New build offer - My next move?

Ciderarmy1987

martinsurrey wrote: »

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.

I totally agree with this, whilst I personally wouldn't buy a new build but the reason that they are "over-priced" is that everything in the house is new with a reasonable length guarantee. When compare the price of other 2nd hand house you did really need to try and find a house that has been recently renovated to get a better indication of the true value. However this is easier said than done. Alternatively take a average second hand house and price up getting the fittings up to the new spec, ie new kitchen, bathroom, double glazing etc. I don't think that it is unreasonable to expect to overpay for something that is brand new.

The problem here though is that you have to be careful not to fall into a negative equity trap as all of the debt is tied to the house

MrParsons

Thanks for the advice all.

I agree about the notion that a lower price would devalue the estate so my mortgage advisor said to go at it with a different approach. He suggested asking for a 5% gifted deposit and they pay the stamp duty. So that would be £14k off the asking price in reality with the stamp duty paid. I've put this to them and am awaiting a response. I have told them that's my final offer though so we'll see what happens.

OddballJamie

That seems a more sensible offer on a house that hasn't been released yet, so they aren't yet able to judge the popularity of it and adjust the price accordingly.

When I was looking for a new build house in 2011, we liked one plot that hadn't been released yet but wouldn't entertain any offer lower than the asking price of a similar house on the same plot. There was even talk they wanted an extra £1k on top of the last one released as they had been so popular.
Good luck with the offer, hope it gets accepted.

Btw regarding the £280k used houses with the double garages that you mentioned, if this new build offer gets rejected, you could make a cheeky offer of £250k on those as you never know what situation the private sellers are in.

MrParsons

I did think about doing that. I called one estate agent about a house on at £275 and said we'd be willing to offer £250 but they had already rejected an offer higher than £250... there are a couple more so perhaps we should investigate

As far as the Redrow house goes, according to the sales person we were talking to there had been lots of interest in that plot but then everything we said we were interested in had also had lots of interest... i find that hard to beleive, especially when he promises to call and doesn't. Pretty unprofessional if you ask me.

If that offer is accepted I'll then push for carpet and turf. It's not a completed house without it so the missus would just flat refuse to buy.

LittleMax

So you listened to the advice about the north facing gardens

However, this does mean that you are trying to offer a low price on a plot that's not yet finished, when they have 2 finished houses that have been sitting there a while unsold. This was you original justification for going in with a low offer. Why would they discount the unfinished house, when 2 other less desirable plots are sitting there unsold? You may get a deal on those, but someone else may come along and be prepared to pay the premium for the south facing garden and slightly bigger plot, so no rush for them to discount it.

You could always get one of the other houses you have seen and have the work done to make the open plan space you want. Many older have kitchens next to dining rooms and lend themselves to having these rooms knocked into one.

OddballJamie

I can sort of understand with the flooring as everyone has their own tastes, hope you get it chucked in though as it can be a few thousand on top if they fit it before you move in.
Turf on the other hand is a joke, a Taylor Wimpey house I looked at didn't have any turf included or a fence! They had a length of wire as a divider, their excuse was not everyone likes having a fence in their back gardens so they don't fit one as standard. Not everyone has a car but they still pave the driveway .

MrParsons

Agreed! With the flooring, it costs them literally a few hundred quid. If i paid for the turf which they lay down, I would be doing my nut at them as the quality of it is terrible! Its workable for free until I can do a better job though.

Littlemax: The reason they may accept an offer on an unreleased plot is because it secures revenue for the development meaning it can carry on building. It also means that any costs which are associated with having the house standing empty are mitigated. But yes, having saw the garden at 4:45PM with no sun at the weekend I figured it would really bug me. Aparently the other half already said about it but I "wasn't listening as usual"

MrParsons

UPDATE:

Had Redrow call back about my offer of 5% gifted deposit and pay stamp duty but it was still a flat "No". told them its my final offer and that I'll leave it on the table and to call me if they want to re-address.

Apparently Redrow don't offer big discounts off of list price however a quick search on here shows that to be untrue. Oh well... onwards and upwards.

martinsurrey

MrParsons wrote: »

UPDATE:

Apparently Redrow don't offer big discounts off of list price however a quick search on here shows that to be untrue. Oh well... onwards and upwards.

as said a few times, the plot your offering on isnt released yet, and is the best plot of its type.

They are not going to knock over £22k (5% deposit=14K stamp duty = £8.4k = £22.4k) off the price before its built.

if they build it and it sits empty for 6 months, then they might be willing to talk.

MrParsons wrote: »

Littlemax: The reason they may accept an offer on an unreleased plot is because it secures revenue for the development meaning it can carry on building.

not true.

builders work on cashflow, and they wont get the cash for that plot untill its built, so its useless for them to sell it 12 months in advance, they would rather sell you the worse plot for cheaper, sooner.

LittleMax

I see your next move is to Taylor Wimpey, but interestingly a higher offer

https://forums.moneysavingexpert.com/discussion/4550351