Silly offers on new builds

janey_uk

I am looking at a new build which is priced a lot more than similar properties within half a mile. Other than being new and surrounded by some seriously swanky mansion-esque newbuilds I can't see why this one is so high. It is complete and sitting empty.

My question is, would I make a fool of myself if I offered 25% less than asking price to a developer, and has anyone had similar success in the current financial situation?

missile

Developer will most likely regard you as a time waster.

If there are similar properties which are equaly desirable eslewhere, why do you want to buy this one?

theGrinch

each case is different and it will depend on the developers individual circumstances, but you are probably 9 to 12 months too late for blanket reductions I feel.

janey_uk

I would like a new house - have never had one before. Similar properties doesn't mean the same or mean equally desirable to me, just similar size, plots etc.

About timewasting - that's why I'm asking... I don't think all low offers are timewasting - my neighbour just bought a house for 30% under asking price, it just wasn't a new build, hence I would like views on whether developers work a bit differently. Your answer would suggest you think they do?

missile

janey_uk wrote: »

Similar properties doesn't mean the same or mean equally desirable to me, just similar size, plots etc.

Have you thought that this may be why the developer is asking £100K more for his development?

my neighbour just bought a house for 30% under asking price

We all know of such stories :rolleyes:

Your answer would suggest you think they do?

No, but I do feel the developer will have researched house prices in the area better than you appear to have and will have taken this into consideration.

marcg

I can't understand the attitude of the other posters above. What harm can it do? Make your offer and wait and see. If the developer is in a real financial bind he might rather have £30k shortfall on his borrowing rather than £100k shortfall - cutting his losses. Are other people really worried what EAs or developers think of them?

LittleMissAspie

I don't see the harm in asking either. I suppose it depends how much you want it and how much you'd be prepared to pay. If 25% off is the max you'd pay then why not ask? You might get it, if not then it's no loss to you.

parallax_20

With the increase in house prices over the last 6 months, I will doubt there would be much price reduction now as the housing market appears to be stabilising again. All the repossessions that were out in the open market 12 months ago that were driving prices down, have almost disappeared. So very few bargains to be picked up at the moment.

You can certainly put in the offer you feel is right. But based on the the information you gave regarding its location and surrounding properties, they would have priced it appropriately for the area.

Your neighbour who bought for 30% less was under difference circumstances. It was a private owner, probably in a different location, and possibly overpriced by the EA or the owner, owner were desperate to sell. Without knowing the exact scenario you can't really use it for comparison to the properties you are looking at.
Therefore what they actually paid was probably the realistic value for that area, and therefore didn't get quite the bargain they made it out to be. Thats my view without doing further research on sold prices in that area.

mbga9pgf

My advice would be to hang on. We have reached peak optimism of the mini boom imho, what follows is crash redux.

Once the election is over, consider the effect of 20% vat, higher fuel duty and lots of civil servants out of work.

expect at least another 10% fall. The key time to catch the market is when it is falling, and as alluded to earlier, not once the price falls are complete.

Milliewilly

marcg wrote: »

I can't understand the attitude of the other posters above. What harm can it do? Make your offer and wait and see. If the developer is in a real financial bind he might rather have £30k shortfall on his borrowing rather than £100k shortfall - cutting his losses. Are other people really worried what EAs or developers think of them?

Yes people are quick to leap to the defence of mortgage surveyors who undervalue.

Emy1501

New builds are always vastly overpriced. They are just like a new car as soon as set foot in one you lose about 10-20% as they are no longer new.

No harm in putting in a low offer especially if there are alot still empty.