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Negotiate price on new build

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Comments

  • Rover
    Rover Posts: 323 Forumite
    Anger, denial.................................................acceptance.
    anger, denial, acceptance ;)
  • bandraoi
    bandraoi Posts: 1,261 Forumite
    A house that is 40% overvalued, does not mean that the true price is a 40% fall.

    A house that is valued at £140,000 that is 40% over valued has a true value of £100,000.

    A 40% fall on a house that valued at £140,000, is a fall of £56,000, ie the final value of the house would be £84,000.
  • The.Real.Me
    The.Real.Me Posts: 39 Forumite
    dolce_vita wrote: »
    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.

    So you are saying I should be able to negotiate to buy my (asking price) 200k house for 140k, I don't think I could be that cheeky, wouldn't they just laugh me out of the office?

    Thanks again everyone
  • Rover
    Rover Posts: 323 Forumite
    Nope. I'm saying you be able to negotiate a substantial discount on their asking price.
    The rest is probably more pertinent to the future, ie years down the line.

    If you are, to all intents and purposes, a first time buyer with cash in hand. You are a dream buyer to a builder. Atleast 5% would be a given, 10%+ if you chance your hand and they are desperate. And they probably are.

    I have dealt with a large builder, as a 'cash buyer' in 2000 and I got 10%. I had to wait for them to finish the build, etc - nontheless it was a 'real' discount. Not a free alarm worth £750 (~ £150 in materials).
    anger, denial, acceptance ;)
  • dolce_vita
    dolce_vita Posts: 1,031 Forumite
    The.Real.Me wrote: »
    So you are saying I should be able to negotiate to buy my (asking price) 200k house for 140k, I don't think I could be that cheeky, wouldn't they just laugh me out of the office?

    Thanks again everyone

    Yes I am saying exactly that.

    Builders are as indebted and in as desparate a situation as millions of individuals. Eventually (say within 6 months) they will be biting your hand off for 140k.
    And at that point you offer 130k.

    The house probably owes them 100k all in and they will want to get their money back asap.

    It's just a matter of waiting.

    In the meantime keep making "silly offers" and don't be pressurised or embarrassed.

    You don't need to explain your reasons or anything, just make the offer and then wait for the answer.

    good luck
    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
  • The.Real.Me
    The.Real.Me Posts: 39 Forumite
    Thanks once again, I will give it a real go on Saturday, I have nothing to lose (only money...LOL) and there are plenty of devlopments in the same area so I can shop around a little, my only worry is I need to complete by March in order that I don't lose my buyer.

    I guess once Christmas Day is out the way, all the buliders will be advertising their new year deals anyway ;)
  • Doozergirl
    Doozergirl Posts: 33,813 Forumite
    Name Dropper Photogenic First Anniversary First Post
    If the house is built, the developers will be eager to get someone in asap.

    I'd start 20% below and not move too much from there. It worked once for us before. :o Are they offering many incentives with it? You can tell how desperate thet are by the amount of the incentives. What you must do is discount everything already offered and know that is their real asking price. ie. if they're offering 5% or stamp duty or whatever then take the amounts off the asking price and know that is the real asking price - any idiot can get it for that. You need to knock further than that. Don't ever be swayed by talk of extras and incentives, just talk cash.

    All 'extras' will be bought far cheaper the MSE way.
    Everything that is supposed to be in heaven is already here on earth.
  • dolce_vita
    dolce_vita Posts: 1,031 Forumite
    Yes. I forgot to mention what doozer just said : don't let them waffle you with talk of throwing in free carpets, cookers etc.

    Negotiate on the price of the house alone and ignore any such offers.
    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
  • Doozergirl
    Doozergirl Posts: 33,813 Forumite
    Name Dropper Photogenic First Anniversary First Post
    dolce_vita wrote: »
    Yes. I forgot to mention what doozer just said : don't let them waffle you with talk of throwing in free carpets, cookers etc.

    Negotiate on the price of the house alone and ignore any such offers.

    It's true. It just confuses the issue and confuse you is what they are trying to do.
    Everything that is supposed to be in heaven is already here on earth.
  • Rover
    Rover Posts: 323 Forumite
    The.Real.Me wrote: »
    Thanks once again, I will give it a real go on Saturday, I have nothing to lose (only money...LOL) and there are plenty of devlopments in the same area so I can shop around a little, my only worry is I need to complete by March in order that I don't lose my buyer.

    I guess once Christmas Day is out the way, all the buliders will be advertising their new year deals anyway ;)
    I'll PM you later.
    anger, denial, acceptance ;)
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