Deposit on New Build before sale of our house. Crazy?

PasturesNew

bensebborn wrote: »

So, asking people with experience of buying new builds:

1) What is the risk in putting down a deposit before its built?

2) Are we crazy to commit/exchange before selling our own property?

3) Will we be in a stronger bargaining position doing this, or waiting until we've sold?

Any tips gratefully received!

No experience of buying new builds, but the pessimist in me would consider:

1] You might lose your job and/or have any mortgage offer removed
2] Not crazy, but it is a high risk strategy without a Plan B in place
3] Bargaining positions are individual to the house, location, your own circumstances, so it could be that you are/it could be that you're not.

bensebborn

Thanks all

In a fortunate position that I run my own business soI know that's stable and my job isn't at risk

Mortgage company are more than happy to lend based on it being a second property so that takes the stress of selling the first away if things don't line up exactly.

As the new house won't be ready until Sept also gives us plenty of time to sell. Probably too much as we may end up having to move out and rent but we'll see.

Now for the next stage... Negotiations with the house developer!

bensebborn

I'm back after a stressful week!

We've been in to discuss the property with the sales lady. She's said that they very rarely offer discounts on the house price (!) but instead throw in extras, and has offered to pay our stamp duty so we don't have to. I guess the stamp duty can be equated to a discount on the property...

The offer was on this property: [dwh dot co dot uk] /new-homes/northamptonshire/H585701-Radstone-Fields/plot-156/

I think stamp duty is around £14,000 so that's about 2.8% reduction, which seems really low when I'd usually aim for 5-10% if buying 'second hand'. However, our own estate agent did say that offers are much closer to asking price at the moment.

Should I push for more?

Thanks