Buying a "second hand home" from a builder.

Playboy7

I am looking for some help or advice with the situation I find myself in.

I own a flat, however myself and my partner have been looking to buy a house together. (I do not have to sell my flat before buying a house)

We have seen one we are keen on. The house is owned by Bellway, as the previous owner part exchanged it for a new build.

It has only recently been put on the market, and is on for fixed price £215k, with a home report value of £225k. However, the property is around 100 years old and has some issues which has been highlighted in the home report as requiring repair, which could potentially be expensive to fix. (Roof, electrics, damp, amongst other things)

Given the current climate, I was looking for advice/opinions on what would be an acceptable starting point for an offer, given the circumstances.

Ultimately, we are in a position to buy quickly if the price is right, and I would imagine Bellway won't want to hang onto it for any great length of time.

Any thoughts, tips or experiences of buying "second hand" homes from builders would be greatly appreciated.

BitterAndTwisted

Are these alleged repairs absolutely necessary and have you had a trusted builder round to price them up?

Roof: a couple of slipped tiles or something more profound?

Electrics: what precisely?

"Damp": there are a number of reasons why a property may be showing signs of damp. Some could cost £50 to fix and others tens of thousands.

Playboy7

The repairs are classed as 2 in the home report, which means that estimates are advised now to get said faults fixed in due course. I haven't had any specialists round as yet, but as a buyer thought it best to be more cautious.

I reckon the roof would need constantly maintained (old slate roof), and it states that timbers within the loft space are split and damp stained in places, which doesn't bode well. I have been told that an entire new roof would cost around £15k.

It states that there are aspects of the electrical installation which require attention and that an approved contractor should be consulted. I reckon a full re-wiring job may be needed.

As for damp, it states obtained several higher than normal readings on our moisture meter at various points in lower walls within the dwelling. I know that the whole house was treated for rising damp around 20 years ago.

Playboy7

My thoughts are that Bellway as a huge company, shouldn't be that difficult to deal with when it comes to a price.

In addition, I have been told that they bought the house for more than it is on the market for, although I cant see this being true.

Bargie

Hi, can't really advise on your specific situation but we bought our house from a builder - David Maclean homes - as it had been part exed. Our house is also over 100 years old. It was on market for less than they bought it for (checked the sold prices on zoopla) and we offered £15k below that which was accepted. Our survey then showed a couple of damp and roof issues (nothing major just typical things in an old house) so we got another 3k off the price we eventually paid. Think we were lucky as at the time the builders were really struggling with cash flow so just wanted rid. They probably made their profit on the new build to cover any losses anyway. Definitely worth a try with a lower offer

getmore4less

Builders overpay for the part exes so they can get their own property sold at an inflated price. not good for the builder to have the true prices on the land registry while a development is still being sold.

THey take the paper hit on the resale of the part ex which most people won't know about when pricing the new builds.

CLAPTON

is doesn't matter what the builder 'bought' the house for and there is no such thing as a 'fixed price'.


what are comparable houses selling for; offer that minus costs to fix up minus something as you can buy quickly

dimbo61

Please get a full survey done and electrics/Central heating checked.
My brother has a 100 year old house very grand, 4 stories,open fireplaces etc
Spent so much money on complete refurbishment and still not finished after 5 years

Playboy7

Bargie wrote: »

Hi, can't really advise on your specific situation but we bought our house from a builder - David Maclean homes - as it had been part exed. Our house is also over 100 years old. It was on market for less than they bought it for (checked the sold prices on zoopla) and we offered £15k below that which was accepted. Our survey then showed a couple of damp and roof issues (nothing major just typical things in an old house) so we got another 3k off the price we eventually paid. Think we were lucky as at the time the builders were really struggling with cash flow so just wanted rid. They probably made their profit on the new build to cover any losses anyway. Definitely worth a try with a lower offer

Thanks for that Bargie. Can I ask was you 15k below price offer or your first offer? If not, what was your starting offer and how often/much did you increase by?

Playboy7

I am aware that the builders have made their profit on the new build as mentioned. Would it be advisable to contact the builder directly as oppose to going through the EA, or would this be a waste of time?