Negotiating with persimmon homes

Dazsharps

Hi All,

Long time lurker first time post, so sorry if its in the wrong place.

I wonder if you can help me...

I have had our home valued by 4 different agents who each agree an asking price of £99,950 with a view to getting offers of between £95k - £97k would easily sell on the open market.

Me & the wife have seen a persimmon (new build) in our area. We recently have had their guys out for part ex valuation and they have offered us 85k after telling me they would offer a fair valuation so that we can proceed to buy there house.

One of the valuers they sent knows me and told me the figures he would give to them is 97k open market 92k 6 week sale and 89,950 4 week sale. So for them to come in at 85k is a cheek.

What i am asking for is advice as to how to proceed with the negotiations with them? The house we want is listed at 219,950, what would you say would be the correct amount to go in with, bearing in mind their half year figures are due on June 29th?

i was thinking 185,000 what would the rest of you think?

Please dont come back with DONT GO NEW BUILD, we have thought about this long and hard. We are not in love with the plot but it is top of our list.

Its a 4 bed detatched in a good area.

Any help would be greatly appreciated.

Many thanks in advance.

ILW

If your current property is truly worth what the EA says. Why not just sell it and forget the PX.
Persimmons half years figures may not give you any help as they may have a balance sheet value of £210k and not want to show the loss in this quarter.

Dazsharps

Thank you for your reply, i am now considering that option and would obviously be in a stronger bargining position then wouldn't i.

I am also going to play them off against a Barrat homes site nearby and see if that gets me anywhere... the missus quite likes the 4 beds on there you see.

To make this work i need to get them to 200k really for there place, i have heard tales of this happening as a couple bought a 3 bed town house off plan and haggled 45k off the price.

lovemotown

I'm in exactly the same situation as you. I have been offered a p/x valuation on mine and am preprared to take the hit of a lower valuation, but the builder just won't budge on the price of their house. They are implying that they are doing us a big favour taking our house in p/x and "we couldn't possibly reduce our prices any further than what we already have done"!

They have half an estate sat empty since completion last year, which to me says they are STILL overpriced, despite a reduction. I would have thought they would bend over backwards to try and conclude a deal even as a p/x, and be prepared to drop them again to conclude a deal. I know they would sell at a reduced price for cash (5%),without batting an eyelid, yet they can't reduce theirs for p/x when we have already accepted a lower valutaion on ours?

Afterall, they might even get more for ours than they offered us??

I just feel that p/x you haven't a hope of driving their price down and would be paying way over the odds for their house. I have come to the conclusion the only way of driving down new builds is a straight cash sale.

I just think I may have to try sell mine on the open market as I am not prepared to pay way over the odds for their's just for the "luxury" of part exing.

Does anybody else know terminology/how to go about getting a builder to accept a reduced price on their house AS WELL as taking ours in part ex?

Unlike you, I can't even trade them off against another development because there isn't one in the area.

pizzagirl

Dazsharps wrote: »

Hi All,

Long time lurker first time post, so sorry if its in the wrong place.

I wonder if you can help me...

I have had our home valued by 4 different agents who each agree an asking price of £99,950 with a view to getting offers of between £95k - £97k would easily sell on the open market.

Me & the wife have seen a persimmon (new build) in our area. We recently have had their guys out for part ex valuation and they have offered us 85k after telling me they would offer a fair valuation so that we can proceed to buy there house.

One of the valuers they sent knows me and told me the figures he would give to them is 97k open market 92k 6 week sale and 89,950 4 week sale. So for them to come in at 85k is a cheek.

What i am asking for is advice as to how to proceed with the negotiations with them? The house we want is listed at 219,950, what would you say would be the correct amount to go in with, bearing in mind their half year figures are due on June 29th?

i was thinking 185,000 what would the rest of you think?

Why would you want to deal with an organisation who, by your own admission, are trying to rip you off?

Benji_Brown

Dazsharps, I would say try offering 185,000 and see what they say. I have seen a lot of houses listed that you wouldn't believe what the builder would actually take for them. It is in their best interests to make as much money as possible and so they may turn you down to begin with but that doesn't stop you from trying again a couple of days later. I doubt that thye are being flooded with interested buyers. If they are determined not to let it go at that price, at least you know for sure instead of regretting it later on. See hwat else they can do for you as well, sometimes they may pay your solicitors fees or include carpets/curtain (if not already in) etc

AMILLIONDOLLARS

Before you commit, you might want to read the link below!!

http://forum.snagging.org/persimmon-homes/

Good luck!!
AMD

Dazsharps

Thank you for all the replys so far guys.

Lovemotown which area are you from?

I have submitted an official offer in writing today for £185,000 of course i expect them to laugh at it but if they want to offer a 12.3% decrease on mine i may as well push the boat out on my offer for theres.

Benji Brown - thanks for your help.... lets just see what they comeback to me with... there sales office was closed today but i guarantee a phone call tomorrow morning.

A million Dollars - i have read that before and trust me i will have a snagging list from hell to inspect before i complete with them ( If i can get the deal i want )

Pizza girl - All builders are in the game to rip us off, they had it too easy during the boom, makes me laugh how they still try it on when they are up the creek. I don't blame them for coming in with a low offer, i would have done the same. Just got to love the cheek

Once again thank you for all your replies, ill keep you updated and if you have any other info then throw it into the mix.

Thanks

DS

wysiwyg78

With their year end looming I would imagine they will want to shift as many units as possible for whatever price they can get them for. My friend used to work for Charles Church and said that their targets are based on number of units as opposed to profit. Knowing this she bought a new build from a different developer and got £50k off a 4 bed detached a few years ago.

Just hold your nerve with them as you are in a good position.

Wysi

lovemotown

Hi Dazsharps.

I'm in Yorks but don't want to name the builder for fear of them identyfying me through this site, (just in case they read it)?!

I have heard via one of the tradesmen who work for the builder that the prices will be coming down again shortly, so am sitting tight. (surely they have to because not one has sold yet in the style we are thinking about)?

As they more or less laughed me out of the site office when I asked them if they would accept a lower price, (coz I was p/x), I'm intruiged to see how you get on.

Please let us know how you get on. You never know if it works for you, I might have a dabble as nothing to lose.