FTB and new build. Please suggest what we should do.

capstain411

I am looking at new build in Great Barr area in Birmingham. I am interested in 5 bed detached property which will be completed in 9 weeks time. My understanding is this is 3rd phase of the project and developer intends to be at the site for another 2 years and develop surrounding sites.

My mate owns similar plan house which was constructed in 2007. He paid £315k for his house ( he admits he did not negotiate well). We love the area and would like to stay there for atleast 10 years ( fantastic school, easy access to motorway and suits both our work). Although the house is not yet constructed we had good feel of how the house is going to be as we have seen my friend's and they are very happy with the build quality and have recommended us without any hesitation.

I know we would need to complete within 28days of reserving the plot.I am worried about that, but right know I want to negotiate the price first and only if the offer is accepted then decide on whether to proceed.

The builders are asking for 360k and would discount 20k being FTB.

I am thinking of offering 270k + carpets for the house ( white goods already included in asking price.

We both work and combined salary of 77k. 94k saved out of which 10k locked in stocks isa which i intend to leave untouched.

Please lets not debate about new builts or pre-owned houses being superior. We love the area so would love to own a house there be it new or old.

terrierlady

Normal to EXCHANGE contracts in 28 days and legally COMPLETE ie key in the door and move in when property ready ,ie 9 weeks u said.
Only stock plots legal in 28 days, or less.
Not normal for a FTBYR to afford a 5 bed detached, offer what you like, the developer ,will have a base price and not go below that so start low and if u need too u can go upwards.Look on the internet for sold prices rather than price list prices.

capstain411

Thanks Terierlady. When I went through the forum posts and as suggested by sales lady, they will make sure that sold prices do not reflect the true sold prices of new build. I was offered builders contribution towards house cost to end transaction very close to asking price....isn't that what happens. It is difficult for me to believe that a 5 bed detached in birmingham was sold for 350k in 2008. Which is what the sold prices indicate.

myhouse_2

Ask the builder for his best price first rather than jumping in with a low offer. His best price will be nearer your asking price which helps negotiations. Then you can make your offer and find out his real best price. Let us know how negotiations go - whether good or bad, because I might be in the same boat as you soon.

capstain411

The best offer is 25k off full asking price with white goods. That is it. She was quite confident of selling it at that price if I was not going to come back. It is a good location, but I wouldn;t have thought people will be in a bidding war with property prices over £350k, lack of FTB to initiate chain and mortgage difficulties.

brit1234

capstain411 wrote: »

The best offer is 25k off full asking price with white goods. That is it. She was quite confident of selling it at that price if I was not going to come back. It is a good location, but I wouldn;t have thought people will be in a bidding war with property prices over £350k, lack of FTB to initiate chain and mortgage difficulties.

You can get better than that or walk away. As the others said check the land registry sold prices in the area before going back to them.

capstain411

Hi Brit1234. When I lookout for prices should I be looking at prices within development or prices of similar properties in 1mile radius. Which website is the most accurate for prices.

myhouse_2

Salespersons will always give an air of confidence about selling their product (be it houses or whatever). Get down to the money talk - I'm sure they'll be delighted to listen and discuss. The amount you're looking to get off is possible (but possibly unlikely). They'll certainly reject your offer, but may get back to you after if they think it's worth talking more.

WelshNic

capstain411 wrote: »

The builders are asking for 360k and would discount 20k being FTB.

I am thinking of offering 270k + carpets for the house ( white goods already included in asking price.

What makes you think they'd knock another 20% off their already stated best price?

capstain411

A average 4 bed detached in that area 2nd hand is selling for 235k. So a 5 bed in my rough estimation brand new shouldcost 270k. Although builders are in much better position now they would definitely look foward to ftbs to offload some of their stock and improve cashflow.

WelshNic

Without knowing the exact area it's difficult to comment esp as in one breath you're saying

It is difficult for me to believe that a 5 bed detached in birmingham was sold for 350k in 2008. Which is what the sold prices indicate.

and in the next

A average 4 bed detached in that area 2nd hand is selling for 235k

A quick search on Great Barr brings up

http://www.findanewhome.com/west-midlands/birmingham/great-barr/4-bed-detached-house-for-sale/c1481dec-65bd-440a-be22-15f56078c20b.fap

with sold prices of

http://www.houseprices.co.uk/e.php?q=Asbury+Walk&n=10 in relation to that property.

I think your maths might be a little way out on this, esp when you consider developers building 5 bed detached houses aren't exactly pitching their product at the FTB market