It can be lovely to own and live in a newly built house. Everything is brand spanking new, untouched by others. Sure there may be snaggings, but for once in your life you are actually living in a show home.
But are they good investments? So here at Quick Property Buyer, we thought we would write this article on buying homes from new.
1. Price Can Go Down Because Of The Premium Paid For New
Time and time again we see owners selling their homes which they bought from new for less than they originally paid. They start off putting their homes on the market at a price higher than they paid (properties have gone up right…) but over time they have to reduce and reduce the price until they are forced to accept an offer far less than they paid.
Such sellers will vociferously castigate the ineptitude of their estate agents as the process develops in these situations and end up quite bitter and twisted at the price they have been forced to accept. This may have been during a period of ownership when properties may have been rising.
Sure this is not a rule to live by, but we have seen it on many occasions.
2. Why Does This Happen?
What we have learnt is that buyers have to pay a premium for having everything new. But when they go to sell, this newness value has been lost. The property is now old and therefore the property is now compared by buyers against other possibly tired properties on the market.
To put an example to this, I once bought a house in central Brighton for £65,000 less than the seller had paid 6 years earlier. She was bitter. This was during a period where prices had gone up 20%. And this story was repeated for every house in the road.
3. What To Do If Struggling To Sell A Home You Bought From New
If you are struggling to sell a house you bought from new, you could consider using an auction house but there are no guarantees. You could also consider a quick property buying company who will pay cash for the property very quickly.
A benefit of selling property for cash is the likelihood of the deal not progressing to completion is far less. Also the deal can be closed far quicker than if the buyer needs to raise finance or sell their own property.
Our view would be to sell to a cash buyer on all occasions if you have the option. When selling property do not be guided by sentiment. The nice family may have tugged at your heartstrings but if they need to sell their home, they will not be your favourite buyer if the deals falls through.
If you have to take less from a cash buyer so be it. Sure if you are not in a rush or do not have an onward purchase, you can afford to be more choosey. But in most cases, it is far better to opt for option that is most likely to compete.
That is why Quick Property Buyer is always a good option.