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Original poster

Buying a new build ( or thinking about it)

26 replies

Claracracksthenut · 23/01/2019 19:45

We are considering buying a new build so need serious advice.

Firstly the part exchange option really appeals. What is the thinking of this? Good idea or bad? Current market is flat and we are unlikely to sell quickly.

Also it appears you have to exchange prior to the build is complete.
So funds that you require for the 10% exchange have to come from any savings as mortgage company wooden allow any funds prior to completion.
This is a very scary concept and feels very vulnerable?????

Any advice on how to get price down?
Any advice at all x

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Original poster
Claracracksthenut · 24/01/2019 16:11

Bumping up as I need advice and will get told off if I go and put on AIBU out of desperation.

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Mummytowooter · 24/01/2019 17:10

We did PX with Barratts. Very easy. Deposit came from the px value of our old property. We exchanged on the Thursday and completed the Friday. All the money moved at the same time on the Friday with us not having to find anything extra. Hope that helps

Stringofpearls · 24/01/2019 17:15

Agree with PP we also did part exchange and got more for the flat we were in than it was currently valued at and than they were able to sell it for too! They might negotiate a bit on price but you could also ask for things like carpet/flooring or upgraded kitchen bits to be thrown in. We love our new build, especially in winter when it's so easy to keep it cosy.

Original poster
Claracracksthenut · 24/01/2019 18:42

We are a bit stressed about the 10% differential we have to find prior to completion. Roughly £20000 ? Our money is tied up in current house and we did some work prior to planning to sale to get it ready. Apparently normal but is there a way to get this money without a loan from the sale?

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Yumyumbananas · 24/01/2019 23:36

We bought a new build and didn’t pay any deposit as it was all coming from the sale of our previous home. We exchanged on this basis months and months before completion. No issues. Solicitor dealt with it all.

Lumene · 24/01/2019 23:43

We did part exchange. Glad we did as the build was delayed for 6 months and at least we had somewhere guaranteed to live. Really pleased with the new place, been a few years now.

Original poster
Claracracksthenut · 25/01/2019 07:44

Thank you all. So none of you had to find extra money up front?
Well fingers crossed they drop the He price in line with other houses and we can get moving. The plot we want is higher price of identical house they have done a special drop on and the show room lady said it would be dropped soon also???? We will see

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MuddyWellyNelly · 25/01/2019 08:48

What is the 10% exchange? Is it a deposit? The price differential between your current property and the new one? A fee? It doesn't sound standard but it might be ok depending on what the contract says. You need to talk to your solicitor before you sign.

Random18 · 25/01/2019 20:34

We did a PX 13 years or so ago and it worked for us. We probably got less than we could have for house on open market but we were happy and also I don’t think we would have sold quickly.
If I can remember rightly we only paid a smallish deposit. Nowhere near 10% - maybe even just the reservation fee - it was a while ago so my memory is hazy.

goodolddaze · 25/01/2019 20:36

We love our new build. Absolutely love it.

MovingThisYearDefinitely · 25/01/2019 21:46

We're buying a new build. Put a reservation fee down in August & complete next Friday. Can't wait. Grin Our deposit came from our previous sale, which we completed on 2 months ago. We have been in short term let since then & our stuff in storage. Have a word with the developer & see what is possible for you. You will probably find only certain plots are available as part exchange. Usually the least desirable ones & they're unlikely to offer further incentives. The benefits of buying a new build, in my opinion, outweigh any hassles of the long drawn out process & potentially going into temporary accommodation.

Original poster
Claracracksthenut · 26/01/2019 06:24

Part exchange seems to be all plots. As long as you are up grading by at least 30%. The one we really want is out of budget and they are not dropping price enough for us.. so currently re thinking. Anyone know what the market is really like at the moment? Can we sit it out or do we just re pick?

They say “ exchange within 21 days where a further 10% of the differential (between sale and purchase will be required” . Spoken to a property lewyer and apparently quite normal in new builds.

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Random18 · 26/01/2019 08:53

How much out of range is it? I would be tempted to say walk away if you can’t get what you want.
My only other thoughts are that new builds are very expensive. You are paying a premium for new. We lost money on our new build when we sold as we bought pre financial crash. (Had enough money to seal it up)
And with Brexit if we get no Deal prices will crash.
It’s a tough one though.
When is their Financial year end. Some of the best deals can be when they are getting close to that.

Original poster
Claracracksthenut · 26/01/2019 09:49

Its around 60000 out of budget. We are looking top of range the next one down is probably do able. It’s all the big ones left but no idea if we stand a chance with the dream house. I don’t know when financial year ends I don’t know If they will budge house prices could go either way in reality. I am not good at negotiating also.

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Random18 · 26/01/2019 10:59

It’s so hard. But fon’t Be afraid to play hard ball (she’s says but is rubbish at it herself!!)

Today is the last Sunday in the month so the agent may have sales targets to reach if you say went today.
£60k is probably too much out of budget to be able to get.
If you can’t get money off, see what extra they would be prepared to offer - would they pay stamp duty, legal fees etc etc.
And as for losing money on our house - it’s all relative - we bought our next home cheaper than we would have a few years earlier - as long as you have enough of a cushion to prevent negative equity.

Original poster
Claracracksthenut · 26/01/2019 11:20

We are going after lunch to look at the next house down. It's not a show house but at least we get to see inside and size etc.
Any advice on how to play this? We obviously need to get as much in as possible with any deal as this is a massive purchase for us.

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MiniCooperLover · 26/01/2019 14:14

Ask if there are any discounts available. We didn't and paid £40K more than our next door neighbour who was clearly more savvy than us. Don't believe their first answer.

Villanellesproudmum · 26/01/2019 14:25

I part exchange for a new build in the last crash, couldn’t sell and needed to move, I less than a week after my neighbours and paid £10k less with lots of battering and they also added turf and house alarm etc, worth really haggling. I would have really struggled to sell my old house. Is the amount to high for a bridging loan?

Villanellesproudmum · 26/01/2019 14:25

I didn’t batter them I promise Grin

Sunshinegirl82 · 26/01/2019 15:13

Could you use Help to Buy to bridge the gap? Obviously look into it all so you understand the pros and cons.

You can't part exchange with help to buy though so you'd need to sell your property first.

Original poster
Claracracksthenut · 26/01/2019 16:36

We can’t do px as our hours is more than the 30% difference to the one we viewed today, we could for the more expensive one but we can’t really afford that. 😭 So we are going to have to put ours on the market and slog it out.
I’m really upset as so wanted a new house and I just know DH will now find a way to get another horrid old do upper. I just can’t do that again.
Been in tears all afternoon.

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Sunshinegirl82 · 26/01/2019 16:59

If you can't px anyway then does help to buy get you there?

Original poster
Claracracksthenut · 26/01/2019 17:09

Sorry I meant less than 30% difference. They want you to be upgrading by over 30% of value of new house and ours is worth too much.
We can’t use help to buy as the houses we are looking at are over 600000. We live in an expensive area.
1st world issues!

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Original poster
Claracracksthenut · 26/01/2019 17:12

DH doing serious maths and muttering about over priced houses with plastic windows.
House will be going on market ASAP .
Do they sometimes cover stamp duty btw?

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Sunshinegirl82 · 26/01/2019 17:18

Oh, that's annoying!

We bought a new build and really depends on how well they're selling and how much they need the sale. We got them to pay stamp duty, contribute to legal fees and drop the price slightly (not by loads but a bit).

I'd get an offer on your house and then put forward an offer, worst they can say is no.

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