Strategy for newbuild house - stupidly low offer?

rabbit8587

Before anyone starts shouting at me, I'm not saying I'm going to buy right away! Just testing the water.

There is a new build development by a fairly local company almost coming to an end near me. (Around 25 houses left to sell, only a few more to build). There is only one plot left that I like enough to buy.

The house is going for £184,950 and then your usual 5% deposit paid, free flooring etc. I have been with my partner for 4.5yrs and we each still live with our parents. I am tired of living out of a suitcase and do not want to continue doing it for another 3 years (when some ppl say the market will steady). Though I do not mind doing it for a while longer.

I am happy to wait but would be pretty gutted if this plot went to someone else.

It is hard to tell if they are in financial difficulty as they are so local I cannot find any opinions on them (they are called Yuill).

We have saved a minimum deposit of £65k and would be getting a maximum mortgage of £89k.

I'm thinking of going to them with an original offer of £135k (on the £185k house). I'm sure they'll laugh in my face but if I leave them my number they may eventually get in touch?

Or am I stupid here in thinking they may accept such a low offer rather than giving it to somebody else?

Thoughts welcome

pickles110564

Offer 130K and leave your number, if it is a large enough development they will still make a profit out of the one you are looking at.

carpetbelly

Totally agree... As some people say, if you're not embarressed by your first offer, it isn't low enough

What's the worst that can happen? They'll laugh and say no then maybe come back to you later trying to haggle you up from where you started.

poppysarah

Go for it. What have you got to lose?

mrs_deadline

I think they might call you back eventually, but about one of the less desirable plots not the one you have your eye on.

wymondham

I'd offer £130k and let them know this will go down £1k each week..... this should be interesting!!

Premier_2

rabbit8587 wrote: »

...I'm thinking of going to them with an original offer of £135k (on the £185k house). I'm sure they'll laugh in my face...

Let me start the ball rolling :rotfl:


There's a new build near me that's been on the market for the last 18 months, so don't hold your breath. The market has fallen by 6.3% in the last 12 months not almost 30%! If the developer was prepared to accept 30% less, there would be people camping out overnight to be first in the queue.

sarkin

The problem is the developer can not affor to cut the price as this will set a precedent for the rest of the propertys and the surveyor will look at all prices sold in the last 3 months. However at some point he will have to cut his losses as they just will not sell, looks like he is hanging on or there are no offers.

rabbit8587

Hmm starting to feel more unsure now!

All I know is people are saying houses are 30% overpriced and anyone buying now is a fool.

Some people have even told me if I bought that house now it would only be worth 75K a little later. I would be stupid to pay full price and risk losing so much.

confused!

wymondham

rabbit8587 wrote: »

Hmm starting to feel more unsure now!

All I know is people are saying houses are 30% overpriced and anyone buying now is a fool.

Some people have even told me if I bought that house now it would only be worth 75K a little later. I would be stupid to pay full price and risk losing so much.

confused!

the fact is that if you purchase now, especially new, you will lose. If you're happy for this then that's fine - it's really only a decision you can make...

sympatex

Rabbit - i'm FTB with gf who recently pulled out of a sale because of falling market and rising costs. I don't know where you live and you would probablly appreciate housing is a very localised issue!

I have (extended) family in Norfolk who recently went to buy a new build property for 240k, i don't know the exact details but when they went to sign they said what they really wanted was the more expensive version 275k (for arguments sake) and somehow managed to get that for the 240 they originally had agreed on getting the smaller house for. I don't know how all that came about but so don't quiz me on it.

Anyway, i very much doubt a builder will except a 30% reduction, that number is simply plucked out the air, noone knows for sure. it's a test of nerve for you and the builders. If you really want it you will have to pay for it and all the consequences (spelling) that go with it good or bad. i'd keep a close eye on the development and see what happens, if they are all getting snapped up you will have to make the decision if they're not, then it can only get cheaper from here on in.