Negotiation on New Builds

LB25

Hi,

We've seen a new build that we like but it is grossly overpriced. Its on the market for £240k but I think its only worth about £200-210K compared to other similar houses and developments in the area.

My question is how do you offer for a new build? Do you just phone them up directly and offer them a figure?

Also, are the builders willing to negotiate?

Thanks!

Premier_2

£200 -£210k???

Don't pay that much! That's far too expensive.

Take a look at the House Prices sub-forum. The experts there will give you some advice.


Edit: is this one in Scotland too, like the one you put an offer in yesterday on?
http://forums.moneysavingexpert.com/showthread.html?t=1483613

I thought Scotland usually does 'offers over' or 'fixed price' deals?

LB25

Yes, its in Scotland.

We didn't put an offer in on the one yesterday just spoke to the Estate Agent.

We want to look at as many options as possible before we sell our own house.

Premier_2

No?

My mistake I thought you had:

LB25 wrote: »

Hi,

I've just put in a verbal offer for a house that was previously on at offers over but recently changed to a fixed price. My offer was 10% below the fixed price.

The estate agent said she would speak to the seller but that she knew that it would definitely be a no as the fixed price was the minimum they would accept. She called back 5 mins later and said that they said no way. She didn't propose a counter offer at all....

I think that was pretty clear - any subsequent offer would need to be at least equal to the fixed asking price to be considered.

Still, there's still the 'offers over' possibility to explore to see if they will accept prices less than the 'offers over' price.

Unfortunately no one is going to take any offer you make seriously whilst it depends on the sale of your current property and you don't have a buyer lined up.

LB25

Yes - Your mistake!

I put in a VERBAL offer which, as you know, in Scotland isn't actually an offer. Offers have to be made through solicitors - it was just an informal chat with the EA to see how such an offer would be received.

I'm really not sure if you're getting me mixed up with someone else. There was never any talk of "offers over" so I'm not sure what you're getting at?!

I'm also confused by your comment that it was "pretty clear" that any subsequent offer would have to be at least equal to the fixed price to be considered. Who was that made "pretty clear" by?

I am further perplexed by your statement about me not having a buyer lined up. I really do wonder where you got this information from?!

zone

Yes builders are always anticipating negotation on the price and extras. What type of property is it you are interested in? e.g. terraced, semi, 3 or 4 bed.. garage?

And is £240k their original asking price or it has already been reduced? How many plots remaining?

LB25

Thanks for your reply. As far as I'm aware, £240k is the original price. I think there are quite a few plots remaining.

Should I just call them up an offer a figure?

wilkster5

I move into my new build next week, it was originally £199990, I put a verbal offer in of £139,000, this was accepted by the builders as long as it went through the solicitor. Beware though, most mortgage providers will only lend 70%-75% LTV on new builds. To get a reasonable rate I had to get the 30% deposit together.

zone

Yes call them up and make an offer. They will probably take your details down and call you back to let you know if its accepted or not.

Premier_2

LB25 wrote: »

... Do you just phone them up directly and offer them a figure?...

LB25 wrote: »

... Offers have to be made through solicitors ...

Oooh, we've got another feisty one here!

LB25

What's your issue Premier?

Why so angry?