Negotiating price on new build

babybiscuit76

I am new to this forum but I am very keen to ask some advice (so apologies if I am doing this wrong!!)

We are currently thinking of moving house and upon looking have found a new build that offers a part exchange deal.
This means they will buy our current property from us meaning we do not have the hassle of trying to sell in the current market or having to pay out on estate agents fee's or having to deal with time wasters. Obviously we realise that the price they offer could be lower than what we would like.

My question is on the new property the asking price is £204,950 for a 4 bed detached with garage and a reasonably sized garden.

In todays current state of affairs what would people recommend as a reasonable starting price to offer on this property?????

(we are aware that there has to be x% difference in price between our's and the new property we are interested in to qualify for the part ex deal)

Can anyone shed some light on this as we have never negotiated on a new build before and are curious to know if we have the upper hand due to the current market and house's not selling.

Thanks in advance!

Want-a-house

babybiscuit76 wrote: »

I am new to this forum but I am very keen to ask some advice (so apologies if I am doing this wrong!!)

We are currently thinking of moving house and upon looking have found a new build that offers a part exchange deal.
This means they will buy our current property from us meaning we do not have the hassle of trying to sell in the current market or having to pay out on estate agents fee's or having to deal with time wasters. Obviously we realise that the price they offer could be lower than what we would like.

My question is on the new property the asking price is £204,950 for a 4 bed detached with garage and a reasonably sized garden.

In todays current state of affairs what would people recommend as a reasonable starting price to offer on this property?????

(we are aware that there has to be x% difference in price between our's and the new property we are interested in to qualify for the part ex deal)

Can anyone shed some light on this as we have never negotiated on a new build before and are curious to know if we have the upper hand due to the current market and house's not selling.

Thanks in advance!

In good times you pay a premium for a new-build, but in a recession that premium gets eroded, or disappears altogether. Builders may slow down their building, even moth-ball sites, but they still have to generate cash flow, still have to sell houses. As the recession wears on they may even start under-cutting the price of pre-owned homes to attract sales.

Given this my advice would be to check the asking prices & sold prices of equivalent pre-owned homes in the area and aim to get a deal that matches, or undercuts those. At the very least you want 20% off Sept 07 prices...

BTW if you are doing part-ex you will find you have less negotiating power...

Feline_friendly

We are just going through the part ex with Wimpey.

They origianlly offered us £10K below the market value of our home...i do advise you to get an independant EA to come and value your home for you as the EA's that come to value it for the developer are not allowed to tell you their findings! When Winpey offered us this amount we said no it was too low and asked for £5K more and knocked off £10K off the house we are buying so as to take us below the Stamp Duty.. My new biuld was reduced by £30K a few weeks before we reserved, so are happy with the deal we got.

I think there has to be at least 30% between your house and the new biuld.

SolicitorMidlands

We have just bought a 4 bed for 129,995. There was no movement on price, unsuprisingly, but we did get flooring, legal fees and survey fee included.

underlay_guru

SolicitorMidlands wrote: »

We have just bought a 4 bed for 129,995. There was no movement on price, unsuprisingly, but we did get flooring, legal fees and survey fee included.

129,995....Where???? We are looking for somewhere in the east lancs area (OH works in Preston, I work in Yorkshire) but only need 3 bed. Anyone recommend some developments???

magicjohnson1984

Hi guys,

My fiancee and I are in the same position, however we are first time buyers looking at 3 bed town house in South Lincolnshire. This is on the market for 189,950 but we are looking to opt onto a 75/25% shared equity scheme.

Does anyone have any recommendations on what price we should be aiming at due to our decen posion as FTB's?

Cheers