Making an offer on 'off plan' new build..?

jade1986

Myself and my partner are first time buyers and decided some time ago that we would like to buy a new build property on a certain local George Wimpey development.. Ideally we would like to buy Dec/Jan time

We have been waiting for a certain two identical plots to become available for a while, and they now are, but a little more than we expected. Because of the prices of previous properties on the development we were expecting/hoping it would be around £115k, and that we could possibly put in an offer of £100k (with the extras below)

The houses will be ready in December. The list price is £122,995 but she said today that she could do a deal and straight away knock £4k off that, £118,995

The package offered is as follows:

5% deposit paid
Carpets throughout
Appliances fitted
£500 toward legal fees

By December we will have our own 5% deposit (£5k) plus a couple of grand for fees, odd bits of furniture etc.. but obviously we were working on the basis of us putting an offer in of £100k (We are looking at a 90% mortgage where they are happy to accept 5% deposit from us and 5% from George Wimpey)

Based on the figure she gave us (£118,995) and the extras, what do you think we should offer? I was thinking £110k, but does this sound reasonable? We could then add another £500 to the deposit and still manage.

I welcome your comments.

Thanks

Idiophreak

110 sounds entirely reasonable to me, may even start from a little lower - they can only say no.

Obviously, with them giving some "extras", they may negotiate less on the price, but you can only try.

Oh...and be prepared for a lot of "never buy off plan" comments and snide remarks about buying at the moment - they'll be along any minute...

Good luck!

jade1986

Idiophreak wrote: »

110 sounds entirely reasonable to me, may even start from a little lower - they can only say no.

Obviously, with them giving some "extras", they may negotiate less on the price, but you can only try.

Oh...and be prepared for a lot of "never buy off plan" comments and snide remarks about buying at the moment - they'll be along any minute...

Good luck!

Thank you for that.. Haha I was expecting some of those

It's all very daunting, this making an offer business!

lincroft1710

The reasons why most people will say "don't buy off plan" are firstly, house may not be completed by due date, and secondly, house prices may have dropped further by this time or builder willing to strike better deal to shift unsold houses later in year.

chickmug

5% deposit paid
Carpets throughout
Appliances fitted
£500 toward legal fees

This sort of inducement has always been the normal, with many builders, even in good selling times. So I tend to feel they are what you should expect when looking, at new homes, as part of the basic spec. So don't get too hooked on the fact they are doing you a favour.

I have said so many times over the years those who offer less will buy at a lower figure than those who try and pitch at the level they feel is fair. So go even lower than others have already said - nothing to lose.

Keep the emotions out of it.

jade1986

chickmug wrote: »

5% deposit paid
Carpets throughout
Appliances fitted
£500 toward legal fees

This sort of inducement has always been the normal, with many builders, even in good selling times. So I tend to feel they are what you should expect when looking, at new homes, as part of the basic spec. So don't get too hooked on the fact they are doing you a favour.

I have said so many times over the years those who offer less will buy at a lower figure than those who try and pitch at the level they feel is fair. So go even lower than others have already said - nothing to lose.

Keep the emotions out of it.

Thank you for your response.. I take on board the info re. inducements, and that those offers aren't going to disappear.

However, 3 similar properties on the same development were advertised only a matter of months ago, due to complete in June, and we were hoping that maybe one of more of these may still be for sale later in the year, but they had all sold by about a fortnight ago.

So now these 2 have been released for December, and after them there are only another 3 three bedroom properties, which are the last to be built, and will be in about 2 years time apparantly.. So we don't really want to miss out of one of these 2

NoDebtForMe_2

jade1986 wrote: »

So now these 2 have been released for December, and after them there are only another 3 three bedroom properties, which are the last to be built, and will be in about 2 years time apparantly.. So we don't really want to miss out of one of these 2

Dont take for red that these houses will be built in 2 years time.
I moved into a Bryant home newbuild (part of george wimpey) end of April. We were due to move in end July beg Aug!
The land opposite was due to be released "about a year an a half from when we reserved ours", - they are starting them in the next month havong already sold them and released the next phases which were due two years or more from now! The houses on here are being sold waaaay in advance.
sarah

Treadmill

I would offer 100k, they can only say no. 20% below the list price is a good start.

Fire_Fox

Are you sure you can afford this house? You say you've been waiting for the plot "for a while" but you have only managed to save £2500 each?

Beardmidget

Definitely go in at 100k.

As for the inducements- let's face it- I would Expect carpets and some appliances fitted in an old house, so why shouldn't they be in a new-build? They're unlikely to be of the standard you'll want in a few years anyway. The deposit paid is just another way of saying £x off the price, and the legal fees are the same.

Best of luck.

pinkshoes

5% deposit paid = at least 5% over priced...

Carpets?? They'll put really cheap ones in, and getting a carpet fitted really isn't that expensive.

Appliances?? They should be standard in a modern fitted kitchen. Ours were.

£500 legal fees? Make sure they don't force you to use their solicitor. You should ALWAYS use your own.

I'd say £100k is a good starting point too. And don't expect it to be finished on time!