First time buyers

Minky25

My partner and i have seen a house we like on a new development. Its on the market for £342,000.00 however have been told that offers can be made. Can anyone advised me what price we should go in at, also they are only going to pay 1% stamp duty and provide carpets only. As we are fairly new to this can someone offer assistance as we want to get this house but at a reasonable price with all benefits such as legal cost, stamp duty and some discount off the price.

lynzpower

Is it in an area with a lot of new builds? If you could let us know there might be some knowledge on it here

HAve you got your agreement in principle yet?

Minky25

Hi

Its in a new development with around 100 houses being build, however this is the first phase and there are only 7 houses to sell. We are told that the whole development with take about 2 years to complete. The property is in Barkingside, in east london.

And no we have not got any agreement.

lynzpower

First off what you need to do is to go to an all-of market broker such as Alexnder hall, take all your documentation ( payslips, bank statements etc) and apply for the mortgage. ONce you have got an AIP or Offer in Principle, then you are in a position to put in an offer. If you dont, you could end up stung, ie the bank wont lend you the mortgage you need.

My personal opinion is that 342 is high for east london, and I wouldnt pay it, as I believe that prices around here are on the downturn. Been looking about in EAs recently and although there are no huge falls in for sale prices, things are looking slightly cheaper than they were a few months ago. How big is the property?

Minky25

Its a 3 bedbroom semi-detached property, all 3 of the rooms are good sizes. What price do u think we should go in at?

meanmachine_2

Is it the Century+ development by Persimmon?

A quick check on rightmove came up with that site under the new homes section of Barkingside.

I don't know the area, to be honest. You tend to get the best bargains when developers are keen to offload the last few properties in any phase.

340K sounds a lot to me, but at this early stage the developer might not want to budge on the actual sale pirce - hence why they're throwing in the other enticements.


If you're chain free and have everything in place, however, then you could be able to bargain down.

Play hard ball. These new homes are anything but rare.

lynzpower

I couldnt really say unless you have your OIP/AIP really,

Jorgan_2

You need to be in a strong position to be able to get the best deal. As has been said, get an AIP with you mortgage, find a solicitor that you want to use, without this info the bulder isn't going to look to favourable on you.

Minky25

It is the Century+ development. My partner and I have a very good deposit, and have enquired about mortgages. Surely would it not be best to verbally agree price then proceed with mortgage as we will be able to get on.

I have had a look at other developers around the area they tend to offer 5% deposit (minimum) stamp duty and legal fees. All this developer is doing is paying 1% stamp duty and payment for carpets, no kitchen appliances etc

nmiah786

Have you looked at the George Wimpey development in Chadwell Heath. They are doing 5% deposit and 3% stamp duty incentives.

Their selling 3/4 beds for £300K, maybe use that as comparable when negotiating with Persimmon?

Edit: yes I know theres a difference in area (barkingside & chadwell heath) but no harm in using it as negotiating topic!!!