Buying off plan - What to offer?

Micksims

Hi Guys,

The other half and me are looking to buy our first home in Southampton, we are looking at a new build by Taylor Wimpy towards the West of town. They have one plot left which is a 4 bedroom detached with their list price of £350k. The builds are due to be complete this September and I will have about £50k as a deposit.

I have spoken with the agent there on the phone and within 2 minutes they said they would let it go for around £330k. I have been doing my homework for the area and the highest price a detached house got sold round the corner was £300k last year.

I've been touring the forums and seen a lot of posts regarding builders over valuing new builds and people getting stung on mortgages when the building is complete.

I was thinking to offer a maximum of £300k and I will pay my own stamp and fee's etc.

Does this sound mad to anyone or should I be offering more or less?

I'm a newbie here so any help is greatly appriciated.

Thanks,

Fire_Fox

If you look down the threads on the main page (or possibly page two) you will find one started by Chickmug entitled 'What to offer'.

Micksims

Thanks for that, I'm not sure if I was looking at the right post but I couldn't find anything regarding new builds?

Cheers,

CloudCuckooLand

Doesn't hurt to ask for further disounting on new builds, as you've read elsewhere. If you can show evidence from other sales, it should strengthen your bargaining position.

Apart from price, should this progress...

Any contract for a yet to be built property needs to have a long-stop date that fits in with your mortgage offer date, and/or penalties in place for developers failing to complete on time.

Kyrae

I think 300K might be pushing your luck a bit, but no harm in asking! As it's the last plot they might be in a hurry to sell it. Good to see you've read up about the valuation and mortgage problems just incase!

itsakidsworld

In property, no offer is a bad offer. It is all about how strong minded you are. If your maximum is going to be £300k then start lower. Crazy maybe but it grabs the interest of the seller/agent and ask them to keep you informed. You may be amazed at what you can achieve. I know of many developments where the prices have not only tumbled but people have been accepted with the most ludicrous offer!! Cheeky pays!!

roger196

Insist that your solicitor includes a "subject to mortgage clause" (if mortgage offer is withdrawn you can get out of the contract) and that you can withdraw from the contract if the property not completed by end of December 2010. Remember everything in life is negotiable.