Buying a new build

SarahPL

Hi all,

I am in the process of buying a new build. We signed a sales agreement a few months ago and paid a refundable booking deposit. We are meeting our solicitor next week to sign contracts.

I have been checking the property website for the last few months to check how much properties in the neighbourhood are selling for.

I just saw today that a house a few doors up from the one I am buying, which according to the plans is the exact same house with the same specs, sold less then one month ago for 30K less than mine, another one with a significantly bigger garden sold for 10K less.

Do you think at this stage there is anything we can do, seeing as we did sign a sales agreement deposit? Is it too late go negotiate? It's so frustrating!

Thanks
Sarah

Gumbo

SarahPL wrote: »

Hi all,

I am in the process of buying a new build. We signed a sales agreement a few months ago and paid a refundable booking deposit. We are meeting our solicitor next week to sign contracts.

I have been checking the property website for the last few months to check how much properties in the neighbourhood are selling for.

I just saw today that a house a few doors up from the one I am buying, which according to the plans is the exact same house with the same specs, sold less then one month ago for 30K less than mine, another one with a significantly bigger garden sold for 10K less.

Do you think at this stage there is anything we can do, seeing as we did sign a sales agreement deposit? Is it too late go negotiate? It's so frustrating!

Thanks
Sarah

Possible sales to friends / family?
VAT is typically excluded from new build data but then so it should be excluded on yours also.

Deffo no harm asking before signing.

SarahPL

kceire wrote: »

Possible sales to friends / family?
VAT is typically excluded from new build data but then so it should be excluded on yours also.

Deffo no harm asking before signing.

Thanks for the reply. It's definitely calculated to include VAT, it shows the price both before and after VAT. Thanks again

Graham

Also keep in mind that the prices you're seeing may be the prices that were agreed way before you signed your agreement.

If the houses you're looking at were bought off plan, it's quite possible you're seeing sales prices from 2016.

AM258

SarahPL wrote: »

Thanks for the reply. It's definitely calculated to include VAT, it shows the price both before and after VAT. Thanks again

If you’re looking at the property price register, the prices for new builds are shown ex vat which is charged at 13.5% on new builds, this is why you will see odd numbers e.g. new build purchase price of €400k will show on the property price register as approx €352,422.

Also as suggested by one of the other posters, if they are on the PPR, they have already closed which means they may have been from a previous release or agreed a price some time before you. Prices are rising by the week, I have seen prices for the same house go up by about €45k since January this year in one development i was interested in. And that’s just between phase 2 and phase 4, they’ve gone up €60k since phase 1. Still seeing houses closing from phase 2 and appearing on the PPR recently.

SarahPL

Graham wrote: »

Also keep in mind that the prices you're seeing may be the prices that were agreed way before you signed your agreement.

If the houses you're looking at were bought off plan, it's quite possible you're seeing sales prices from 2016.

Hi Graham,

Absolutely, I think that's a definite possibility. I still think a 30k increase seems excessive considering we will both be moving into our new homes at approximately the same time.

We are first time buyers and so eligible to get the help to buy scheme. I feel that the builder is using this as a way to increase his prices rather than to help first time buyers get on the property ladder. Which is unfortunate.

Thanks for your reply
Sarah

SarahPL

AM258 wrote: »

If you’re looking at the property price register, the prices for new builds are shown ex vat which is charged at 13.5% on new builds, this is why you will see odd numbers e.g. new build purchase price of €400k will show on the property price register as approx €352,422.

Also as suggested by one of the other posters, if they are on the PPR, they have already closed which means they may have been from a previous release or agreed a price some time before you. Prices are rising by the week, I have seen prices for the same house go up by about €45k since January this year in one development i was interested in. And that’s just between phase 2 and phase 4, they’ve gone up €60k since phase 1. Still seeing houses closing from phase 2 and appearing on the PPR recently.

Hi ya I agree, prices are rising at a crazy rate. I think it's worth questioning with the builder before signing contracts though.

I think on PPR they give both the VAT exclusive and VAT inclusive prices. For in example, in the picture I attached VAT exclusive was €246k and inclusive was €279k

Graham

SarahPL wrote: »

HI still think a 30k increase seems excessive considering we will both be moving into our new homes at approximately the same time.

If you are thinking of going back to the developer to renegotiate, keep in mind prices may have gone up further since you went sale agreed. That's potentially going to weaken (or obliterate) your negotiating position.

myshirt

Graham wrote: »

If you are thinking of going back to the developer to renegotiate, keep in mind prices may have gone up further since you went sale agreed. That's potentially going to weaken (or obliterate) your negotiating position.

Agreed. If you don't want the house there is likely a log cancellation list of people waiting to step in and buy at an even higher price.