House Price Negotiation

noopys

I am a first time buyer, with a substantial deposit, in the process of buying a 4 bedroom detached new build in the North West.

The asking price of the property was £195,000 and I initially negotiated a price of £190,000. I didn't push too much on the negotiation as I wanted to reserve the property. At the time it was the only plot of the particular house type remaining and had just become available again as the previous prospective buyer pulled out as they were unable to get a mortgage.

The house builder has put a similar plot for sale at £189,950. They also contacted my solicitor to say that if we exchanged before the 22nd Feb they would be willing to drop the price of the reserved plot to £180,050. However my solicitor had a number of outstanding queries which they had not yet answered and my lender has taken some time in processing my application to the valuation stage. So that date was not feasible.

I have seen that the same house type and similar plot size were sold in October for £180,000.

I believe I am in a strong position as the sales rep for the house builder has told me they are eager to shift the plot before the end of March and the house is almost completely built, so they probably don't want a finished house sitting on their books.

I haven't yet exchanged contracts for the property as I am awaiting the valuation survey report and the mortgage offer. I intend on renegotiating the price of the property prior to exchanging.

I am thinking of asking them to drop the price to £175,000.

Is this the right kind of figure I should initially put out there?

I want to be taken seriously and also get the best deal possible.

Any thoughts and suggestions would be most helpful.

Milliewilly

No harm in asking - I bet the valuer will value it lower than accepted anyway.

noopys

*bump*

Anymore suggestions please?|

Doozergirl

I think you've got the right idea. No harm in trying. It's going to be harder negotiating backwards rather than forwards but if you are genuinely prepared to stand your ground then you're more likely to succeed.

Good Luck

noopys

Thanks Doozergirl.

Anymore suggestions anyone??

mr_fishbulb

noopys wrote: »

Thanks Doozergirl.

Anymore suggestions anyone??

Do you already know what you want to hear?

Two people have said there is no harm in asking, and you originally put the question up on Tuesday. How long are you going to leave it?

Must be quite a weight on your mind at the moment - just ask and get it over and done with. They worst they can say is no, and you were already prepared to pay that amount originally.

noopys

Thanks for your reply mrfishbulb.

No I'm not looking to hear what I already know, on the contrary, just trying to find out if anyone has any further advice or strategy to employ in order to get the best possible deal.

Obviously the house builder is going to deny my first offer, where do I go from there? Should I just stick to my guns?

The sales advisor is trying to get in touch with me in order to finalise everything and I'm keeping quiet at the moment and letting my solicitor liaise. Best approach?

jeffmasson

they want to sell buy the end of match as thats year end

noopys

How important is it to the builder to sell units prior to financial year end?

jeffmasson

it's vey inporant to all companys we go mad at my work trying to get every thing we can out the door by years end. the better you books look for this year the easeir it is to borrow and buy on account ect

noopys

Cheers Jeff.

I'll see how far I can push them and will post progress.