Buying a New Build?. Selling tricks to watch out for.

What with all the new houses being constructed around te UK at the moment, there is a rush of people wishing to own their first/bigger home.
The developers are quite a whiley bunch when it comes to 'sealing the deal' so will apply a few tricks to 'rush' a prospective buyer into making what will be the biggest purchase of their lives.

Some of the tricks are outlined below.

Trick 1 - The 'selling fast' trick

Ever wandered around a new development and noticed how many of the nearly/completed properties are already sold?. Well, one of the easiest ways to get someone to make their minds up is to initiate their 'panic buying' mode.

If they think they are about to miss out on a bargain because 'as you can see, the properties are selling fast and the next phase will be more expensive', the buyer will rush into the decision to purchase the property in order to not miss out on their new home.

In reallity, 50% of the properties initially marked as 'sold' are not in fact sold at all. So don't be surprised to find that when you finally moved in to find the property next door is no longer sold, but instead 'for sale'.

This trick is used to kick-start sales on new developments.

Trick 2 - Multi-developer sites

A large  number of developers operate under more than one name so don't be surprised to see exactley the same houses built across a major development with a small number being built by another developer.

This 'other' developer will usually be a subsiduary or sister company to the main developer. The houses will be identicle to the ones built by the main developer, but will be much lower in price.
This trick is to fool they buyer into believing that the higher-priced houses are a much better quality.

In reallity, once a set number of the lower pried houses are sold, the price difference is reversed so that the small development becomes higher-priced. Meanwhile, the houses on the main development see their prices cut by whatever the initial difference was in the first place.

Thus, those who purchased the cheaper houses are exstatice to see their houses increase in price, whilst those who purchased at a higher price may well find themselves in negative equaty.