There is another new development we are interested. A small development of 8 houses. Listed at 400k. 2 are unsold. Do you think an offer for less could be made on these?

    By all means try but selling season is coming up soon in spring.Reckon they will push the houses hard then to try get asking or above.

    Also if they are only sale agreed and haven't had contracts signed on the 6 others they might be worried about the other buyers getting wind of them giving you a discount and try price chip themselves.


  • #46
    lfen
    Registered Users Posts: 196 ✭✭lfen


    Hi, wondering if anyone went ahead and offered less than asking and could share how they got on? New development with about 10 houses left, which have been on sale now 5 months. Work on another phase due to start in the next couple of months.


  • #47
    duffman13
    Registered Users Posts: 8,945 ✭✭✭duffman13


    I made an offer about 3 months back on a small development which was overpriced in my opinion. The developers agent laughed, houses were listed at 485k and I offered 445k. Granted it's a considerable money difference but I'm not a first time buyer and it felt overpriced to me so I just walked away. Got a phone call Friday, 5 of the 8 units still available and asking price is 465 but if I'm in a position to move quickly there could be wiggle room.

    So I'm sure there is a possibility however it really depends on the development and the interest in it. Offer What you would be willing to pay to live there for the next 30 or 40 years. I wasn't interested in the price drop as it still wasn't where I wanted to go pricewise so I left it there.


  • #48
    paddy1892
    Registered Users Posts: 2 ✭paddy1892


    Interested in the last house in a development, it's the show-house. Think it was put on the market the back end of 2019. The actual development was originally released in 2018.

    Reckon I bid the asking price or go slightly lower? Just wary in case another person came in with the asking price whilst they considered ours...


  • #49
    lfen
    Registered Users Posts: 196 ✭✭lfen


    paddy1892 wrote: »
    Interested in the last house in a development, it's the show-house. Think it was put on the market the back end of 2019. The actual development was originally released in 2018.

    Reckon I bid the asking price or go slightly lower? Just wary in case another person came in with the asking price whilst they considered ours...

    The show house is generally more expensive than the other houses. We were told to add €35k in the estate we are looking to buy in.

    No real harm going in lower though. I’m sure the EA would let you know if someone came in with a higher bid to give you the opportunity to go higher.


  • #50
    paddy1892
    Registered Users Posts: 2 ✭paddy1892


    lfen wrote: »
    The show house is generally more expensive than the other houses. We were told to add €35k in the estate we are looking to buy in.

    No real harm going in lower though. I’m sure the EA would let you know if someone came in with a higher bid to give you the opportunity to go higher.

    Thanks, yeah it's a good bit higher. Around €45k. It's well kitted out though.


  • #51
    PukkaStukka
    Registered Users Posts: 2,154 ✭✭✭PukkaStukka


    paddy1892 wrote: »
    Interested in the last house in a development, it's the show-house. Think it was put on the market the back end of 2019. The actual development was originally released in 2018.

    Reckon I bid the asking price or go slightly lower? Just wary in case another person came in with the asking price whilst they considered ours...

    The fact that it's the last house and hasn't sold by now speaks for itself. There's either no demand or its overpriced


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  • #52
    Wellboy36
    Registered Users Posts: 5 ✭Wellboy36


    Does anyone think the Covid situation will give scope to negotiate the price in a new development?

    I've reserved a house in a new development (paid booking deposit but haven't signed contract, etc) which was one of 8 released back in February. 6 of the 8 were reserved at the time but only 4 appear to be reserved now so they seem to be having trouble finding buyers.

    Would it be worth trying to renegotiate now or is it even possible to do so?


  • #53
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,278 Mod ✭✭✭✭The_Conductor


    Wellboy36 wrote: »
    6 of the 8 were reserved at the time but only 4 appear to be reserved now so they seem to be having trouble finding buyers.

    The issue is that a lot of prospective buyers are having their mortgage approvals withdrawn. Anyone claiming the Covid payment- is automatically excluded and getting yanked. Its been highlighted as an issue in the media several times in the last 10 days- with all of the pillar banks guilty of yanking approvals-in-principal and some lenders ringing up borrowers to check to see if contracts have been signed (and in some cases, even when contracts have been signed, still yanking mortgage approvals if they haven't been drawn down).

    A Covid payment in the house = automatic exclusion from the mortgage approval process- regardless of what stage your mortgage approval is at (up to draw down obviously).


  • #54
    Sunrise_Sunset
    Registered Users Posts: 1,211 ✭✭✭Sunrise_Sunset


    The_Conductor wrote: »
    The issue is that a lot of prospective buyers are having their mortgage approvals withdrawn. Anyone claiming the Covid payment- is automatically excluded and getting yanked. Its been highlighted as an issue in the media several times in the last 10 days- with all of the pillar banks guilty of yanking approvals-in-principal and some lenders ringing up borrowers to check to see if contracts have been signed (and in some cases, even when contracts have been signed, still yanking mortgage approvals if they haven't been drawn down).

    A Covid payment in the house = automatic exclusion from the mortgage approval process- regardless of what stage your mortgage approval is at (up to draw down obviously).

    I also think that some buyers are willingly pulling out of sales. I know of a couple who put a booking deposit on a new house, they are both teachers with safe incomes, and they are thinking of pulling out because they feel that house prices will drop and in a few months time they could get more bang for their buck. But will the banks be lending in a few months time?! Probably not.


  • #55
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,278 Mod ✭✭✭✭The_Conductor


    Sunrise_Sunset wrote: »
    But will the banks be lending in a few months time?! Probably not.

    Its highly likely that the main lenders will be forced to severely curtail lending in the short to medium term- and may very well introduce onerous criteria on prospective borrowers, which make it difficult for all but the very safest of borrowers, and even then, they could very well cut lending multiples and/or do away with exemptions.

    We are in unprecedented times.


  • #56
    justme112
    Registered Users Posts: 31 ✭justme112


    Sunrise_Sunset wrote: »
    I also think that some buyers are willingly pulling out of sales. I know of a couple who put a booking deposit on a new house, they are both teachers with safe incomes, and they are thinking of pulling out because they feel that house prices will drop and in a few months time they could get more bang for their buck. But will the banks be lending in a few months time?! Probably not.
    Going through the same thought process now however we've signed contracts. House build has not begun and we're beginning to query what options we have. Expecting to see some of the previously reserved houses become available again. All speculation of course but our concern is prices will drop and we end up paying above new asking.


  • #57
    Wellboy36
    Registered Users Posts: 5 ✭Wellboy36


    The_Conductor wrote: »
    Its highly likely that the main lenders will be forced to severely curtail lending in the short to medium term- and may very well introduce onerous criteria on prospective borrowers, which make it difficult for all but the very safest of borrowers, and even then, they could very well cut lending multiples and/or do away with exemptions.

    We are in unprecedented times.

    Unprecedented times indeed and there seems to be an inevitability of how much house prices which fall by as opposed to if they'll fall.

    And when this happens, will developers start dropping prices when they can't sell properties already advertised when the banks tighten up and credit is less readily available.


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