Offering on a new builds - 20% off asking price?

scw1

We are deciding over the weekend whether to go for a new build (have seen the other threads on here about problems etc so know what to look out for but these 2 particular houses tick all the boxes).

The first house is on at £160k - it doesnt have any fitted cupboards, carpets or fitted kitchen appliances which I know they do. How much would you offer first? They sold for £149k in 2006.

The second is on at £189,950 and that is fully carpeted/has appliances and a conservatory etc. How much do you reckon. Checked on netprices etc and no other similar ones have sold so not sure on that and its a new development.

Anyone help me please

devon_guy

It's all irrelevant asking people on here to be honest. The only person that can answer for you is the developer. People will come on here telling you to offer about 50p and walk away but that's all total jack. A developer will not let a property go for a pittance. If you come in with a sensible offer they might talk to you, if you go in with silly offers like some people suggest on here, you will get laughed out the door and not treated seriously.

terrierlady

time to make your mind up what do you want discount or appliances and carpets? wont get both dont just offer without doing your homework WHATS IMPORTANT TO YOU not anyone else YOU

emam

Hi, I have looked into buying a new build and got some good advice from the folks on here about haggling!
Before giving an offer you need to be totally clued up. Go on the land registry site, to see how much house prices in that area have fallen. Also look at similar property prices for this area; these will one day be your competition when you sell, so you need to be able to be competitive! Through doing this, I found that the property we were interested in was 46 grand more expensive than similar properties in the area. We were doing part exchange, at first Bellway were offering us 15 grand off; but when I started realing off fact and figures for the area they wanted to give us 30 grand off!!! We decided to sell independently in the end, but knowledge really is power!!! plus the builders end of year is june, so sales people will be desperate to meet their targets inorder to get their bonus's! all the best!

scw1

Thank you for your replies. I just feel so clueless.

My husband has just discounted the second one so we are going for the first one. I have done a bit of looking around and will continue later but think I am going to start at £150k and go from there.

Rated_*R*_Superstar_2

We have agreed a purchase on a new build @£185k a few weeks ago. Identical properties on the same development have sold at £240k-280k as recently as 6 months ago. Unless the developer can demonstrate that they have dropped their prices compared to sale prices on these properties in the area from the last 12-18 months you should be looking at a minimum 20% reduction in asking price. If they have already demonstrably dropped prices they are unlikely to move as much.

If they are near the end of the development they may be more keen to make a deal at a reduced rate, but if they still have a lot of land to develop they will be unlikely to go too low. This is because new prospects later in the development will see the "low" price previous homes have gone for and will be seeking to pay no more than this.

Also consider if you want any "extras" out of them. They will be more flexible on extras if they can keep the "headline" sales price higher, so if you are gonna buy appliances/alarm system etc anyway, it could be worth trying to negotiate it in with the offer.

Good luck!

shininghero

my colleague just bought a 3 bed terrace (new build) in Liverpool for 169k. Was on for 235k in Dec 2008. Nextdoor sold for 212k in Jan 09. My colleague initially agreed to 190k in March, but when his mortgage people came to assess the property he said the house was only worth 165k, so eventually the builder dropped the price again. I think there is still a lot of scope for negotiation. i personally would offer -20% to kick off the negotiation

scw1

Thanks everyone for your replies. We have had a 13k discount off the house plus will have it carpeted and stainless steel sink and cooker as opposed to a white one. So we are pleased. Although there were 2 plots available last week and unfortunately the one we really wanted (but couldnt do anything about at teh time) has gone but at least we got one of them.

poppy10_2

Try posting a rightmove link, we can give you suggestions on what to offer

merlinexcalibur_2

we reserved a property for £180,000.was on for £219,000, dropped to £199,000 later to £184,950 in 8 months time.i tried haggling a bit..started at £165000...onto £175,000.the developer wont budge even for £178,000, but ultimately settled for £180,000.Similar property sold for £185,000 last month but the asking price was £189,950.bottom line is they allowed roughly £5000 discount.i spoke to the negotiator who told me that the property has come down a lot and the builder is not prepared to go down any further, in fact i am having to pay £540 extra for tiles here.

everything depends on whether the builder has financial power mate...if they have no cash flow problems, theyll hold on for ages without selling.Thats my humble opinion