buying a part exchange from builder

Lady-g- · 9 June 2009 at 9:49AM

Hi everyone,

im hoping for some guidance!

im considering buying a house which is owed by a builder as the previous owners have part exchanged the house for a new build with the builder.
it only came on the market last week but we have been waiting for a house to come up in this area (as we previously offered on an identical property round the corner but it fell through due to it getting repossessed instead!)
So the property has been valued at 140k and its on at a fixed price of £140k. i made an offer last week (day after it came onto the market) for 130k and it was rejected, no surprise there. i then went back yesterday and offered 135k which was also rejected.
im not sure what to do now, i could go up to £140k if i go for an 80% mortgage instead of a 75% mortgage but i thought no one was paying full asking price in a market like todays??
and the rate on the 80% isnt that great comapred to the 75% mortgage.

Obviously the builder seems in no hurry to get rid and there are a few more folk going to see it this week. i really want the property, should i bite the bullet and offer the full asking price?

Ive had a look at previous sales on this street but im just not sure what to do with this data! the last identical house to sell on the street sold at £162 in june 2007.

any thoughts?

thanks in advance

Benji_Brown · 9 June 2009 at 8:06PM

It depends how much you want the house. If there is lots of interest in the property, it may go for the asking price. 140k seems a good price if it was on the market at 162k a year ago. However, anybody will be unlikely to accept on offer if they have other viewings coming up. If it was me, I would wait until the end of the week and put forward your offer of 135k again.

If people have offered higher, they will reject yours and you know that you have to increase your offer. If they havn't had a higher offer, they are more likely to accept your offer and you havn't had to increase unnessecarily.

Good luck