Bidding for new build home- pls help!

ChargeHater!

Hi,

I am hoping you can help! I have recently seen a new build flat in central London which I really like and would like to purchase. My budget is 250k which is my limit, as I cannot afford the stamp duty which would be involved in buying anything more expensive. The problem is that the flat I have seen is 280k - I am not sure if it's unrealistic to offer 30k less. These flats have been on the market a few months - I am not sure exactly how long.

As I am a first time buyer I am new to this! I feel I would be more confident to offer a lower price on a second hand property as the owners want to move etc and may have offered on another property - I feel with a new build they may not be willing to negotiate.

Woudl love to hear your thoughts!

Thanks

Aisling

david29dpo

Offer £250k max and see what they say. You wont get shot for asking!

northerner79

It does no harm at all to offer under the asking price. Try to find out how many flats are in this new build scheme and how many are available. At the end of the day the price comes down to supply and demand, you will not be aware if the banks are pressurising the developer to return funds to them. I don't know the specific market you are referring too but it is common practice up north for discount between 20% and 40% being achieved, more in Leeds and Manchester.

Never be shy to offer under the asking price in this market, but it can also depend how the agent has approached the pricing! So many things to weigh up!

I have done some work as an acquisition agent negotiating on behalf of the buyer, can drive some good deals!!

snowjoe

An EA manager friend of mine feels that new builds are overprice by roughly 20%. Going on that idea the "real" value would be 224000 whilst that might not be taken seriously as an offer you may find thats what a mortgage company would value it at! There are a few threads on here where mortgage companies/surveys have come up with a very different value to the offer made by the buyer.

mystic_trev

snowjoe wrote: »

An EA manager friend of mine feels that new builds are overprice by roughly 20%.

Yes - That's correct. Surveyors will value newbuilds without their 'premium price' for being such i.e. they're now valued as if they were 'second hand' hence the reduction in value.

Cazza

Definitely worth a try with an offer at £250K. An alternative, if you are happy, if the agree to a purchase price of say, £260K, ask them to pay the stamp duty. Negotiate hard, the worst they can say is no!

cardsharps

£250K is way too much for a new build flat. It's probably only worth half that.

Benji_Brown

Wow, not a bad first property! Anyway, don't be afraid to offer "cheeky". Builders areb just as, if not more, desperate to sell their properties. It would definitely not be afraid to offer £250k and there is every chance that you could get a result, especially because you are a first time buyey, you are in a good position. If they reject your offer, don't give in to them, wait a couple of days and see if they are ready to negotiate. If £250k is your max, try a bit lower which will then give you a little room to barter.

Good luck