Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

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1997

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Just wondered if anyone had any advice as to a query I have.

We put a deposit on a new house in a small development a couple of months back, didn"t sign contracts yet and now we just found out that the price of the remaining houses have dropped by 13 thousand.

Just wondered what our situation is on this as we haven"t signed for the house yet, could we be in aposition to renegotiate do you think?

Look forward to your advice and comments, thanks!
 
Re: New House price dropped!

If you just have a booking deposit down and haven't even signed initial contracts then I'd imagine that you can negotiate to buy it at the cheaper price. You'd be mad not to try in that scenario.
If you've signed anything that contracts you to buy at the higher price then you'll probably be stuck. But it might still be worth trying to negotiate. The builder will most likely want to hold on to you at this stage.
Be careful that the builder doesn't try to tell you that the spec is better in your house or the floor area is slightly different than this new phase which is cheaper, as I have heard of some builders doing that.
 
Re: New House price dropped!

you could say to the builder that the bank will only give you a mortgage at the lower value. the builder will want to hang on to any buyer they can get so don't budge from the lower price.
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

Hi, thanks for the quick replys, its not a new phase being built, they are just the remaining few left of the original phase, and no we put a deposit down 2 months ago but as we were waiting for our house to own home to be signed for we never signed contracts for the new house yet, the prices were lowered literally last few days so hopefully we can negotiate a deal as the 13 grand will go a long way to furnishing the new house. Hope its not a bad thing they"ve reduced the asking price by so much?
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

It probably just indicates that they were overpriced to begin with.
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

We were in a similar situation. We had put down a refundable deposit on a small development of houses (11 in total). We were dragging our feet in signing the contracts as we saw an older house that we were interested in, but the bidding was taking forever on it. In the end, we got the older property and told the agents for the new houses that we were no longer interested. They immediatly dropped the price from 317 to 300. I am sure we could have got them down even more with further haggling. We simply didn't want the new build in the end. What scares me, is that we were very close to signing contracts and paying the 317, essentially losing 17 grand in the process.

You have to realise, this is now a buyers market and the builders are getting scared. If they know you are sincere they will give you the house at the lower price. Just say you have seen something else and are considering pulling out.
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

just wondering if the op had bought in a rising market wheather they'd be offering the builder more money than they had agreed upon?
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

seantheman said:
just wondering if the op had bought in a rising market wheather they'd be offering the builder more money than they had agreed upon?
Click to expand...

Tis no different from when the builders put ten or fifteen grand on to the price of a house over the space of a weekend ,for no other reason that they could get it !.

What goes around , comes around.
 
Get some friend to enquire about the property at the new reduced price, and get them to ask if the (new price) is negociable downwards. Then you will get an idea first what the real bottom line is. Dont assume its just the new lower price, it may be even lower!
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

Just to update, just had a call from the Estate Agent selling the propertie urging me to have my solicitor to contact the developers as the builder is anxious to for us to sign contracts! I asked her why all of a sudden the phone call and she just said its a follow up for their records! She never mentioned the price drop and when I asked her was there many left she said 7, which means they havent sold any since around July when we first viewed them! Bit coincidental I thought, maybe they"r afraid I"ll hear off the price drop and look for the lower price? Actually thought she was ringing to inform me of the new development, how naive!
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

I definitely think I should wait before signing, there are a couple of new developments in the area too, similar prices but with more spec and allowances, I suspect thats why hes dropped prices as he has some competion and theres plans for another development down the road too. I personally don"t appreciate being made a fool off which to be honest is how I feel now. If we had signed its a different story but all we"ve done is put a refundable deposit down so far. It"s the agent ringing out of the blue all of a sudden leaves a bad taste in my mouth, and after all 13 grand to us and most people is a major difference!
 
would totally agree with you 1997 you are in strong position by the looks of things. Play hardball and as you say maybe you might buy elsewhere and get more for your few bob. :)
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

Maybe I'm not very smart.

You have a refundable deposit down on a property in a development in which houses are readily available at a lower price.

Get your deposit back.

If you want to, recommence negotiations with the lower price as the starting point.
 
There doesn't seem to be any issue here regarding contracts, so why have you still not taken back your deposit? It seems obvious that the thing to do is start from scratch when there are 7 houses plus yours left to choose from. The only thing is they might not want to do business with you if you are showing no signs of selling your own house.

It"s the agent ringing out of the blue all of a sudden leaves a bad taste in my mouth, and after all 13 grand to us and most people is a major difference!
Click to expand...

Imagine that ringing out of the blue a full 2 months after you have paid your deposit to enquire whether you would like to sign contracts. I can't believe they have let you sit on a deposit for 2 months without ringing you every week asking you to sign.
 
Re: Deposit on new house; since then prices have dropped -€13k: can we renegotiate?

I"d imagine they let us sit on the deposit for fear of scaring us off or wanting to appear desperate, why else would they? We have sold our house or at least contracts signed and deposit paid so we are in a position to sign right away! I will be ringing the agent by the end of the week to discuss the price drop but not until I check out the new estate and see what they are offering first, all seems a bit fishy to me now. Camry I have a sneaking suspicion you might be right in that they want us signed sealed and delivered before reducing prices again, will keep you postedn thanks again!:)
 
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