New build

Tiganda

Hi

Me and my wife are looking to buy a persimmon new build, we are offering £170,000 for a 4 bed detached which is up for £209,995 with 5% deposit paid. This offer was rejected by persimmons, i was just wondering if any one as any advice on how to proceed? I will leave some details below as to what the situation is.

We have a deposit ready and a mortgage lined up

They sold a same style house that had its shell built for £174,995 in september. (this one just as foundations in)

Said the least they could go to was £189,995

The plot has been for sale for a year

Thanks for any advice and tips given

SolicitorMidlands

Have you told them that you know one only sold for 174k last September?

They probably think they could sell the house a few times over before it's been built so they aren't that desperate yet.

We had a similar experience - foundations in and they would not accept any reduction on the price at all.

What are you willing to pay?

Tiganda

Hi

No we did not tell them that, as i found out the day after putting our offer on the table. As they have not reduced the asking price in a year i feel that with the downturn in the market that £170,000 is a fair reflection on its value when it would be built in about 6 months time. I was also hoping with it being march they may want to hit some targets before the end of the financial year. I wonder if they are just seeing if i will raise my offer.

Thanks for your reply

poppysarah

They may well be waiting to see how much you are drooling over the property.

mark5

Was there a part-exchange involved for the £170000 purchase. I done a part ex and market values were paid but while looking at nethouseprices i seen a Neighbour with a much larger house than myself had paid £2000 less than me, i was gutted at the time.

Having lived in my house for a few years and knowing my neighbour quite well I now know he also did a part exchange where the builder paid below market value for his house while knocking a big chunk off the price he paid for his new home.

nethouseprices etc dont always show the full story!

mark5

174,995 not 170,000, sorry!

RetroBob

http://forums.moneysavingexpert.com/showthread.html?t=1542195

New build beware.

Tiganda

Hi

No there was not a exchange involved. Yeh i thought they may well just wait to see if i up my price. The gang they have working on there are good and so the work should be up to scratch.

Thanks for your help

Home_Swap_Advice

It all depends on what you are willing to pay for the property. They may be telling the truth when they say that the lowest that they will take is £189,995 but it is still worth making an offer.

However, I would not base your offer on what prices will be on 6 months. Nobody knows what prices will be in 6 months and I doubt that the builder will take this point very seriously. Offer what you think the property is worth. If they reject it, wait a few days and see if they come back to you. At least then you know you are getting the best price.

Tiganda

Yeh thats what i think its worth, if the same house is worth £175,000 in september. I cannot bring my self to bid above this in March for the same house.

Thanks

GDB2222

I think that buying newbuild at the moment is a mug's game.

First, you do not know when the property will be built. See all the horror stories on here about people who are locked into contracts and have no idea when the property will actually be completed. Some of these contracts have overrun for over a year. During this time, the buyers have lost their mortgage finance offers.

Second, prices are dropping very rapidly still, and you are contracting now to buy something at today's price that will be much less valuable by the time you actually receive it.

Third, if the builder gets stuck with a large chunk of the estate but nobody wants to buy, it may will get turned into social housing, which is very nice but does rather reduce values. (I am not suggesting that people who live in social housing are not perfectly nice respectable people, by the way.)

Fourth, You run the risk that the builder will go bust before your house is completed.

Of course, none of this applies where the property is actually built and the estate is completed, but that does not seem to be the case for you.