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Negotiate price on new build

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Comments

  • hearts
    hearts Posts: 1,191 Forumite
    lypsey wrote: »
    Personally , I would advise renting for 12 months and buy your new house 20% less.

    Put your equity in the highest paying bank account you can find

    The market will be 50% lower in 5 years time , why pay 200k at the TOP of the market???

    Do you honestly believe this tripe ;-)

    If prices are even 1 % cheaper in 5 years than they are now, come back and I'll send you a big cheque ;-)
  • Rover
    Rover Posts: 323 Forumite
    I am undecided on how much prices will fall or correct. I am however damn sure it'll be of a double digit magnitude. Time scale will be years.
    It wouldn't be worth the effort in trying educate you of my reasoning or of the over-whelming fundamental causes.

    Can I just ask you, if the IMF and Alan Greenspan have predicted 40% falls and as recently as last week, before a parliamentary committee, Merv King said, expect falls in both commercial and residential prices in 2008. Why are you so confident, or should that be, blinkered?
    anger, denial, acceptance ;)
  • Yes, we are looking for a house/ home to live in for the next 20 years or so and can comfortably afford the mortgage, it is not anywhere near the amount we can afford to borrow, but that doesn't mean I shouldn't try to get a discount, should it?
  • Yes, we are looking for a house/ home to live in for the next 20 years or so and can comfortably afford the mortgage, it is not anywhere near the amount we can afford to borrow, but that doesn't mean I shouldn't try to get a discount, should it?

    No it doesn't, of course you should try.

    Ignore both ends of the 'market will crash' and 'market won't crash' arguments and just stick with the facts.

    Builders of new homes are struggling. Share prices have dropped markedly and demand is weaker at the moment. Buyers in a position to proceed are like gold dust at present.

    Regardless of what the market may or may not do in the future, currently houses are not selling as well as they were and you are in a great position. Personally I would go in with a low offer, somewhere around 15-20% less and work from there. You will probably not get that much off, but stick to your guns and do the best that you can. Give the impression that you will walk away and buy elsewhere unless they agree to your price. Don't be afraid to walk away and let them sweat - we have been offered some significant discounts lately after letting the sellers dwell on things for a week or so.

    Like some other posters have advised I wouldn't be interested in 'extras' - it's money off that you want.

    I would expect to be able to negotiate at least 10% off with a new build in the current climate and you might do better than that.
  • Can you do this...

    We have sold our house to a first time buyer, they have had survey done and are looking to complete before March.

    On Saturday we looked at a new build on the market for £199950, what would be the best form of attack to get this price down and get 'extras' added into the price?

    Not having done this before would like some advice from all the kind folks on here.

    Thanks in advance

    Ignore the hpi lunatics, i have just bought a house so take my impartial advice. Offer £163772. See what happens, good luck, you can always up your offer but wait a couple of weeks before doing this, it's not as though it's the last house on the plot, good luck with whatever happens
  • lypsey
    lypsey Posts: 201 Forumite
    Hearts , yes I do believe it and I have sold my house and banked the money

    If shes spending 200k and she saves herself just 10% , I would say a saving of 20k is worthwhile , don't forget 20k over the life of a 25 year mortgage costs you 40k

    What if she saves 30% over 3 years , 60k and then over 25 years costs 120k.
    Answer me honestly DO YOU think it is worth it???

    If a house can rise 300% over a decade , please please explain why it can't crash 40%
  • hearts
    hearts Posts: 1,191 Forumite
    Rover wrote: »
    I am undecided on how much prices will fall or correct. I am however damn sure it'll be of a double digit magnitude. Time scale will be years.
    It wouldn't be worth the effort in trying educate you of my reasoning or of the over-whelming fundamental causes.

    Can I just ask you, if the IMF and Alan Greenspan have predicted 40% falls and as recently as last week, before a parliamentary committee, Merv King said, expect falls in both commercial and residential prices in 2008. Why are you so confident, or should that be, blinkered?

    Can you supply a link to the 40% quote you give please. As for falls they may or may not happen but they will certainly not happen to the degree you so freely "predict".
    I am not in any way blinkered. If I thought what you say was likely I would say so. I don't, so I say that.
    My reasoning I suspect is based on far better financial reasoning than yours. Unless there is a war, plague, or other great disaster in the near future which cannot be accounted for then what you hope for won't happen. ;-)
  • Rover
    Rover Posts: 323 Forumite
    I did not predict 40% falls, the IMF and Greenspan said UK housing is 40% over-valued.
    I will dig out the links if I have time later.
    King was on TV last week wrt the other aspect.
    MY prediction was of 10%+ and quickly. The 'disaster' has already happened, sentiment has turned, fundamentals don't add up. Relevant share prices have halved, I could go on but you are still in denial.

    I did not mention crash, I said correction and it will go on for years. Leaving the great British public paying interest on a depreciating assets whilst the orchestrators move on to the next bubble.
    anger, denial, acceptance ;)
  • dolce_vita
    dolce_vita Posts: 1,031 Forumite
    hearts wrote: »
    Can you supply a link to the 40% quote you give please. As for falls they may or may not happen but they will certainly not happen to the degree you so freely "predict".
    I am not in any way blinkered. If I thought what you say was likely I would say so. I don't, so I say that.
    My reasoning I suspect is based on far better financial reasoning than yours. Unless there is a war, plague, or other great disaster in the near future which cannot be accounted for then what you hope for won't happen. ;-)


    Like banks refusing to lend money for over-priced properties, for example?



    OP - you should not be paying more than 70% of the valuation on a new build.
    dolce vita's stock reply templates

    #1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided

    #2. This time next year house prices in general will be lower than they are now

    #3. Cheap houses are a good thing not a bad thing
  • lypsey
    lypsey Posts: 201 Forumite
    Hearts

    http://news.bbc.co.uk/1/hi/business/7149406.stm

    It says "The percentage of landlords selling their properties is at a three-year high, according to a surveyors' group. "

    What do you think will happen when the BTL people exit the market , they make 11% of the market , with no 1st time buyers , its not rocket science
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