New Build -Negotiating Best Deal Pls Help -Is this too cheeky, will they laugh at me?

masonj3

Hi,

Im looking for some advice on how best to negotiate a deal to purchase a new build which I have had my eye on for a few months. {Persimmon}

According to property bee the style of property was first advertised at £269k approx 12 months ago. When I was looking at the property back in Sept it was on offer at £259k. I tried to negotiate but they refused and I didnt hear from them again.

The plot I was originally interested in has been reserved and I've had a leaflet this morning saying that they are now offering part exchange on selected plots.

Before I do anything I would appreciate some advice / help from you experts please lol x

The property is now advertised at £239,995k. As I have a property to sell I "think" part ex may be the best option for me??

My property is valued at approx £155k but I know that Persimon wouldnt offer me that price. Ive had a few ideas but part of me thinks Im asking for too much but then another part of me thinks well if you dont ask u dont get.

The property is now up at £240k, firstly I was going to try and knock the price down say by 25% to say £180k. If sucessful I was then thinking maybe of offering my current property as 75- 80% of the negotiated price and then to repay the remaining share over 10 years, as part of their equity /
helping hand scheme.

As I said Im probably being far far to cheeky, but that way we wouldnt require a mortgage, I know that the amount we repay is subject to market
value at the time we repay but based on some rough calculations we could easily afford this.

We want to move as quickly as possible and due to my husbands disability I would need to be spending money to have back garden paved for ease
of maintainence purposes and we would like a small conservatory added on too.

So is it worth a try or am I totally doolally ??
Thanks x

poppysarah

Near me they were selling new builds for 250k. One sold at auction for about 113k in the last few weeks.

How badly do you want to buy an overpriced newbuild?

Robert_Sterling_3

You will be up against a professional experienced negotiator. You will be offered a good part exchange price for your property and think you have got a good deal. :eek:

thebaldwindowfitter

you can only try but i doubt you will get that much off and bear in mind that this so called over priced properties have also helped to increase the price of yours.

natman

HI

i am going through purchasing a new build and part exchanging, and personaly i have been happy with the results.

The new home was on the market for 235k 9 months ago, and had just been reduced to £219, 500
I had a valuation on my property , which came back at 140k.

The 1st thing i got the builder to do was make me an offer on my current proprty, so i knew where things stood financially.

They offered 135k - of which i was fine about accepting.
then i said their house was too dear, would they drop it to 195k -
they refused and said they could go to 209k.
i refused this and said 200k, they would not accept.

i waited a couple of days, and they rang an highlighted the minimum they could go was £204,950.

i went in and spoke to them and managed to get stamp duty paid for too - £2050.
I accepted -
Things to think about -
my current house was being bought for 135k, I had only 25k outstanding on a mortgage, so i was putting all this down as a deposit - 110k
so basicaly needed a mortgage for 95k

THIS ALLOWED A LOT OF FLEXIBILITY WITH -
new mortgage offers
most lenders are looking at 75% loan to value so i was borrowing less than 50% and in the credit crunch market, i suppose i am attractive to lenders.

i suppose what i am saying is - ok financially can you afford it / can you get a motgage?
whats the house worth to you???
my house may drop more , but long term it will pick back up again.........

i am releived that the builder took mine as part ex so no hassle, estate agent fees, HIP, so save around 2k there.

hopefully -
i am happy
builder happy
also assisting the economy....

win win for me

masonj3

Thanks Natman for explaining that , prob best to negotiate in stages then.

I really want to move, the house is in a by far nicer area etc and I agree that it may well drop slightly more in price but in the long term things will pick back up again.

Despite really wanting to move, I can wait but this is the best area / style of house that I ve seen for a very long term and all in all would be ideal for us.

We can get a mortgage but didnt really want to and was hoping that my suggestion wouldnt be completely out of the question and would at least give us the scope to start negotiations.

Appreciate everyones opinions so far - Thanks x

natman

Hi.

Another thing to consider is your part exchange - new house difference.

Many developers will only part ex if you are spending more on a new house -
for example in my case -
The house was on for £219,500 and they would only consider part exing if our house was under 150k,

just a thought.

Also your view on this being a house you like in anice area, is a real must personally for me too.
Put a piccy of teh new house and lets have a look.

Heres mine just so you can have a nosey too.

http://www.morrishomes.co.uk/find-your-perfect-home/fulwood-park/plots/1365/details.htm

good luck!

gemmalouanna

masonj3 wrote: »

Hi,

If sucessful I was then thinking maybe of offering my current property as 75- 80% of the negotiated price

The new build companies want you to pay 30-40% more than what you get for yours, so you would need to pay more for new house/accept less for part-ex

masonj3

Thanks again for info on difference between properties, the one we wish to purchase is more than the one we would be selling but i prop need to revise my calculations a little lol {thanks}

Here is the link for the development for anyone who wants a nosey
http://www.persimmonhomes.com/detail.aspx?development_id=361

Is it best to go to the showroom to reqest a part ex valuation or should i ring and try and arrange it, the development isnt very close to where I am living at the moment but i do know the area well

Thanks everyone x

NoDebtForMe_2

Hi
It looks like a lovely home for the price.
You could ring them for the part exchange incentive to be activated I should think in view of the distance. When I went through the process with mine, they just sent two high street EAs to value it and they gave the builder 3 prices but they never revealed what they were tbh (get your own valuation done by a high street EA too so you have a "ball park figure") The part exchnge bloke from my builder did visit after them though to evaluate himself as well. I do believe though that some builders insist on taking a surveyor with them to do this process and charge you for it up front. Like I said though I didnt have this until we had agreed on some figures and then they paid for their own valuation/survey so I didnt have that extra expense. I didnt realise at the time that they dont usually do Part ex when you are buying off plan either...clearly needed to sell their property you think?
I have noticed you want to part ex and do their share scheme. I am not sure they will do both as well as give you a reduction in the asking price but someone in the know may have a better idea than me. Doubtful though.
Good luck, I hope you achieve all you need to and please keep us updated as it is nice to follow.
Sarah

masonj3

Thanks Sarah, I dont think they will agree to both offers either but guess if i dont ask i'll never know lol.

Think will proceed with a part ex valuation and see what stems from that. Will keep this thread updated but their show home is closed after today until Thurs so will be a good few days prob b4 I've anything to report.

Just out of interest do u need to sign anything / provide any docments for a part ex valuation as prefer to be prepared in advance being a shift worker and all lol

Thanks x