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Bidding on new builds

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  • 03-07-2020 12:30pm
    #1
    bbehan202
    Closed Accounts Posts: 66 ✭✭


    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


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    #2
    Dav010
    Registered Users Posts: 14,084 ✭✭✭✭Dav010


    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?


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    #3
    bbehan202
    Closed Accounts Posts: 66 ✭✭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


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    #4
    SmokyMo
    Registered Users Posts: 311 ✭✭SmokyMo


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


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    #5
    dubrov
    Registered Users Posts: 3,556 ✭✭✭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


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    #6
    Cash_Q
    Registered Users Posts: 1,920 ✭✭✭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.


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    #7
    werenotthere
    Registered Users Posts: 33 ✭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


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    #8
    guyfawkes5
    Registered Users Posts: 291 ✭✭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.


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    #9
    cruizer101
    Registered Users Posts: 3,205 ✭✭✭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.


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    #10
    Gumbo
    Moderators, Society & Culture Moderators Posts: 38,530 Mod ✭✭✭✭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?


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    #11
    bbehan202
    Closed Accounts Posts: 66 ✭✭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.


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    #12
    bbehan202
    Closed Accounts Posts: 66 ✭✭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!


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    #13
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,850 Mod ✭✭✭✭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.


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    #14
    bbehan202
    Closed Accounts Posts: 66 ✭✭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


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    #15
    Senature
    Registered Users Posts: 340 ✭✭Senature


    Isn't VAT 13.5% on new build houses?


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    #16
    un5byh7sqpd2x0
    Closed Accounts Posts: 1,862 ✭✭✭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.


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    #17
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,850 Mod ✭✭✭✭L1011


    Senature wrote: »
    Isn't VAT 13.5% on new build houses?

    Yes. Oops.


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    #18
    bbehan202
    Closed Accounts Posts: 66 ✭✭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


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