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What should I offer for new build

Hi,

I was wondering if anyone is willing to give a bit of advice on what would be a reasonable offer on a new property (new build).

The plot has just come available again after the initial sale fell through. It is a popular house type on a really nice plot so not something that is likely to stay on the market for any length of time.
The property is going to be available at the end of January and the builder has said that they are looking to offer part exchange on our current property. Based on the % the sales person is allowed to offer between the part Ex and the "value" of the new house she has said that it would be 6K less than the minimum we were hoping for but without us asking said that there were things that could be done around reduction of the price, extras, help with deposit and stamp duty.

The house is on the market at £220 and I was planning on going in at 198,000 with Stamp duty, removals, turf, fencing and floor coverings included. With the P/X difference this would effectively be a bid of 204,000 not counting the extras thrown in. Too high an offer or too low?

Previous prices for same house type in same area
June 2009 - £220K
Nov 2009 - £214K
Sept 2009 - £215K
Dec 2006 - £247K
Oct 07 - 249K

Any advice/thoughts appreciated

Comments

  • Dave101t
    Dave101t Posts: 4,157 Forumite
    buyers market, id offer sub 200k.
    id also get a full survey done, new home in winter = leaks galore (potentially)
    Target Savings by end 2009: 20,000
    current savings: 20,500 (target hit yippee!)
    Debts: 8000 (student loan so doesnt count)

    new target savings by Feb 2010: 30,000
  • A full survey would be a waste of time on a brand new property, as it's not been built yet! Maybe a professional snagging firm?

    Any builder offering px overprices their houses big time. A freind of mine just got 50k off a 350k house and 100% value px for his, so there is deals to be done.
  • spud211
    spud211 Posts: 56 Forumite
    Not trying to be rude, but do a search for "new build offer" on the forum and you'll find hundreds of threads with exactly the same question :) I'll pretty much copy/paste my answer from a previous one - its valid for your situation too :)

    Depends on the area, but I think thats a bit ambitious considering you are going down the Part-ex route.

    Big deciding factor will be how desperate they are to sell that particular property. The fact that they are willing to do a part-ex on it suggests that they really want to sell it and don't think they will get a straight sale on it, so thats a positive sign in terms of getting discount ,although I urge you to look again at the property - think "whats wrong with it", developers never put their best properties/locations on a scheme.

    22k is probably a bit much but you might get 10k..again depending on how desperate they are to sell. Upgrades and legal fees are a good possibility depending again on build stage.

    The worst that they can do is say no anyway, so ask away! They won't decide to not sell it to you just because of a cheeky offer, and you never know, they might say yes
This discussion has been closed.
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