Are new builds overpriced???

[kappadelta]

Part exchanged in December 2012 as we couldn't sell our old house - there was a shooting at a neighbouring property!! We were glad to get away but our new house isn't our 'forever' home. We put it on the market in June and changed agents in January. Last week we reduced the price but in all this time have had 1 viewing and 1 no show. Any advice would be great

Yep, people get caught up the new and shininess, but ultimately a new build will only ever be the newest estate for so long, probably less than two years.

So what kind of percent would I have to reduce by to get some interest? Once the market picks up we won't be able to afford our dream home

Have you looked to see what the sold prices are for comparable houses in your area in the past 3/6 months? How old is the house/long have you been there? Are there any newer estates in the area?

I think the smaller ones lose their value a lot quicker. There are a lot of new builds near us which are very small. I think once the shiny newness wears off people are less likely to overcome practicalities, and older but larger properties can often be found for a similar price

Right so I've had a look round. All the builders are wrapping up now. There was a similar property to mine sold for 7k less back end of last year. There are about 5 properties on the market at the moment similar to mine with only 1 cheaper but that doesn't have a garage and is a townhouse rather than a semi like ours.

The builders have just finished on your estate? How long have you been in for? That would cause alarm bells for me, someone who wanted to sell up in such a short time, it would make me wonder if it was really unpleasant to live there.

We moved in December 2012 and it was a means to an end. Not unpleasant just not where we want to be in the grand scheme of things.

Go by the sold prices not the asking prices.

Are houses like cars where you knock 10% off the price by just moving in?

I think you tend to pay a bit of a premium for a brand new house, but not for a second hand new build

Looking at sold prices if I knocked 10% off which I can't afford I would have my hand ripped off!!

I have heard that new builds attract a premium
Better to buy a new build if you plan on staying for at least 5 years

Yes, they are overpriced, but only if that is what the market will bear. The reason new builds tend to be a bit more expensive, when new, is that the builder is factoring in their profit. No profit, no more new houses. They also know people like a house where nothing needs doing. Presumably you live in an area where house prices are flat so you may need to price attractively to sell. As you have probably spent next to nothing maintaining the house and have not had to replace anything, the house has cost you less in this respect. If you really want to sell, reduce the price a bit because it appears nothing is selling at the prices you are all asking.

Depends on location and development.

Desirable locations always win. Huge developments of 3,000 houses are difficult. And once the developers have left, are there management companies that keep the estate in tip-top condition?

Gloss fades inside the house once normal life kicks in, and the landscape architect is no longer anywhere in sight to keep the common areas look nice.

The developments that win in the end, are beautifully designed, and often have management companies looking after the common areas, etc.