New Build - making an offer

Bwooks

There is a new development around the corner from me which has around 300 homes on it. It is nearing completion (probably about 30 homes to go).

My husband and I have sold our house (subject to accepting an offer put forward late last week) and made an offer on the new build (4 bed 3 storey with decent size garden). I am wondering what tactically we do next as so far:-

We saw the property yesterday, which is built but needs interior fixings, carpets and some windows, kitchen put in etc. and spoke to the lady in the sales office. It is on for £220k but she said they would probably accept £200k. We put an offer of £182,500 in to get the ball rolling, this was turned down flat and we put a further offer in of £187,500 which was turned down. I am not sure where we go from here...

In our favour, our selling agent it also their selling agent. We have a first time buyer lined up with a large deposit and we know they are good for the money as they have seen our selling agent. Do we go £195,000 next and say its our final offer? The developer has met its financial target for this financial year if that makes any difference.

There is another couple who has expressed an interest but their house is not sold yet and until it is I don't think the developer will accept an offer from them.

Any advice as to the next step? I will not go above £200,000 as I don't think its worth it resale wise but I do want the house.

Thanks, Leigh

blueblazer

Depends on how much you really want it or whether you are willing to walk away. Perhaps play a few mind games and ask your agent for other houses to look at and don't go straight back in? You are in a good position and even if they do get other offers, they will come back to you to try and turn it into a bidding war to squeeze more out.

CvPiper

We have been bidding on a new build the past few weeks. Got them to £215 from £247 the other day, and it's been on Market for 6 months.

We went down today, and came up from our last offer at £205 to £210, our house is sold and we have a 35% OTC, so in great position to go forward.

After the advisor put it to the sales manager, they called us an hour later, with the bad news that someone else with no chain has put in an asking price offer, which obviously they have to go with?

So, it's worth bidding, depending on how much you want it you can be in a position to save a lot from list price. However you may miss out on the house you want, and have to keep searching like us.

I doubt the reality of this sudden offer since the house has been on the Market so long - for both offers to go in the same Sunday morning is unlikely - but I will endeavour to find out somehow this week. They were keen to do £210 on a less desirable house, so I wonder if they are trying to push us into that house knowing that we are looking to progress as quickly as we can.

I think in the end it's a battle of who is best a the game - I have been in sales for years so have a very good idea what they are doing, and will be interested t see if this house is sold or they are trying to get something out of me!

Bwooks

They really have the upper hand don't they which is why it is so frustrating.

I think in our case, these developers know that we nearly bought a smaller house about 3 years ago from them (our buyers had to pull out as they failed to get their government funding) and so they are saying we can have that same style house for the offer we have put forward for the larger one. £187,500 for a house we previously had accepted at £166,000 I don't think so!!

I really do wish you luck with your house search, it is so frustrating so I know how you feel.

CvPiper

It is incredible that they even think that offer would interest you, to the point it is almost insulting.

We will continue - they will be the ones calling me soon as I cannot see them selling the ones on the phase they are finishing very quickly.

My area also appears to have houses listed at 10% above what they had been selling at the peak, how they think they will achieve these is beyond me.

Good luck!