Large New Build Developers
The big new build property developers are more likely to give us new build properties at a discount when they are approaching the end of their financial year. They need to increase revenue from sales for their city figures so look to secure a number of sales quickly. These properties are usually constructed ‘stock plots’ which are perceived to be tying up revenue, i.e properties that are completed but unsold. Developers also need to be discreet as they do not want those who have already bought on site finding out they are selling at significant discounts. This is why many of these deals do not make it to our website and if you are looking to buy from us emphasises the importance of ensuring your Broadgate property investment adviser knows what you are looking for. Occasionally it is requested that we don’t send out mail shots. We recently sold a new build property which an experienced investor bought to flip. They put it back on the market with the agent who had been marketing it for the developer at £250,000, the client bought it from us at £191,000. When they told the agent what they bought it for he nearly fell off his chair. He was most put out he wasn’t given the opportunity to market it at a lower price by the developer.
On some sites, the higher the price they manage to sell for, the bigger the discount they give. Why? Because developers often have a target figure for a phase of the development or a block of apartments. If they sell some for more than they budgeted, they can afford to sell others for less than they budgeted. When you’re building homes at such large volumes, selling properties faster at slightly less profit can ultimately be the most profitable option.
Could you find these new build deals yourself without paying us a finders fee? Possibly, yes but we do have advantages.
1. Many of our new build deals are done at director level, site offices do not have authority to offer the discounts we are given. On occasion developers will request that our clients do not inform site office about the prices they have been offered!
2. Many of our deals are done for multiple properties, if you are looking to buy one you may not achieve the same level of discount.
3. Many of our deals are done based on track record and deliverability. Their main concern at this time is not how much they sell to you for but whether you will complete on time. We have a strong track record of fast completions with the major house builders.