Making an offer: New Build, end of developer's financial year

Cerealflakes

We're first time buyers and have been galvanised into action by the new development that's popping up in our village.

My question is this - we know the developer needs to get their first 10 or so houses off the books by the end of June - the house we like (but couldn't afford at full asking) is priced at 405k - what should we offer?

We will be living on a building site for at least 3 years (but this first phase is separated from the main site) and there will be none of the extra amenities available straight away.

Given the threads on here that I've already read, I'm thinking of going crazy and saying 305k including the offer of 5% towards the deposit and we come to the party, any more and we're off. What do you good people think?

Many thanks for your wisdom.

taxsaver

Does no harm to try, although I think they'll simply laugh at you. They will be more concerned about setting a low bench-mark for valuations than their year end in my view.

G_M

Give it a go. I hope you'll post back the response..... word for word. Please?

Cerealflakes

Yes, I was thinking that they won't want to set such a low benchmark. I suppose it depends on how desperate they are! We'll keep you posted.

nomoneytoday

Depends on their profit margins and need to sell.
A book entry downgrading the unsold houses by £100k each? Doubt it IMHO

geoffky

start at 300k..depends how much you want it and if you are prepared to play hard ball.

Cerealflakes

We can take or leave it! It's the first place we've really seen, but it does set a benchmark. We can move quickly and they know it because we're renting. We're limited (of course) by what we can afford anyway and there's no way we're going to over-extend ourselves.

geoffky - when you say hard ball - what exactly do you mean given that we're starting at such a low point already and that they're likely to laugh us out of the showroom? I'm not being funny - we literally know nothing about this process - we are both property virgins!

geoffky

i mean do not let them play games with your head and be cold and calculated about it because if you let feelings come into negotiations then you will pay more..At the end of the day it is a business transaction ,

Richard_Webster

The benchmark and the proper negotiating position is the price of existing similar 5-20 year old houses in the area. Don't pay more than those and possibly discount a bit more for the hassle of living on a building site.

Unfortunately while there are enough people out there who really want new builds, builders will get away with some of their prices. If folk voted with their feet and they had trouble getting interest they would be more prepared to negotiate.

geoffky

Richard_Webster wrote: »

The benchmark and the proper negotiating position is the price of existing similar 5-20 year old houses in the area. Don't pay more than those and possibly discount a bit more for the hassle of living on a building site.

Unfortunately while there are enough people out there who really want new builds, builders will get away with some of their prices. If folk voted with their feet and they had trouble getting interest they would be more prepared to negotiate.

Never a truer word spoken....fools rush in...

Cerealflakes

Just wanted to update you all - and anyone else looking at the Linden Homes site in Cholsey. Was contacted by an EA yesterday who essentially encouraged me to put in a cheeky offer. Apparently the show home went for an "amazing" price and basically it was suggested that they are finding things tough coming up to end of year with not many properties moving. Surprise, surprise.

We have moved on in our search as it was not really the right house or location for us. We're currently looking at a property where the vendor is divorcing and needs the cash. On the market for 315 k asking. We've got an AIP in place and are renting first-timers. So, what do you reckon is a good offer given that we can move swiftly. The property is in reasonable nick, sold for 210k in 2004 and nothing of any consequence has been done to it since then.

Any assistance you can provide would be brilliant.
Thanks