Although we keep hearing that not enough residential properties are being built, developers are struggling to sell the ones they have completed!
It’s becoming increasingly difficult to obtain a contractor mortgage and the problem will get worse when mortgage lending companies impose stricter lending criteria.
Most builders are now resorting to reducing house prices and offering incentives in a bid to attract buyers.
Brand new properties have high asking prices and some of the valuers, working on behalf of lenders, say they are not worth their price tag. The good news is that if you are able to buy, and feel like haggling, you should be able to snap up a bargain.
According to Smartnewhomes.com, the marketing website, 11 different types of incentive are now on offer. You could part-exchange your old home or get free fixtures, fittings or appliances in the new one. Taylor Wimpey, for example, is including a free plasma TV with every home purchased at its Academy Central development in east London. Some builders will offer financial help with the costs of moving or stamp duty.
Whilst buyers of new homes may be getting freebies, the downturn in the housing market has meant sellers of older homes are becoming more tight-fisted. Agas, light bulbs, door furniture and even turf disappear and some people have resorted to siphoning oil from the tank which can cause distress to people moving home during the cold wintry months.
Buyers of second-hand property may want to get their solicitor to draw up a list of things that will be left behind and then check it on completion day to make sure the seller has not stripped the house of fixtures and fittings that were included in the sale price.
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