New Build Deal

figgles

Hi

First post here but have been reading for a while. There is a new build near our house and there is one plot available (currently mud) in the current phase which I am sure they need to sell before they release the next phase for which I know they already have some buyers lined up as the sales person has told me that. They have advised me that the plot wouldnt be finished until roughly November, December at the latest.

This plot is listed at £404K (yes, overpriced) but I've been looking at land registry details and last May a similar house sold for £410K, another 3 months later another at £350K and another sold in January this year at £300K!

We're wanting to px our house to save any hassle, the advantage of this is that we dont incur any EA fees or have to do a HIP, etc. There are two houses up for sale like our current one (albeit with smaller gardens but they both have conservatories), the lowest is priced at £235K. I'm realistically expecting them to offer £200K ish for px (although if the house sells before we move we get the selling price if it's higher, the £200K would be guaranteed though), our outstanding mortgage is about £40K.

We MAY get a call today about going in to talk to them about a deal (their px manager and 2 surveyours have already been out) so I was wondering what the best way to approach the negotiation was. I've also got an EA coming today anyway to give us prices and get an idea of how things are going locally (obviously told them we're looking to sell and want some ideas of prices rather than committing to sell).

My feelings were to go in, see what they offered initially and just say it's too high (I'm expecting stamp duty + 5% deposit paid) and wait. If things didnt move too much, I've got a map of the new estate which I've jotted down the selling dates and land registry prices for each sale of the houses in the style we are looking at (along with other smaller properties) for use as leverage.

I FEEL we're in a fairly strong position because it's the last plot, we're not actually desperate to move (nothing wrong with the house we're in, just fancy more room), have a lot of equity in our house and they have let slip about houses being sold but they can't release them yet.

I'd like any REALISTIC advice please about how to approach things. I know a lot of people advise against buying off plan, etc, but I've done it a few times before and never had issues, just want negotiating advice. Personally I think prices might drop a bit more over the next few months, but if I do a good deal now I wont be too upset. Sorry for the long post, figured trying to put all the info down was better.

figgles

Just incase anyone cares, no call from the builder today, so maybe they are not interested however I've not called them on principal that it may make us seem too keen.

EA valued ours at about £220K, view to sell at the £210K mark which does make me think the px price will be £200K or just under.

However, if anyone has any views on whether to chase the builder or leave them, or how to proceed if they do call then please let me know.

Feline_friendly

It took a week for Wimpey to get back to us regarding our part ex offer and we haggled on the phone and got our offer agreed there and then...we didnt except their first offer and we finally came to an aggreement after about 5 minutes on the phone.

There has been someone else on here who waited and waited for the developer to get in touch and they didnt, and when they finally rang the developer back up the offer they had put to the developer had been rejected and their plot sold to someone else.

Hope it goes ok for you

figgles

Well, they got back to us at 5:30, offered an insulting price for px and then when they brought it up a bit would only take about 5% off the price of the overpriced build. Obviously things are not going ahead, although it's not cost us anything thankfully.

We may sell ours privately and look at some other non new builds which are up for a minimum of £50K less than the new one.