Offers on a newbuild?

nixilix

Hi

I am looking at a newbuild property marketed at 159,995. What kind of offer should we be making. Cannot ask for incentives such as stamp duty paid or legal fees as we are looking to purchase on the newbuy scheme. I understand they can offer carpets and white goods. What about asking price?

I was thinking £135,000 which is around 15% less than the advertised.

Thanks

kingstreet

Most property offered on a scheme such as newbuy is offered at a fixed price. Nothing to lose in making an offer, but expecting £25k off then the newbuy contribution is asking a lot.

nixilix

We are 100% expecting to get a no from that offer and are prepared to go to 145,000 but if even thats unlikely then I suppose we are wasting everyones time! I'm not paying more than £145,000!

Richard_Webster

Problem with using these schemes is they know you cannot buy a similar cheaper second hand property so they have you over a barrel.

You can only hope it is downvalued by your mortgage lender and builder has then to reduce price.

nixilix

Thanks both for your responses.

nixilix

They said they couldn't budge but called this afternoon with 155995. Still too high so will let this one pass

caeler

Maybe wait it out? They've just knocked off £5K! Another week and who knows! What developer is it? For example Persimmon have their year end in December so about now they get really desperate for sales.

nixilix

It's bellway. Year end is July. They said they can't go any lower as it affects the rest of the development and as they have to pay 3.5% because of newbuy scheme and by throwing in appliances and flooring they have already spent £17000 on the house before we buy!

TastyTeeth

nixilix wrote: »

It's bellway. Year end is July. They said they can't go any lower as it affects the rest of the development and as they have to pay 3.5% because of newbuy scheme and by throwing in appliances and flooring they have already spent £17000 on the house before we buy!

It's a similar story with most developers when buying through NewBuy.

Interesting that the developers won't give a damn about how it affects the rest of the development when a cash buyer walks through the door...

caeler

nixilix wrote: »

It's bellway. Year end is July. They said they can't go any lower as it affects the rest of the development and as they have to pay 3.5% because of newbuy scheme and by throwing in appliances and flooring they have already spent £17000 on the house before we buy!

Oh woe is them! They want you to believe that but really it just dents their profit! Shame but maybe this time you'll have to walk away.

I was given the whole spiel about costs of flooring when I bought mine, no way does some white goods and carpet cost £17K. At best they'll have spent £3K, maybe call their bluff and ask them to ditch white goods/carpets and come back with a better price.

nixilix

I think the £17k was calculated with the 3.5% they pay, plus £5k discount, plus intergrated white goods and carpets too.

Still an over exaggeration I'm sure tho!