New build offer - My next move?

MrParsons

Hi All,

Some may have seen my posts previously however I now want some advice after a reasonable offer was rejected.

I'm looking at a Redrow home (the one called a Cambridge) based at Thorpe Meadows in Leicestershire.

I've been looking at an off plan plot which is slightly bigger than the others but it really is slight. there's 2 Cambridge houses already built with north facing gardens which we have ruled out. They are listed at £280,000.

I have offered £250,00 and expect turf and flooring throughout. This has been refused after some deliberation between the sales person and the manager.

I have a buyer for my house who is willing to wait, I have a mortgage agreed in principal and have a £10,000 cash deposit i can put down at exchange. I said I was looking to sign this weekend if a deal can be done.

Other houses of around the same size are on the market for anywhere between £220,000 to £250,000. If I was to have a budget of £280,000 I could get a bigger house with a double garage... i can't of course afford 280k!

As a final offer I said £265,000 with them paying stamp duty but giving turf and flooring throughout. Based on the previous conversation the sales advisor had with her manager she said that it would not be accepted. The plot I have been looking at has not yet been released.

So my question is: Should I forget about this house and move on or will they come back with a counter offer? I'd like the house but I'm not going to pay over the odds for it, especially with the area being a building site for the next couple of years.

Any help appreciated!

sinbad182

You say you cant afford 280,000.

If they dont come back with a counter offer, its safe to say thay wont accept much less than that figure.

You have no option but to walk away by the sounds of it!

giddypenguin

If you are expecting them to pay stamp duty, you have only effectively upped your offer by £7k (ish)...

Sounds like you can't afford this house I'm afraid.

MrParsons

Well, I could afford the house if I really wanted it. It's just not worth the £280k asking price. this is a new build though and from everything I have read, they are always overpriced.

What I'm asking is are they just playing a game in the hope I come and up my offer? Or is this the end of the road for a deal? &k is still a lot of money.. especially profit!

DaftyDuck

MrParsons wrote: »

Hi All,
....................
Other houses of around the same size are on the market for anywhere between £220,000 to £250,000.
................

So, what are the criteria that make this house worth any more money to you? How much would it cost to correct such features, if correction is possible? For example, are any of them lacking a bedroom, but are at £220,000, where a £25,000 extension would give you not only the bedroom, but a second bathroom and new sitting room...

martinsurrey

MrParsons wrote: »

Well, I could afford the house if I really wanted it. It's just not worth the £280k asking price. this is a new build though and from everything I have read, they are always overpriced.

What I'm asking is are they just playing a game in the hope I come and up my offer? Or is this the end of the road for a deal? &k is still a lot of money.. especially profit!

Over priced is often banded around, but its not really the correct term, premium priced would be better (IMO).

They are like new cars, which many people will say are overpriced, but 1,000,000 are sold a year.

As the house isn’t built yet, not even realised for sale, they wont be in a hurry to sell it cheaply, especially as it’s the best of the type.

I would think they are looking for £270k cash with none cash incentives thrown in (so turf, appliances, flooring ect), or £275k with cash incentives (stamp duty paid).

Sorry, but I don’t think it’s going to happen

MrParsons

DaftyDuck wrote: »

So, what are the criteria that make this house worth any more money to you?

Simply the layout. Its a very well designed layout which gives us the space we need in the places we need it. It has a kitchen / diner / family are combined which make it a very social house. Thats the criteria for what I've been looking. Older designs seem more compartmentalised boxing each room off separately.

As the house isn’t built yet, not even realised for sale, they wont be in a hurry to sell it cheaply, especially as it’s the best of the type.

I would think they are looking for £270k cash with none cash incentives thrown in (so turf, appliances, flooring ect), or £275k with cash incentives (stamp duty paid).

Sorry, but I don’t think it’s going to happen

So even if I went in at £270 and said you pay stamp duty and give carpets and turf, you still think they would refuse?

martinsurrey

MrParsons wrote: »

Simply the layout. Its a very well designed layout which gives us the space we need in the places we need it. It has a kitchen / diner / family are combined which make it a very social house. Thats the criteria for what I've been looking. Older designs seem more compartmentalised boxing each room off separately.



So even if I went in at £270 and said you pay stamp duty and give carpets and turf, you still think they would refuse?
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thats a £262k offer with about 3-4k of extras, so £258k cash

but only one way to find out...

bclark

Have they given you any indication at all of what they are looking for?

You should look for that as your next move before going back to them.

MrParsons

All i know is that they have said a little over £280k because the plot is south facing. but they did say they would be looking at £280k and they pay stamp duty, turf and flooring which is the standard as I understand it.

They have always maintained that they have 10k to play with however I'm pretty sure that is not true.

watkins101

I may be incorrect here but if they sold it to you cheaply (ie below book price) then as the house price would have to be registered that would show everyone how cheap they could get the house too. The idea of chucking in all the other bits is just a way of keeping the headline sales value inflated.

If its still quite a new development then once the reduced sales price hits the public domain it effectively devalues every house of your style on the estate.