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Stevewho

New Homes- How To Know If They Are Priced Accuratly

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Hello,

I'm new to this site so forgive me if this has already been covered!

I'm currently looking at new build properties. Trouble is, how can I tell if they are realistically priced? I can't really compare them to other houses nearby as because they're new they are totally different really.

Any ideas guys? Also, do you think new build flats are likely to fall further than others?

Thanks, Steve

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Hello,

I'm new to this site so forgive me if this has already been covered!

I'm currently looking at new build properties. Trouble is, how can I tell if they are realistically priced? I can't really compare them to other houses nearby as because they're new they are totally different really.

Any ideas guys? Also, do you think new build flats are likely to fall further than others?

Thanks, Steve

1. ask them how many square metres (or feet). Then work out the price per sq m. Now compare that to nearby older build. BTW if you do ask a site agent how many sqm there are in a new house, they'll look at you all confused and then scurry away to find out.

I don't understand why. Every other country states prices and sqm and we do for commercial. Why don't we get that info when we are buying or renting? The two times I've bought a house it took a lot of time with a calculator working out the floor area of comparable houses.

2. Alternatively, wait until they come up for resale, then see what they have made on nethouseprices or similar. The problem is that the first sale value is bound to be a complete fiction surrounded by cash backs, gifted deposits and other back-handers of a dubious nature. But the first REsale will tell you much more what they are worth.

3. "because they're new they are totally different really". Houses are houses are houses. New ones aren't any different. They still comprise rooms, access, outside space, running expenses and location. That's what you're paying for. Why can't you compare? If a developer has really found a radical way of selling accommodation, I'd like to know what it is. Come on! Spill the beans!

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Any ideas guys? Also, do you think new build flats are likely to fall further than others?

Thanks, Steve

New build flats will be the biggest hit in the crash. Lots of them about, most are no more than boxes and thousands have been bought by BTL people who will be wanting to sell them. Plus when the crash gets going people will miss out this step and go straight to a small house.

Depending on the builder I reckon you could get 40% off a new build. The big builders are desperate for turnover.

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3. "because they're new they are totally different really". Houses are houses are houses. New ones aren't any different. They still comprise rooms, access, outside space, running expenses and location. That's what you're paying for.

Spot on there, Redwing. The difference between a three bed semi built in the mid-80s and three bed semi that's just been constructed is, erm, well, it depends on which one you like more really. Same with all of them really. A brand new two-bed Luxury Executive Appartment might be worth more or less than a two-bed flat, depending on which is, erm, better.

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1. ask them how many square metres (or feet). Then work out the price per sq m. Now compare that to nearby older build. BTW if you do ask a site agent how many sqm there are in a new house, they'll look at you all confused and then scurry away to find out.

I don't understand why. Every other country states prices and sqm and we do for commercial. Why don't we get that info when we are buying or renting? The two times I've bought a house it took a lot of time with a calculator working out the floor area of comparable houses.

2. Alternatively, wait until they come up for resale, then see what they have made on nethouseprices or similar. The problem is that the first sale value is bound to be a complete fiction surrounded by cash backs, gifted deposits and other back-handers of a dubious nature. But the first REsale will tell you much more what they are worth.

3. "because they're new they are totally different really". Houses are houses are houses. New ones aren't any different. They still comprise rooms, access, outside space, running expenses and location. That's what you're paying for. Why can't you compare? If a developer has really found a radical way of selling accommodation, I'd like to know what it is. Come on! Spill the beans!

New houses tend to depreciate a bit as many of the people who buy a new house don't won't to buy a 'second hand' house

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Guest happy?
Hello,

I'm new to this site so forgive me if this has already been covered!

I'm currently looking at new build properties. Trouble is, how can I tell if they are realistically priced? I can't really compare them to other houses nearby as because they're new they are totally different really.

Any ideas guys? Also, do you think new build flats are likely to fall further than others?

Thanks, Steve

Take the developer's advertised price and multiply by 50% - this should give you a fair and accurate valuation.

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New houses tend to depreciate a bit as many of the people who buy a new house don't won't to buy a 'second hand' house

Er.. That's partly why I suggested waiting until they come up for resale. Of course, they're not new by then. But at least you can save making a really big mistake.

If you really are so absolutely obsessive compulsive that you will never ever sit on a toilet seat that someone else has sat on then..... buy a new build.

Or buy a new toilet seat.

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New houses lose thousands as soon as you drive them off the forecourt.

Ha, beat me to it. i was gonna suggest calling the AA for an expert opinion and check over before purchase :lol:

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Hello,

I'm new to this site so forgive me if this has already been covered!

I'm currently looking at new build properties. Trouble is, how can I tell if they are realistically priced? I can't really compare them to other houses nearby as because they're new they are totally different really.

Any ideas guys? Also, do you think new build flats are likely to fall further than others?

Thanks, Steve

Hi Steve

Its not just the property, it's the area, alot of new builds are in really dangerous areas, with a total dependance on use of a car to shop or whatever.

I think a new build sold early last year for say 299k will probably be worth 100k next year, at best. Some of the new build quality really is frowned upon.

After next year they will drop like mad by 90% plus IMO....largely because of a lot of BTL investors pulling the plug on their portfolios and going bankrupt (like some banks have lost huge profits this year (Alliance +Leicester over 99% loss), largely consisting of new builds to rent out. Crime in these estates will soar due to empty/damaged properties.

But hey, there's always a good side.... :rolleyes:

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Don't buy a new house.

Unless it is at auction.

Wait a little while, they will be soon.

Buying a new house at the moment will mean only one thing. You are being screwed.

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Hello,

I'm new to this site so forgive me if this has already been covered!

I'm currently looking at new build properties. Trouble is, how can I tell if they are realistically priced? I can't really compare them to other houses nearby as because they're new they are totally different really.

Any ideas guys? Also, do you think new build flats are likely to fall further than others?

Thanks, Steve

They aren't priced accuratley/accordingly end of story!

Be cheeky and offer them 50% under asking until eventually you get one if indeed you want one.

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Blimey. Lots of doom and gloom! But its probably realistic doom and gloom!

Actually, I think its worth distinguishing between a complete new build (ie a new development) and an old building that's been beautifully renovated. I assume an old building that's been renovated will likely fall less.

Some really interesting posts though- there is a glut of new builds especially around the Docklands in London, which is where I live now.

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Just take a big pot of tippex into the marketing suite with you and tippex out the 0 on the end of the price of them all. That should do it.

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Just take a big pot of tippex into the marketing suite with you and tippex out the 0 on the end of the price of them all. That should do it.

Seriously? You think they'll fall that much? Does anyone know stats about what happened in the early 90s with new builds?

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Blimey. Lots of doom and gloom! But its probably realistic doom and gloom!

What "doom and gloom"?

For the people on this site, falling house prices aren't "doom and gloom", they're "woo, party!, break out the champers, prices are finally returning to sensible levels and young working couples will be able to raise a family again".

Things are looking up. :)

In fact, it's good news for everyone unless you bought at the peak, own more than 1 house, or became a BTL landlord for capital gain instead of yield.

So, almost everyone in the country, really. :)

Edited by DementedTuna

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What "doom and gloom"?

For the people on this site, falling houses prices aren't "doom and gloom", they're "woo, party!, break out the champers, prices are finally returning to sensible levels and young working couples will be able to raise a family again".

Things are looking up. :)

Well yes. But it means you have to wait a while to get the benefit of that. I don't want to buy my first home now and then find the price has dropped 30-50% in a few years (that's the bad bit)

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Guest Shedfish

i don't know of a single property in the UK that's realistically priced, if that's what you mean... and i've been observing houses for a while now.

seriously, unless you have either; forced circumstances, or a big stack of cash you can afford to lose or need to park, you would need to be be fairly stupid to buy a house in the UK at this time (IMHO)

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Well yes. But it means you have to wait a while to get the benefit of that. I don't want to buy my first home now and then find the price has dropped 30-50% in a few years (that's the bad bit)

If you buy now, you will find that.

Go rent for a bit.

Put "offers" in on the rent as well. If they don't take it, walk away.

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i don't know of a single property in the UK that's realistically priced, if that's what you mean... and i've been observing houses for a while now.

seriously, unless you have either; forced circumstances, or a big stack of cash you can afford to lose or need to park, you would need to be be fairly stupid to buy a house in the UK at this time (IMHO)

You're probably right. So when's the market gonna reach its bottom, that's what I wanna know. Ah, that's another thread- off I go and take a look at that!

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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