Persimmon px, valuation and negotiation questions

Char27

Currently they are at the very early stages of phase 1 of a 4 year building plan. We are looking at px for a new build in the 1st phase.

They sales manager told us they would be in contact mid next year to organise 2 valuations from local EA and get things moving should we accept their offer.

There are 2 houses we like 1 is currently 213k and the other we really like is 282k. Looking at house prices in the area the 282k is on par with 4 bed detached properties however those houses are victorian and much much bigger than the new builds. Our current house is worth at most we think 155k.

I'm wondering if there will be much wiggle room on the prices, our top budget we want to go to at this point is 250k Should we wait until end of their financial year next year before moving forward with looking at px? We were told when we went to look at the site that there was roughly a 10k margin for movement which still leaves us wanting a very expensive detached house that we would want to resell in 18months

Does anyone have any sound advice regarding negotiating a better price on either house?

TIA

ViolaLass

Is there much point moving if you're going to resell in 18 months?

jbainbridge

You say they're building for the next 4 years. If sell during that period you haven't a hope of getting your money back.

Char27

I hadn't thought of that Jbainbridge, It's not essential we move within 18 months. We could stay for 6 years until husband retires then move to a more rural area which is our main goal.

gibby9

I think every site is different, however we looked into part exchange last year with Persimmon and they made it clear that there was no negotiation to be had on the purchase price due to the part exchange. They wouldn't even add a any extras like carpets or turf etc.

We had to turn it down due to a low part exchange offer and high purchase price. Luckily we sold our flat shortly after for a higher price.

ethank

If you part exchange with the builder, you are in less of a position to negotiate then if you sold yourself. If you sell your place yourself, you are paying your costs, if you part-exchange you are transferring it to the developer.

If property is not available until mid next year, why don't you try to market yourself?

Toadeh

Just finished px with the same group. Decent offer for ours (10k less than marketed), didn't bother to get the price down as it was about right anyway. Got turf, carpets and fence thrown in.

However, ours was end of year so they were keen to get us in and get it sold, so that might have a bearing on it.

ethank

Toadeh - was your house built already or did you buy off-plan? Builders typically will carpet and turf 'stock' houses that they have not sold, as the lack of carpet and turf puts potential buyers off.

Toadeh

It was nearly finished. We got it just before plastering stage so wasn't off plan.

Kimmy1980

We have just part exchanged with persimmon. Ours is due to be completed end Feb. We were very happy with the price they gave for ours 117000 they currently have ours on the market for 119950! We also managed to get free flooring and turf and 3000 off the new build price (we did ask for 5000). All In all they have been very fair. I'd definitely have a go negotiating we didn't think they would.

Char27

Thanks all, as it's off plan and still in the 1st phase should we wait until end of financial year - does anyone know the date incidentally? We're not in a mad rush, it has to be right and we definitely don't want to push our budget so far that we are worse off than we are now.

Is buying off plan in the 1st phase a good idea? I'm hoping we have more negotiating power because they need to sell those houses to build the next lot plus it's 4 years of living on a building site?

Or should we wait until phase 2?