New Build - What to offer?

dodgy

Hi,

We're viewing a new build property tomorrow, it's been started and is due for completion in July. It was on the market for £425000 (Jan-Mar), and was dropped in price this week to £359995 (hence our interest).

Given the drop is so recent, do you think there are still negotiations to be done? We have a house to sell, but as we own it will look to get a mortgage on the new house before selling our old one (and then repaying a substantial part of it). I guess in real terms this means we are equivalent to "first time buyers", so I hope would be in our favour.

This is the last property of this type to be sold on the development, so that (apparently) is the reason for the drop in the price.

Any advice gratefully received.

Thanks

Really2

dodgy wrote: »

Hi,

We're viewing a new build property tomorrow, it's been started and is due for completion in July. It was on the market for £425000 (Jan-Mar), and was dropped in price this week to £359995 (hence our interest).

Given the drop is so recent, do you think there are still negotiations to be done? We have a house to sell, but as we own it will look to get a mortgage on the new house before selling our old one (and then repaying a substantial part of it). I guess in real terms this means we are equivalent to "first time buyers", so I hope would be in our favour.

This is the last property of this type to be sold on the development, so that (apparently) is the reason for the drop in the price.

Any advice gratefully received.

Thanks

You wont get a massive amount of until it is built. Untill it is "stock" they will hold out for the best price.

macaque_2

dodgy wrote: »

Hi,
We have a house to sell, but as we own it will look to get a mortgage on the new house before selling our old one (and then repaying a substantial part of it)

Have you started Friday afternoon drinkies a bit early? Falling house prices are a racing certainty. Against this background you are proposing to protect the builder from future losses but leave yourself exposed by holding two properties at once. You are crazy!

In answer to your question, you might think about asking discount of 40 - 50% if you want to control your risks.

Markyboy1972

I would want to pay for an independant valuation - bearing in mind that if you need a mortgage, the mortgage valuation will be very mean. Mortgage Valuations are currently typically lower than any online calculators/index by as much as 25%. Many Lenders have directed valuers to value based on near auction/repossession prices to ensure they are taking the lowest level of risk possible.

Anyway, I would not be paying that price personally and you must negotiate hard even with a lower starting price. They should be taking your arm off and you should ignore the recent price reduction. If they are asking for £359,995, I would be looking to take at least 10-15% off that - you will lose that in the next 12 months anyway, IMHO.

Hope this helps ... my advice, don't be shy and get a discount!

Good luck ...

ad44downey

dodgy wrote: »

Hi,

We're viewing a new build property tomorrow, it's been started and is due for completion in July. It was on the market for £425000 (Jan-Mar), and was dropped in price this week to £359995 (hence our interest).
s

By June the asking price will be 300K or less. The only way for new builds is down, way down

dodgy

Thanks for the comments. We'll see what happens tomorrow, but if we like the property will push to see how flexible they seem.

Although it would make more sense to sell our existing property we are moving to a new area to be closer to family following the birth of our son - waiting to sell means a longer time until we can move, but also has implications on trying to transfer my partners job to the local office near the new home. Sounds crazy, but perhaps makes a little sense.

We will, of course, put our current property on the market as soon as we move (well, as soon as someone has been around it with a paint brush), and look to sell it for a realistic sum which we would then throw in the mortgage on the new property. Luckily we bought this current house 8 years ago so still have some way to go before it gets close to the purchase price.

40-50% discount? They'd laugh us out the sales office I'm sure. Their price cut this week represents a 15% discount - I was hoping for something like having the stamp duty paid, and any more I'd be quite happy with.

Markyboy1972

Dodgy,

Appreciate the other factors that make your decision a tough one ... think you have got to get a decent discount on the current price, despite the recent reduction.

The recent reduction is an indication of the level of interest in the property and the builders anxious. You must get another 15%... go for it... if you don't ask you don't get.

Start low and you can come up... start high and they accept and you have nowhere to go!

Keep smiling and congratulations on the birth of your son.

Good luck...

Cleaver

dodgy wrote: »

Thanks for the comments. We'll see what happens tomorrow, but if we like the property will push to see how flexible they seem.

Although it would make more sense to sell our existing property we are moving to a new area to be closer to family following the birth of our son - waiting to sell means a longer time until we can move, but also has implications on trying to transfer my partners job to the local office near the new home. Sounds crazy, but perhaps makes a little sense.

We will, of course, put our current property on the market as soon as we move (well, as soon as someone has been around it with a paint brush), and look to sell it for a realistic sum which we would then throw in the mortgage on the new property. Luckily we bought this current house 8 years ago so still have some way to go before it gets close to the purchase price.

40-50% discount? They'd laugh us out the sales office I'm sure. Their price cut this week represents a 15% discount - I was hoping for something like having the stamp duty paid, and any more I'd be quite happy with.

It sounds rather suspiciously to me that you're planning to buy this house now for a price you can afford and then go about living your enjoyable life with your family in your new home in a carefree way? That's not going to go down well in some parts here fella. Not down well at all.

I suggest getting property bee, a copy of Excel and start logging prices each day in a spreadsheet. Try to let it take over your life if you can (this always helps) and complete it over a number of years. When prices reach a plateau you may be tempted to buy, but still try and resist if you can. It may be 2016 by now, but don't let that put you off. After two houses in the same have sold for up 2% more than your baseline, bottom figure, you buy a house. Only then my friend, only then.

Markyboy1972

Cleaver wrote: »

That's not going to go down well in some parts here fella. Not down well at all.

With a young family and wanting to be settled and have some 'roots', waiting til 2016 may not satisfy his emotional needs.

As for your comment (above), I would suggest that MSE is for all people, regardless of how good or bad they perceive their financial position to be.

I say that everyone is welcome and that all pictures painted by posts should be respected. You have shown respect by giving your opinion and some advice re future house prices... allow him the same respect.

All said in a warm and friendly way... :A

dodgy

I'm not trying to make money, I'm trying to move my new family to a location that they want to be in. I'm fortunate that we own our current house, and fortunate that it gives me some options that may not be open to other people. It doesn't, however, mean that I want to be fleeced, nor does it mean that what I am proposing will be easy for us. It does mean that I am looking for advice from people who know better than me and that was what I was hoping for rather than responses that tell me I'm not welcome in this forum.

Cleaver

Markyboy1972 wrote: »

With a young family and wanting to be settled and have some 'roots', waiting til 2016 may not satisfy his emotional needs.

As for your comment (above), I would suggest that MSE is for all people, regardless of how good or bad they perceive their financial position to be.

I say that everyone is welcome and that all pictures painted by posts should be respected. You have shown respect by giving your opinion and some advice re future house prices... allow him the same respect.

All said in a warm and friendly way... :A

I was being sarcastic Markyboy. But thanks for the advice. I've printed out your post, laminated it and put it next to my PC for future reference.