How much should I offer

amit1_uk

Hi All



My wife and I are first time buyers, looking to buy a house and have seen a new build house that we like. We have half of our deposit and will have the whole amount in Feb.

I have spoken to the developer and they have said that if I want them to hold the house until feb I will have to pay the asking price or very close to it.

The house is a 3 bed in Reading with a asking price of £237,950.
Any ideas on what I should offer??

I am sure they would move on the price but seeing that I have not done this before I would like some sort of idea on a offer price..

Thanks

doire_2

amit1_uk wrote: »

Hi All



My wife and I are first time buyers, looking to buy a house and have seen a new build house that we like. We have half of our deposit and will have the whole amount in Feb.

I have spoken to the developer and they have said that if I want them to hold the house until feb I will have to pay the asking price or very close to it.

The house is a 3 bed in Reading with a asking price of £237,950.
Any ideas on what I should offer??

I am sure they would move on the price but seeing that I have not done this before I would like some sort of idea on a offer price..

Thanks

For a FTB its a brilliant time to buy. Economy a mess, motgage lending on its knees, interest rates can only go up, people fearful of their jobs and huge cuts on the way.

I'd wait if i were you

diable

Tell the developer you will have to think about it and look elsewhere in the meantime unless he comes up with a decent offer.

Strings

offer full price, then reduce it prior to exchanging contracts.

FTBFun

doire wrote: »

For a FTB its a brilliant time to buy. Economy a mess, motgage lending on its knees, interest rates can only go up, people fearful of their jobs and huge cuts on the way.

I'd wait if i were you

OP - best ignore extreme posts like this.

I was an FTB a couple of months ago, and before you consider how much you would like to offer, it is worthwhile doing some research.

Firstly, you would need to consider how much you can afford. That doesn't just mean mortgage repayments right now, but also other expenditure you wouldn't know about as a tenant, such as buildings insurance and repair work, which could bite you in the !!!! down the line. Also, it is useful to factor in interest rate rises that may happen in the future (although the signs are not quite right for that yet, and I assume you'll get a fixed rate first).

Secondly, try and compare it with similar properties and how much they went for. A good resource for this are websites like www.zoopla.co.uk and www.nethouseprices.co.uk, as they link from the land registry.

Thirdly, take a look at similar properties on the market at the moment and what there asking prices are.

IMO you may want to look to wait until you have the full deposit in place, but in any case, good luck with it all.

RichPyke

It all depends on if they need to sell or want to sell as I have just found out. It makes the game of cat and mouse harder if they only want to sell but don't have to sell.

It also depends on how sales have been in the area and the prices sold for. Plus holding until Feb is a big issue with getting a great deal.

Personally I go in at around 20% below asking, it always gets rejected but is a good start for negotiations. There are such things as second and third offers for a reason :-)

If you really want it and it's a good price then go for full asking or around 5% below. If you want a good deal but at the risk of not having it held until Feb, go in at 20% under and work from there.

It's a buyers market and it's only busiess after all. You want the best deal, you shouldn't offend anyone by offering 20% under, not in this market... I've heard people offering 30% under and getting for less than 20% under.

doire_2

FTBFun wrote: »

OP - best ignore extreme posts like this.
.

Why is that? Its relevant to whats going to happen to house prices

BitterAndTwisted

Indeed. I wouldn't be putting in any offers or committing myself to buying anything until I had the whole of the deposit saved and more. Lots could happen between now and February

nearlynew

House prices have been falling for a while now and continue to do so.


I would hang on until february and if the house is still for sale offer about 180k and take it from there.

hazyjo

Don't agree that any house in any area should be going for between 10-30% under its asking price! It absolutely depends on the road and area. Where we're looking, most (not new) houses in the development are going for very close to the asking price and all that were on the market have sold. It's a desirable road so the houses haven't hung about for very long.

Reading's gone down, yes, but it's held its value relatively well from what I'm led to believe because commuters are seeing it as affordable with a short enough journey into London.

I'm presuming there are other houses in the development? See how many are sold. If this is one of the last ones to be snapped up, you probably won't get it for a bargain price. If none are selling, I'd personally hang on and risk losing it and put in an offer nearer the end of the year, or put an offer on the table and say it's there if and when he's ready to accept - then walk away. As a developer, he'll probably be dropping the prices each month. Bit of a gamble though. I'd not pay the asking price unless it had just been reduced. Definitely compare against other prices for similar sized properties. If you think £237,950 is a fair and reasonable price and say 50% of the houses were sold, I'd imagine you could get it for £228,000 max. If it's a one off, I'd again make sure I thought it was a fair price, then offer somewhere in the region of £214,000 and try to get it for no more than £228,000.

I'd take all developers say with a pinch of salt. All you can do is compare it to what's available at what prices, and with other properties in the development.

We looked at new builds last year and they were giving it all 'prices will go up when the next phase is completed, you could reserve one now at this price, they're not really taking offers, blah blah...' but now it's a year later, prices have stuck, the houses haven't sold and they are taking offers. They always give it a bit of Billy BS so don't get drawn in, just check out the market and see what else you could get in that price range.

Good luck!

Jx

rrf494g

If you end up falling "in love" with one house and have to have it, you will end up paying more than you need to. No bad thing if that's ok with you. If you want a bargain, then wait until you have the deposit and are a "real" buyer. Then make offers on suitable houses that are way below asking price and see what conversations start up. You can always offer more if you really want to. Don't believe car salesmen and house developers (as a general rule).
regards