Pitching an offer on new build

brit1234

Shares Equity = Bad due to overpaying on value compaired to rest of the market.

Not built = :eek::eek::eek: Stay well clear. Have you not seen all the reports in delays or cancellations in buildings. Developers are starting to go bust and this will increase over the next few months. You buy a house not built and they go under your up S**T Creek without a paddle.

Plus your be paying full 2007 prices for when its built when prices will be down 35-40% on 2007.

Incisor

northstar23 wrote: »

Yeah great point... we're about to buy a new build flat that is currently empty. One month ago the price was £135k, they've dropped it to £115k and we're planning to offer them £95k as an opening. In the opinion of the agent they are more likely to let it go for about £102k but like Sarah says, what have you got to loose?

Agents don't normally tell you that, without being told to by the vendor. £102k says they are angling to settle at £100k. I would offer £87k as an opener [nothing ventured ...] and not go above £95k

mailmannz

Or to save mucking everyone around, just go in at £95k and tell them that is your one and only offer.

After all, ninetyfive thousand pounds is a lot better than no thousand pounds

Mailman

northstar23

Incisor... funnily enough I'd like to start around that £87k mark but was talked out of it by parents on the grounds that it was taking the p***. They were more keen to go down the route suggested by mailmannz but its a bit of a conundrum in that we actually want the flat. If we say £95k is our only offer and then they call our bluff we risk paying a higher price once they know our position.

Having given it consideration I'm going to start around that £87k mark... they are desperate to sell and we have money, and like the previous post says, anything is better than no thousand pounds.

Squish_21

Ahhhh dont do it! Personally I wouldnt offer until it was built and i'd offer at least 25% less once it was built.
The new 4 bed detached homes in my area have just been dropped from £250k to £180k in one go and they are still after offers!!

Incisor

mailmannz wrote: »

Or to save mucking everyone around, just go in at £95k and tell them that is your one and only offer.

After all, ninetyfive thousand pounds is a lot better than no thousand pounds

Wot I said: I would offer £87k as an opener [nothing ventured ...] and not go above £95k

So I try to buy it:
Me: 87K
Vendor: 92K and not a penny less
Me: 90K and its my top
Vendor: You're a very hard man Mr Incisor, but OK

Mailmanzz tries to buy it:
Mailmanzz: 95K tops
Vendor: 100K and it's yours
Mailmanzz: You're a hard man Mr Vendor and I am walking away.

OK, it might not turn out my way, but you would never find out.

mailmannz

Hehe, this is true. After all, fortune favours the brave

Regards

Mailman

greenwheels007

To my knowledge anyone in business pays a third for materials/stock, adds a third for labour/marketing and adds a third for profit.

If the house you are interested in is £135K then the absolute maximum you want to offer in a buyers market is £85K. In that way the house builders break even. With many companies going to the wall (excuse the pun!) the way that companies survive is to get rid of assests and minimise loss.
We are in a different market, we do not have to beg and grovel to buy a house. If you offer £85K then you are offering the developer the opportunity to break even on a deal. There are few of them in the building trade at present.
Do not offer more than 66% of the brochure price.

And on the subject of nearly builts, i would suggest that you go to the site tomorrow and see how many people are actually working on your house, that should answer the question.

If you are a gambler then buy it part built and hire a team of builders to finish it....but that is a big risk