Impact of planned development project on asking price

[solario]

We're FTB, looking at our first house tomorrow. It's very near where we live now, in an area we'd like to stay in, though it's a pricey part of town.
The current asking price is our maximum budget at the moment.

EA said there's been an offer slightly below the asking price but the property only just came on and the seller is still thinking it over.

It's a close-knit community, and I think our being local might be an advantage and attractive to the seller. (Maybe? Thought obvs not an advantage that would save us in a bidding war, which we will not be able to enter into anyway.)

From the listing, it looks like a new kitchen might be needed and some other minor work, but overall, appears in good condition.

We're also aware of a development project that's likely to go forward right across the street, which many ppl in the area are protesting as they feel it will change the character of the area. (Putting in about a dozen new semi-detached houses that will sell for £1.5-2m each.)

Could we use the development project as a justifiable reason to offer lower than asking? And if so, how much would you knock off?

To compare, there are a couple of other properties also for sale in the area, all slightly higher priced but they haven't moved in a couple of months, which makes me think they're overpriced. One has been reduced too (but is still out of our price range).

That should be: Impact of planned development project on OFFER price

I suspect they are moving because of the potential development project and have factored that in to the price.

You've said there is an offer on the property already, hopefully they are waiting for your viewing before making a decision on it otherwise it could be off the market before you even get to view, unfortunately. Try and view it with an open mind, not going round it looking for ways to knock down the price because that can come across to vendors and they may not take you seriously. Good luck with the viewing, OP.

how do you think the project adversely affects the price apart from building work, which is temporary

Yes. It is blighted. And there will be no extra infrastructure for the houses so check drainage.

This is a really subjective question so quite hard to put a figure on. You'll have to think about what it would be worth to you if those houses were there - do they block views etc. If it's only 12 then hopefully won't have a massive impact on traffic etc. Equally, having an "exclusive" development of expensive houses (assuming this is expensive for your area!!) might mean some people think other houses are also worth more.

You might find that they will hold out for someone who doesn't know the area to make an offer. They'll find out during searches, but by that time a lot of people are relatively committed to buying anyway.

If there is already a near asking offer on a property that’s been on the market 10 minutes you’ll struggle to get huge chunks off because you’re local and don’t like the kitchen. If it’s has solid interest (and the market round here is to go by) it will likely go over

If they were building something that would be a detriment to the area such as an incinerator or an abattoir then I would imagine they might expect to be flexible on price, building 12 houses at £1.5 -2m not so much, unless of course they would be spoiling a glorious view but even then it would probably be already reflected in the asking price.

At the end of the day you can offer what you like but they might not accept it. The fact they have an offer under asking and haven’t accepted suggests they’re not desperate. There are worse developments than a few high end houses,

Sorry to say I can't imagine the seller giving preference to local, it's MONEY that gets preference!!

Blimey - what area is building semis for nearly £2m!!

As you are ftb you might be better buyers! Put in the same offer. See what happens. Less seems not very sensible to me. Any semi costing £2m is hardly going to bring prices crashing is it? This sounds very expensive to me so I assume you have a lot to spend too. Can your money buy something without a building site opposite?

Often planning will be granted for infill. Why would new spoil the area? Most areas other than conservation areas regenerate.

If there's already an offer slightly below the asking price it doesn't give you much room to manouvere

If the new builds are going to be worth more than your property they're likely to increase the value of your house rather than devalue it.