New home

richie_greenuk

Hope I can call on some advice.

We need a new home due to a growing family and have seen some lovely homes we really like a nice area. However, they are £175k and having read a number of the posts on the forum, it seems we should go in and negotiate. At £175k it is at the very top of our budget, so was thinking 10% - 15% off? But we have a property to sell and they do part exchange so we would need a good price on ours in order to get the deposit. Do you think in todays market the builder is likely to give us a discount and a good part ex price? If I lay my cards on the table and say this is the situation, are they likely to take us up on the deal?

The home is here: http://www.millerhomes.co.uk/explore/NorthEast/10841/housestyles/4651. The property is built and sitting at the moment as are a few others on the estate which makes me think they would do a deal if we moved quickly???

Doozergirl

If it is built, you are far more likely get a better deal - they have a good marketing run up time on these properties so they should be bought by the time they're built.

Normally you're not in such a great position if you're part exchanging but going in with what you can afford and being completely unable to stretch upwards will help you get a better price because they can't bully you into paying more.

WIth part exchange they will be expecting a 30% difference between the price of yours and the price of theirs.

richie_greenuk

Thanks for this - the whole estate is built and I would estimate around 20% are still to be sold.
To be honest, our maximum we can pay is £155k but should we tell them this or let them offer us the discount? When do we start talking about our property - we would need our deposit to come from our property so would be needing a good price.
I have been in a similar position with Wimpey and we found they actually offered us more than our asking price in order to secure the part ex deal - it fell through in the end because of the mortgage but this time we have an offer in principle already.

Natty082

Go in for 25% off at first...... negotiate up

We've just bought a Miller Home - we didn't part ex tho. Don't expect a great deal on Part Ex but then again its rid of the hassle of selling your property, and the money yur losing monthly anyway.

richie_greenuk

25% off is a great start! We need a decent part ex price for our deposit - unless they can give us half of this also.

What were Miller like to deal with?

Natty082

richie_greenuk wrote: »

25% off is a great start! We need a decent part ex price for our deposit - unless they can give us half of this also.

What were Miller like to deal with?

sent you a personal message

Treadmill

if you are part exing the only thing that matters is the difference, decide what you can afford and aim for that. Knocking theirs down or bumping yours up amounts to the same thing really.

richie_greenuk

So are you saying 15% on the house we are looking at at and 5% extra on our house as an example if I am looking for a 20% reduction??

Treadmill

Simply put what I'm saying is this, if you can stretch to an extra 60K mortgage for example it makes very little diffence if you part ex your house for 140K and pay 200k or if you part EX yours for 120K and knock theirs down to 180K as you will still only need to borrow the same 60k extra to purchase. Don't get hung up with the price at one end of the deal or the other, negotiate to close the gap between the price you are paying you for your property and what you are paying for theirs, however you close this gap matters little, its the extra that you need to find that counts.


Its likely they won't budge much on the price they will accept on the new build house because you are part exchanging, also a lower sale price devalues the whole development, paying over the odds for your house however will not reflect on the development or show up on nethouseprices etc at all so the development holds its value, consider anything over what you would be happy to accept for your your house as a discount on their house, obiously this strategy affects LTVso does not suit everyone, especially those without much equity.

Natty082

Treadmill wrote: »

Simply put what I'm saying is this, if you can stretch to an extra 60K mortgage for example it makes very little diffence if you part ex your house for 140K and pay 200k or if you part EX yours for 120K and knock theirs down to 180K as you will still only need to borrow the same 60k extra to purchase. Don't get hung up with the price at one end of the deal or the other, negotiate to close the gap between the price you are paying you for your property and what you are paying for theirs, however you close this gap matters little, its the extra that you need to find that counts.


Its likely they won't budge much on the price they will accept on the new build house because you are part exchanging, also a lower sale price devalues the whole development, paying over the odds for your house however will not reflect on the development or show up on nethouseprices etc at all so the development holds its value, consider anything over what you would be happy to accept for your your house as a discount on their house, obiously this strategy affects LTVso does not suit everyone, especially those without much equity.

Are you in your new place now treadmill!?

Treadmill

I completed and got the keys today, I have a licence to stay on in this house until next friday so we have a week to move across.

I'm glad its not me trying to sell this house now, theres been one viewing in the two months since persimmon agreed to take it as part ex and started marketing it, and its the cheapest house of its type around here by a few grand.