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New build: price negotiable?

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Comments

  • #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: 32,285 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    The issue is that a lot of prospective buyers are having their mortgage approvals withdrawn.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, Registered Users 2 Posts: 1,215 ✭✭✭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    The issue is that a lot of prospective buyers are having their mortgage approvals withdrawn.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: 32,285 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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