Strategy for newbuild house - stupidly low offer?

Natty082

Well I would have taken the offer but my dad and my boyfriend said not too and let them come to us.... Its a housebuilder that hasn't been in the media yet so maybe they aren't that desperate..... yet!.... I'm dying to call them but being shouted at not too!!! :embarasse

I was told it was because they don't want it showing on the Land registry for a low price.... but after checking it for properties they have sold on the development the 'sold' price is the asking price, so how would anyone know what it sold for!! don't get that one

poppy10_2

They mask the sold price by giving "incentives" rather than cutting the price - e.g. cashback, free carpets/furnishings/cars, mortagge subsidies etc.

Don't call them, unless it's to remind them that you will still consider it for your negotiated price

bubblesmoney

only u can decide what the property is worth to you. how ever in the present market good bargains can be had for people willing to take risks in a falling market like now.

see how i have negotiated my offers for a few 6y old properties. in advanced stages of negotiation and now price difference is 5k between my price and vendors price. but i am sticking to my guns and looks like they are giving in. i offerred 125k for 4b detached with garden etc in a village near metro city with in 15mins walk of metro station 1/2h by metro train from big metro city. they rejected my offer, slowly i increased till 135k which is my final offer. that property was attractively priced at start at 155k by undercutting similar houses on same development by 20k-30k, then they slowly came down on price. as per their indications from EA looks like i will get it pending them making sure i can afford property. but since they rejected my offer earlier i havent decided whether to take them up yet as now in the meantime i got better houses in same development via other EAs probably willing to decrease asking price of 165k to my tentative offer price (prior to viewing, to get me interested to view property) of 135k as per my discussions with EAs over few days. so there are bargains to be had if u negotiate hard. basically they seem to be willing to sell the house to me for exactly the same price that the same house was sold for in early 2003 as per prices available on www.nethouseprices.com and i still havent made up my mind on vendors offer to me today as they rejected my offer a few days ago for same price.

see what method i used in bargaining and decreasing chances of wasting time with EAs and vendors and useless viewings. from now on i have decided to only view houses if the vendors / EAs preagree for my budget irrespective of the asking price. no waste of time for me or EA or vendor. see details if interested on how i discussed with EAs and vendors on this thread. hope this helps other FTBs who have their finances sorted to get good bargains in present market.

strangemartian

We are in similar boat.

Our house we are trying to sell was valued at 190K in Jan this year and we went to local Bellways development to do a part exchange on a 250K 4 bed detached.
They offered us part exchange of 135K which is a joke. I know the market has fallen but 55K in 6 months, no way. I expected them to come under as they have to be sure they can sell it on and similar houses in the area are up for about 160K now.

I said to the sales woman that is too low so on the back of that we can offer 200K for yours to which head office said no way can we sell that low, 230K being the lowest. I said well we cant afford to throw money away so give me a ring if you change your mind.
I will expect a call but maybe not for 200K to start with but I am prepared to play hard ball.

geoffky

what price next year?

chezmonster

this is really intersting, we have just seen a new build that we liked and will be having our house valued in view to part ex, the development offered part ex and a 75% mortage for 100% share. That's ok but I can afford to pay almost all of the asking price in the first place. The house is £300,000 and we could afford £260000 do you think it would be worth asking to pay 100% but at £250000?

chezmonster

I should of said the rest in rent free and intrest free but you have to pay it back at market value if you sell or in 10 years which ever is sooner.

Not some thing i am too keen to do.

Treadmill

chezmonster wrote: »

this is really intersting, we have just seen a new build that we liked and will be having our house valued in view to part ex, the development offered part ex and a 75% mortage for 100% share. That's ok but I can afford to pay almost all of the asking price in the first place. The house is £300,000 and we could afford £260000 do you think it would be worth asking to pay 100% but at £250000?

I'm pretty sure that you won't get it for 250K if you are part exing, worth a try though.

facingthefuture

alijolly wrote: »

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.

Be really careful,I live in Derry - home of Taggart
1. Taggart are allegedly in lets just say a bit of difficulty:rolleyes:, need refinancing really quickly at the very least safeguard your money (escrow????)Maybe they would grab the dosh but then again maybe if they went into receivership would you be ok?
2. Their reputation for quality of work is S**t, indeed peeved off residents (I will pm you on this)

see this
http://www.derryjournal.com/journal/Derry-homeowners-still-can39t-sell.4289366.jp

"The effect is being seen across the market with local developers Taggart Holdings in crunch financial talks with bankers as it battles to safeguard its future.

It is claimed the firm – which has assets of more than £500 million – owes in excess of £120 million.

In January, the company which has offices in Derry, Belfast and Manchester, announced that ten jobs were to go at its building sites.

Pinch

Company founder Michael Taggart says that all developers are feeling the effects of the current economic climate.

"We have every intention of trading our way out of this position," he said. "Tell me one developer or builder who is not feeling the pinch at the minute." "


(apparently he has sold the private jet recently)
edit, I wonder who valued the 500m assets and when?

rabbit8587

Update: - Well, it has been over a month since offering £135k and so far heard nothing back. Been keeping an avid eye on the development - nothing seems to have been sold and nothing has been reduced in price. Grr! Why are they being so stubborn???!! :mad: :mad: :mad:

Also annoying is that I see them now offering 100% of the house for 85% of the price as long as you pay the other 15% back within 10yrs or if you sell the property. That means no discount at all! In fact you will probably be overpaying as 15% of the house in 10yrs time will be alot more than it is now!