Reasonably urgent, cheeky offer advice?!?!?

yakyak

Looking for a starting point for negotiations on buying a propery, to be bought using a PX scheme, where the property is being bought off plan.

At this point its probably worth mentioning that we are not desperate to move, and are not in a massive hurry.

Basically own our own home, independently valued by 3 estate agents for around 150k for a quick sale. We were going to sell our home and buy another property - we may well do so, but this development is quite interesting to us.

The building company have said they use 2 of the estate agents we have already had out, so we know the exchange value of our current home.

We are looking at a property that is yet to be built on an existing housing development. The asking price is 262k.

Having never part exchanged before (first time buyers last time) how low do I go in at for the new property? Threre are probably a number of variables I have missed for an accurate figure, but just looking for a figure where other people may have started at, and a figure where they eventually ended up.

Really looking to get under the 3% stamp duty threshold, but what is a realistic discount? Talking to some of the people in the area who already have bought, they seemed to get reasonable discounts, but felt too embarassed to ask what the asking price was and what they eventually paid!

Any help would be appreciated - we are speaking to the developer in the very near future...

poppysarah

Want a discount? Then don't be silly about buying a new build. They're overpriced and if you can't live without brand new flat walls then just get a plaster in to your existing home. They'll board and plaster your existing rooms and make it as small as cosy as a new build.


They will want 250k for it.
You won't be able to negotiate on your house price if you part-ex and if they do and sell it for more then it's you who loses out.

Catblue

yakyak wrote: »

Really looking to get under the 3% stamp duty threshold, but what is a realistic discount? Talking to some of the people in the area who already have bought, they seemed to get reasonable discounts, but felt too embarassed to ask what the asking price was and what they eventually paid!

The price paid will be on the Sold Prices of Rightmove (and various other sites). Often the price for a new build includes carpets, appliances, tiles etc. so you'd have to make sure that you account for this when looking at the sold prices.

Obviously you won't know the prices agreed on the houses that have yet to be built, but you can bet that they'll be similar to those houses that have already been built and sold on the estate.

yakyak

Thanks for the responses. The development has been going on for a number of years. They built detached at first, and then semis.

The last few detached they sold must have been for 10k off the asking price - something common to all new builds as it seems. (They all have incentives)

The properties we are now looking at are the next phase of detached. Back in early 2006, similar houses sold for 240k. (Probably all in with carpets, appliances etc) Looking at the value using nationwide, they are now worth 222k.

Also a neighbouring estate has a property of a similar style which has been reduced to around the 200k mark. (Seems very good value - the only problem is that the garden is slightly too small, and the garden faces north)

I'm thinking of 210k with some extras such as stamp duty to be paid by them, mid range carpets etc and if they say no, then I will just wait. I'll probably put my home on the market myself anyway, so not losing out trying for this new build first via px.

The developer can't start the next phase until they have sold one of the plots. Does this give me a bit more bargaing power? (The usual salesman blurb - lots of people interested, however no one is in a position to move - not enough equity in their own homes)

Am I going in too low? If they say no, then my next move is to put it on the market - something that I have already told the developer. Hopefully that will be in their mind when we discuss prices - it seems for the right price we can help each other...?

Emmzi

if I am reaing this right you want
- 52k discount
- stamp duty and carpets paid
- and them to take your place in a part exchange

Read that back to yourself. Would you go for it if you were selling?

yakyak

Yeah, I suppose. What would you suggest to offer?

Emmzi

I'd sell my own house before I made an offer. Part exchange usually finanically disadvantages you to at least the tune of the builders fees to buy and sell your house, plus a bit for them bearing the risk.

cabbage

hi

you can found the purchase price of all the recently bought properties once they have been registered at HM Land Registry.

If you don't fancy look at HMLR, then https://www.propertyprices.com will show you all the recent sales near to your postcode.