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Buying from new, negotiating with PX ?
Monkeybutt
Posts: 41 Forumite
Hi Everyone,
I have found a house I would like to buy that would involve PX'ing my property. The house is a new property and is the last available one on the development. Will PX'ing my existing property leave me in less of a position to negotiate on other things on the house, discounts / carpets / stamp etc.
Does anybody have a rough estimate of what kind of percentage is used by builders when calculating PX values, are we likely to get 75% or 95% of the true value.
Finally is there a figure I should look at achieving for discounts, ie total discount of 5% from house price.
Many thanks in advance for any replies
I have found a house I would like to buy that would involve PX'ing my property. The house is a new property and is the last available one on the development. Will PX'ing my existing property leave me in less of a position to negotiate on other things on the house, discounts / carpets / stamp etc.
Does anybody have a rough estimate of what kind of percentage is used by builders when calculating PX values, are we likely to get 75% or 95% of the true value.
Finally is there a figure I should look at achieving for discounts, ie total discount of 5% from house price.
Many thanks in advance for any replies
0
Comments
-
Hi Monkeybutt.
Where do I start???
Forget negotiations until you have an offer from the builder for your current property. Try https://www.ourproperty.co.uk to see what other houses in your area have sold for so you can make an informed decision.
From the builder's point of view, we need to buy in PX properties as cheaply as possible in the hope we might make a small profit on re-sale. This rarely happens, although its an acceptable scenario because PX helps us move the plots on site.
Percentage wise, we use a "quick sale" valuation for the reason above. The worst thing that can happen to us is, we buy in a property and have it on the books after legal completion on the plot. Cash tied up etc etc.
Now for the good news! It's the last plot on the development, I personally would be prepared to put an attractive deal together for you but remember the pro's of PX before you get too greedy!
No EA fees
Cash buyer
Easily agreed move in date and if the builder doesn't sell your house before the move in date, it's not your problem, it's theirs!
let us know how the valuation comes back. Good luck0 -
Hi distilled,
many thanks for your swift reply, I haven't even mentioned discounts yet but the saleswoman was keen to point out that carpets / turf / fittings etc were all negotiable so I figure they may be willing to deal.
I have checked on ourproperty and there was an equally specced house sold for 215k, in addition our property has a 6 month old (!) conservatory and is a corner plot. Our target figure is 205k on the part ex and anything else we can get will be a bonus, I'm hoping that this is reasonably achievable, purchase price of new property is £370k.
2 valuers ( tame estate agents
) are coming round this weekend so things should start moving beginning of next week.
Cheers0 -
And by the way, all you PX peeps, We don't pay stamp duty on properties bought in so there's another bargaining tool!0
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