Strategy for newbuild house - stupidly low offer?

alijolly

Although Yuill only build in the North East they are an established builder who have traditionally had a very good reputation. Originally a family company they were taken over a couple of years ago they were taken over by the Irish company Taggart Holdings. It might be worth looking into this company.

Always worth a try, they can only say no.

Premier_2

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!

Who's telling you that? Buyers I guess not sellers.

Buying a house comes in 2 guises.
1) Somewhere to live. If you need somewhere to live you may as well buy at anytime. It's more important to have a roof over your head than the cost. If a £1million pad is only worth £10 next week, so what? If you need to move, you'll be able to sell it for a tenner and pick up a new luxury mansion for a tenner.
2) Investment - Don't even consider buying property as a short term investment. Look at any 10 year period and tell me which one results in a loss.

Toto

Premier wrote: »

Somewhere to live. If you need somewhere to live you may as well buy at anytime. It's more important to have a roof over your head than the cost. If a £1million pad is only worth £10 next week, so what? If you need to move, you'll be able to sell it for a tenner and pick up a new luxury mansion for a tenner.

I would much rather have a £10 mortgage than £1 million.

Premier_2

Toto wrote: »

I would much rather have a £10 mortgage than £1 million.

So would I

Trouble is, you can't get a property today for £10

A property's value is what someone is prepared to pay for it. Have a look around and see what similar properties are selling for. That's the best indication of it's value...and the one most EA use when setting a realistic asking price. Why would they be setting it 30% above what they expect it to reach? All they will do is put off the majority of prospective buyers.

rabbit8587

Premier wrote: »

Who's telling you that? Buyers I guess not sellers.

Mostly biased opinions I think - reading the threads on this forum insist prices will drop anywhere from 20-50%, also the housepricecrash forum. Am just trying to get balanced opinions before being laughed out of the sales office.

These properties are being sold anywhere between £159.950 and £174k second hand. They have been on the market a long time now. I would go for the second hand ones except their position is a little vulnerable to chavs in my opinion! They would have sold for around £180k brand new though - I guess people aren't will to drop the prices as they don't want to make a loss.

It's not a forever home by any means, just a starter home. I could probably stay there for 8-10 yrs maybe. I'm certainly not planning to move out within the next 5-6 yrs.

I'd rather start at £135k and haggle up to eg £150k than start at £150k and end up paying the full asking price.

Financially it's better if I wait, but I do really like that plot!

Premier_2

Sorry, I didn't mean to mislead you.

If you are looking for a home, it doesn't really matter how long you plan to stay there. That's because if you plan to sell in say 1 year, you'll be looking for somewhere else, probably bigger if you are just starting on the housing ladder.
e.g. if you buy today for £150k, and even if prices fall by 10%, then you'll only get £135k back, true.
But the property you want to buy next year that costs £300k today will also drop by 10% so although you may lose £15k on the property you sell, you'll be getting the bigger one for £30k less. You'll still be £15k up on the deal.

Or of course, you can wait as many of those here suggesting prices are overvalued, for the day they drop, but people have been saying this for as long as I can remember. In the meantime, if they had bought 10 years ago like I did, they'd be sitting on a ca. 100% gain. Bearing in mind, I only put down about £10k 10 years ago, can you tell me any other investment that turns £10k into £110k in 10 years? (that's gearing in action)

Do I care that due to property prices having fallen by 6.3% in the last 12 months I've lost a theoretical £12k - of course I do. But realistically I'm still quids in and no one can guarantee to buy at the lowest point of a slump and sell at the highest point of a peak. Over a 10 year period, you would be very unfortunate to lose.

rabbit8587

I'm feeling a bit cheeky now, thinking of going in with an offer of £135k, it is a whopping £50k under the asking price :eek:. But only a 30% which isn't tooooo crazy in the current climate. I would be annoyed if I'd paid the top amount and I found out the neighbours had paid thousands less...

poppy10_2

£135k is too much, buddy.

Nothing is selling these days - the developer will be desperate and will grasp at anything you offer. You hold all the cards here.

Bf109

Builders are desperate.

Had a look at the Barrat'ts share price recentley? They have lost 96% of their value. in 12 months.

Treadmill

poppy10 wrote: »

£135k is too much, buddy.

Nothing is selling these days - the developer will be desperate and will grasp at anything you offer. You hold all the cards here.

You'd think so wouldn't you, developers seem to be chasing the market down though. I bid 170K on a new build priced at 190K 5 weeks ago and got no joy, its now priced at 170K but they will not accept my offer of 155K. I expect to see the price reduced to 155K soon, muppets.