New Builds and Part Exchange

MeShell

Slideby- the townhouses on the development i am buiying on have been reduced from £247000 to £227000 and i know that they have been selling for around the £200k mark. Compared to the type of house we have bought i think they are struggling to shift them so i think it depends on the demand. I wouldnt expect to get £140k for your current property though if that was the 2007 value. we bought ours in 2004 for £142k and in 2007 it was value at £150k. we've just agreed a figure of £135k with bovis and i think they were quite generous to be honest. I guess it does depend on area and size of property etc though so perhaps get a local EA round to give you a rough idea beforehand.
DMB1973- It is my experience form talking to other people on here and in real life that Bovis do not generally lower the selling price of the new build if you are part exchanging. You can put in any offer you want after they give you a price for your property and see where you go from there. I did get some money off of the new build but not very much (5%) but then the type of property we want is selling well so they didnt need to drop the price if that makes sense. As for our property they gave us £5k more than they expected it to sell for.
BTW did you pay a reservation fee? As you actually dont have to until you agree on a price.

As for me Bovis put our flat on the market and found a buyer all within 4 days- they havent told us but i can see its sold from rightmove!! Last hurdle is our mortgage approval which is due within the next 48 hours- theres no reason it shouldnt go through but i always get edgy when waiting for things like this!!

DMB1973

MeShell wrote: »

Slideby- the townhouses on the development i am buiying on have been reduced from £247000 to £227000 and i know that they have been selling for around the £200k mark. Compared to the type of house we have bought i think they are struggling to shift them so i think it depends on the demand. I wouldnt expect to get £140k for your current property though if that was the 2007 value. we bought ours in 2004 for £142k and in 2007 it was value at £150k. we've just agreed a figure of £135k with bovis and i think they were quite generous to be honest. I guess it does depend on area and size of property etc though so perhaps get a local EA round to give you a rough idea beforehand.
DMB1973- It is my experience form talking to other people on here and in real life that Bovis do not generally lower the selling price of the new build if you are part exchanging. You can put in any offer you want after they give you a price for your property and see where you go from there. I did get some money off of the new build but not very much (5%) but then the type of property we want is selling well so they didnt need to drop the price if that makes sense. As for our property they gave us £5k more than they expected it to sell for.
BTW did you pay a reservation fee? As you actually dont have to until you agree on a price.

As for me Bovis put our flat on the market and found a buyer all within 4 days- they havent told us but i can see its sold from rightmove!! Last hurdle is our mortgage approval which is due within the next 48 hours- theres no reason it shouldnt go through but i always get edgy when waiting for things like this!!

Hey Meshell, thanks for you input, I havnt put down the £500 reserve yet no and wont until Im very sure its all as I want it, it does seem that they dont indeed tend to negotiate on PX, however the fact they dropped from £290k to £275k without any real pressure, twinned with fact that we are looking to buy one of the only 5 houses of this style left on a large development, makes me quietly optimistic we could do a deal !? Though we are the same waiting till Thurs to have our potential mortgage value confirmed, as if that comes in low we are stuffed even if they offer us full selling price on ours, so its all fingers crossed.

micflair_2

Alright buddy, welcome to the thread.

Mine was up for sale at 80k, but hadn't had any offers for months so it was probably overpriced and 75k was a realistic price. Barratts offered me 72.5k to begin with which I laughed at, they came back and offered me 75k which I accepted. They would not go any higher on that, and they droppped the price of there house from 151k to 140k without me even asking. But that was as far as they would go - end of story. Just refuse the first offer pal as they are bound to try it on.

Keep us informed!

oggy1511_2

Defo refuse the first offer we did and we should be exchanging contracts monday hopefully fingers crossed
Oggy

DMB1973

Hey Guys and Gals, first thanks for all your input. It is a strange time, I hate grey areas lol, really just waiting now for the 3 elements: Offer, Purchase Price and Upper limit on Mortgage to all come back ! It is pretty much a given that what ever BOVIS offer will be a refusal initially on my part, as that very much seems part of there game plan and as we all know they know full well what they will go to on their offer and what they will drop to on the purchase price, its just holding your nerve to push them on both. As I say EA are confident that I should achieve around £145k so I am kind of Banking on an offer of about £135K, though I dont expect that to be the starting offer by any means ! As for the purchase price the issue in my own head is as they came down to £275K before real hard core negotiation has begun, Im thinking there is hopefully room to push them down further once they have made me an offer ? Its all just a very scary game when it comes down to it ! I just wish it was an easy world where everyone could lay their card on the table with their maximum and minimums from day one but that would never happen ! Will keep you posted and fingers crossed all around !

micflair_2

DMB1973 wrote: »

Hey Guys and Gals, first thanks for all your input. It is a strange time, I hate grey areas lol, really just waiting now for the 3 elements: Offer, Purchase Price and Upper limit on Mortgage to all come back ! It is pretty much a given that what ever BOVIS offer will be a refusal initially on my part, as that very much seems part of there game plan and as we all know they know full well what they will go to on their offer and what they will drop to on the purchase price, its just holding your nerve to push them on both. As I say EA are confident that I should achieve around £145k so I am kind of Banking on an offer of about £135K, though I dont expect that to be the starting offer by any means ! As for the purchase price the issue in my own head is as they came down to £275K before real hard core negotiation has begun, Im thinking there is hopefully room to push them down further once they have made me an offer ? Its all just a very scary game when it comes down to it ! I just wish it was an easy world where everyone could lay their card on the table with their maximum and minimums from day one but that would never happen ! Will keep you posted and fingers crossed all around !

When they told me they would take 140k for there new build I thought brilliant - I can get them down to 130k here.. but they would NOT budge on that price as they had already knocked off 11k, I tried and tried, left em to stew for a bit with an offer of 138k, they still said no so had to go with it at 140k. Dont get your hopes up too high mate if they have already knocked some off - but its still worth a go!

DMB1973

micflair wrote: »

When they told me they would take 140k for there new build I thought brilliant - I can get them down to 130k here.. but they would NOT budge on that price as they had already knocked off 11k, I tried and tried, left em to stew for a bit with an offer of 138k, they still said no so had to go with it at 140k. Dont get your hopes up too high mate if they have already knocked some off - but its still worth a go!

Thanks micflair, can I just ask the £140k, what stage did they offer that price at ? Was it originally up for more and after your initial chat they came down to £140k before valuations on the property you were selling, then wouldnt budge any further even after making you the offer on the house you were selling ?

jonomassey

Hi Micfair, we are in a similar position to you. Our house is on the Market at £80k and we have had 2 valuations done this week and are waiting for a response from Barratts on a part exchange. The house we want is listed at £162995 but we are hoping to get Barratts to give us a 5% deposit which would mean we would have 20%. Just out of interest, our house was valued by estate agents at £90k so we put in on the market at £85k. We only had 1 viewing so then dropped this to £80k 3 weeks ago and we had 2 interest parties but both decided to go for other properties as they were part exchanged and the builders agreed to pay for solicitors fees etc which we couldn't match. We owe £71k on the property so are hoping for around the £75k mark to help us cover solicitor fees etc. What was yours valued at by estate agents and how long was it on the market for?

micflair_2

DMB1973 wrote: »

Thanks micflair, can I just ask the £140k, what stage did they offer that price at ? Was it originally up for more and after your initial chat they came down to £140k before valuations on the property you were selling, then wouldnt budge any further even after making you the offer on the house you were selling ?

Well it was kinda wierd, when I went in at first I told them I wouldn't be able to find 151k and she just said they would have a look at doing us a deal.. so we went ahead with the PX, they came round and checked our house out, then they got back to us with an offer of 72.5k and at the same time said they would do theres at 140k, I didn't even have to ask and they had dropped it. So thats when I thought I could get more out of them, turned out I couldn't. Maybe it was because they wanted a quick sale with the half year results coming up for them. They would not budge on the price at all, its like they just needed to not waste anytime so they knocked it down right away.

micflair_2

jonomassey wrote: »

Hi Micfair, we are in a similar position to you. Our house is on the Market at £80k and we have had 2 valuations done this week and are waiting for a response from Barratts on a part exchange. The house we want is listed at £162995 but we are hoping to get Barratts to give us a 5% deposit which would mean we would have 20%. Just out of interest, our house was valued by estate agents at £90k so we put in on the market at £85k. We only had 1 viewing so then dropped this to £80k 3 weeks ago and we had 2 interest parties but both decided to go for other properties as they were part exchanged and the builders agreed to pay for solicitors fees etc which we couldn't match. We owe £71k on the property so are hoping for around the £75k mark to help us cover solicitor fees etc. What was yours valued at by estate agents and how long was it on the market for?

Hi mate, welcome to the thread.

Well mine was originally valued at 80k, I wasn't happy with that price as I paid 83k for it, and houses in the street with far less work done on them were up at 80k also. I put it up for 83k and sat there for a month with no viewings or interest (it was over xmas though). After xmas I reduced it to 80k and had a flood of viewings, but yet no serious interest. I was on a homemove scheme with Redrow at the time, so I had 2 EA's pushing for the sale. The agents from Redrow dealt with the EA's so I didn't have much input with them apart from booking viewings. Every week Redrows people would ring me up telling me how things were etc, they were basically trying to push a quick sale. They would ring me up every week for a market update. After 3 or 4 months of viewings they asked me to reduce it from 80k to 70k, at which I laughed at and said I would not be able to buy a house from them if I sold it for that, so they said 72k, again I laughed and left it at 80k, knowing that I would have to reduce it at some point though. After a month of being pestered I thought I'd goto Barratts and see what they would offer in PX, they came back with 75k which I thought was reasonable as I would prob have dropped mine to 78k and would have took 75k if someone offered that anyway.

So I put it up for sale in December, and its came off the market as such 2 weeks ago. You can more or less write off December as a selling month Im told, so it was on the market for 6 months. I think they will do something similar with you, offer you 72k hoping for you to say yes - then come back to you with an offer of 75k, maybe a bit more as you say it was valued at 90k to begin with. Good luck and keep us informed!