How much to offer on a new build

NUFC_Rob

offer 75% of asking price - they can only say no...

emam

the problem with lenders and new builds is that historically many have been overpriced and so in the current market they could plunge new buyers into immediate negative equity! banks are being cautious about new builds especially with regards to their valuations, thus many builders are now being less greedy with their pricing! i didnt realise that you needed at least 15% deposit fo a new build and spent a frantic day going round the banks after i had put my deposit down to reserve the property! the big banks want 20-25% deposit, many dont accept gifted deposits from the builder etc! Nationwide were the only lender we found who do not base the application on the fact it is a new build, they go by the prices of property in that area. we were also advised by our builder to go through the new homes mortgage group as they offer protection against the valuation falling through!

Muhasib

NUFC_Rob wrote: »

offer 75% of asking price - they can only say no...

Isn't that what Mike Ashley would be happy to accept? :rotfl:

terrierlady

i love this site and everyone who contributes, i look at offers all day long and most make me smile, think of 10% max , 25% in your dreams....:rotfl:
Many new homes developers are ahead of target at this moment in time the market has changed for new builds each development are selling at least 1 a week so dont bank on slow sales. Offer what you feel is your comfort level ,new homes have changed over the years, well worth a look,standing stock will give the best discounts so if the house is ready bid low good luck keep us upto date.

Kyrae

We went through New Homes and had nothing but problems! They charge £99 just for giving advice, plus £250 if you don't let them arrange life insurance for you. You'll be able to find brokers elsewhere who are completely free and get their money from commission off the mortgage companies

Have a look at this thread:
http://forums.moneysavingexpert.com/showthread.html?t=1937187

Also, i've been told that Nationwide surveyors tend to value new builds based on their second hand value so their valuation may come back less than you're paying for the house. Someone else on the forum might be able to confirm whether this is true or not

ray123

Offer them a handful of magic beans.

Why not rent for a couple of years before you make the next step on the property ladder? I would be unwilling to commit to a purchase off plan in what must be the most unpredictable property market in history.

There are so many negitive factors involved strangling any real recovery in the housing market.

I would advise that you rent for 12-18 months - until after the general election.

PasturesNew

How much you offer is like playing poker. It's a lot of bluff.

Somebody I know is about to make an offer and they don't seem to have got a good deal, the developers say there's a lot of demand (they would), but at the end of the day if you want a house, THAT house, then you have to decide where to draw the line... you won't know for 2-3 years if you got the deal of the century or not.

The deal currently cut by my friend is a pretty p155 poor: 5% off, front garden landscaped, interior decorated the colours they choose, carpets throughout, extra shower fitted over the bath.

It's all about feeling happy with what you paid for what you get - and the intangible benefits you see to choosing that one house over any one other.

nervousftb_3

recently got a new build for nearly 30% off the asking price, but it was already built and the last one on the development to sell, so they were probably pretty keen to get rid....

RJP33

We recently brought a new build for 30% off an asking price that had already come down in price for a couple of months ago. They were really struggling to find buyers who were in a position to buy with the current mortgage situation so we we’re in a very strong position. The key thing here is that because new build mortgages require such high deposits compared to a year ago (minimum is generally 20%) the builders are really struggling to get enough serious buyers to meet their already reduced prices. Not many people can afford the types of deposits required for new builds. Take advantage of it and start off low, well below the top price you’re prepared to pay and give yourselves good room for negotiation.

DeadCat

Kyrae wrote: »

We went through New Homes and had nothing but problems! They charge £99 just for giving advice, plus £250 if you don't let them arrange life insurance for you. You'll be able to find brokers elsewhere who are completely free and get their money from commission off the mortgage companies

Have a look at this thread:
http://forums.moneysavingexpert.com/showthread.html?t=1937187

Also, i've been told that Nationwide surveyors tend to value new builds based on their second hand value so their valuation may come back less than you're paying for the house. Someone else on the forum might be able to confirm whether this is true or not

Do not go through New Homes Mortgage Helpline as they work for the developer and not for you.

I've just had a valuation carried out which was instructed by Nationwide and it is true that they are valuing based on the property's second hand value.