Asking Price £359k, What about sale price?

plzsm

hi
would appreciate some advice if possible
seen a house we like - a new build by Miller on an estate with about 15 properties for sale. The house we like is the show house and is on for £359K.
What would be your first offer and what do you think would be an achievable sale price. The sales advisor was suggesting about £10K is certainly on but we were hoping for a lot more
our position is we have sold, in rented and have a mortgage up to £330 already approved.

Pee

My understanding is that desirable properties are moving pretty quickly at the moment, although this doesn't mean that they will continue to over the winter or next year, when they may very well drop again.

Of course, noone really has any idea what is happening, so it's a gamble you are taking. That strikes me as quite a lot of money to be gambling with and on a new build... If you are confident you can pay the mortgage even if interest rates were say 10% and that you could manage if job losses became more of a problem, then go for it. You'll be able to find out how much the other properties sold for, that should give you a better idea.

Cannon_Fodder

Showhomes are usually kept until the end of the development, and if they have got what they wanted across the rest of the development they will definitely take an offer.

Do your research on www.houseprices.co.uk for what the rest of the development went for, especially if you can identify the same model of house.

At a rough guess, I'd say start 10% under...although check for any earlier price drops on Property Bee, so you don't offend the Developer so badly they think of you as a time-waster.

Find comparisons of similar, but established, properties. Make sure the "new" price and showhome condition does not blind you to its real value.

Jomo

Show homes have always been grabbed up so I doubt there'll be much need for them to drop the price anymore...you will probably have some competition.

superpacman1972

Yeah, showhomes are usually sold pretty quick as they are usually top spec and have a generous plot. In some cases they are sold to people who work for the building company, with their staff discount of course.

plzsm

many thanks for all your comments
i think they are really useful
i have offered £330 and had that rejected.
The assistant said that she had £11k to work with which would bring it to £348K
When I pushed she said that they would probably take more off but not much, I got the impression it might be an extra £3-5K so maybe £342 or £340 at a push
I could go to £340 all but the problem is the stamp duty which makes my best offer £331K
i guess its a case of waiting to see if they change their mind

lowtidesurf

You have to ask yourself, Is the house worth it?

Some houses are worth paying the asking price espically on a new build and even more so on a show home. If I were you I would make an offer you know will be excepted i.e. 345 but then ask it to be left in show home condition. I.e with carpets beds and decoration. Also it might be worth asking if you can get them to pay part of your deposit for you to lower the price further.

Cannon_Fodder

Leave it for a few days, see if you get a callback...

plzsm

thanks lowtidesurf
i agree with you
personally i'd says its worth £345-350K
its just my budget only goes to £340K, it does include all carpets fittings and even pictures/mirrors
dont quite follow what you meant about asking them to pay part of the deposit? can you explain?

cheers again
Ed

lowtidesurf

Personally I would not buy a house which was right on the edge of my budget anyway. I am currently after a 177,000 house but could afford over 200,000.

You never know what costs will come up in the near future. You have to be carfull and make sure you have enough money for other things if they arrive i.e car break downs or accidents.

If your on your limit and the solisitors ask for an extra grand how are you gonna afford to pay them?

Ewarwoowar2

lowtidesurf wrote: »

Personally I would not buy a house which was right on the edge of my budget anyway. I am currently after a 177,000 house but could afford over 200,000.

You never know what costs will come up in the near future. You have to be carfull and make sure you have enough money for other things if they arrive i.e car break downs or accidents.

If your on your limit and the solisitors ask for an extra grand how are you gonna afford to pay them?

Also, you don’t know what’s going to happen with property prices and interest rates. House prices could still have 20 – 30 % further to fall in the next few years. This is likely to happen if the government begin to push up interest rates.

You could be hit with a double whammy when you come to renew your mortgage – negative equity and higher interest rates.