Advice on offer/process with house still to sell

copperjar

Hello. Just looking for some advice. Bit of a long shot but I wonder if I have a chance to negotiate when not in best buying position!

Have recently decided to take the plunge and move from tiny 2 bed cottage to a 3 bed with my partner. Looking at new builds and have stumbled across one from a very well renowned local builder which isn't yet on the market. It's in a development of 16 properties, 12 sold in phase 1 last year. Have spoken to estate agent who seems quite positive about maybe getting the ball rolling before it is officially released to the market in 4-6 weeks.

My house is having some decoration and slight repairs over the next 10 days before going on market. Good valuation and been told it will sell fast (do they all say that?!) with people on waiting lists for my type of property. Just doing the repairs so I can get top possible price for it on EA advice.

So the property we are interested in has an asking price of £240k.. Phase 1 builds were going for £225k last year, selling for up to 5% under that. This one doesn't have a garage like the others, but better views and a double drive. The extra £15k seems excessive to me.

We only would want to offer £225k max. Might be rejected straight away but just thinking of tactics. Would they be likely to do a deal if I offer before it's officially on market? Do I wait until my house is sold before making an offer? But then risk being against others who might not be aware of it just yet! Added issue is I go on holiday in 3.5 weeks. Will rush to get my house on market but only if in with a chance on this house. Otherwise will wait until after hols as there isn't any other property that has taken our fancy at all.

Basically, is there much chance trying to negotiate without mine being sold? Would new build developers give a short time between reservation fee and the next step? Or do I just wait and chance that it will still be available after being marketed widely? I kind of think my best chance is to get in quickly but obviously conscious that there's not much inventive for the seller unless I'm in a position to progress straight away.

AnotherJoe

What's happening to house prices in your area? Where I live a house that was 225 last year would be 280-300 this year so expecting it to be the same as last year would be wildly optimistic from that POV

Are prices static in your area?

Next bit of extreme optimism, you haven't sold your house and you are expecting the developer to take an offer even before it goes up for sale ? What's his motivation ?

I suppose you have nothing to lose by making your maximum offer but it seems to me unlikely you will be in a position to sell yours in time, or buy this particular house.

HouseBuyer77

It'd be an offer 6% below asking from a (currently) non-proceedable buyer. I doubt they'll be keen.

Perhaps the price is a bit high, after all they are a developer trying to maximise their profit, can't say without knowing the area. But they're not new to this game I'm sure they've decided that will attract a decent level of interest and will certainly wait to at least see what other offers, if any, come in. The EA said your house will sell quickly, I presume the same stands for the new build so I'm sure the developer will be confident of some other offers.

If you want it now you need to offer the developer something special, so an asking price offer at least would be required.

copperjar

Thanks both. I thought as much - I guess it was extreme optimism on my part!

I think I'm worried about mine selling quickly without me having found anything. But that's not unusual I guess!

dc197

The new build is not on the market, suggesting it's now where close to being finished. Is that a correct assumption? What is the timescale for that? Just make sure to let your buyers know. You'd hate to bring your cottage to market quickly, accept an freedom someone in a hurry, and not be able to give them a estimate of your move time scale. They might pressure and nag you. Whilst you must put your own needs first, it is still nice to think of others in your chain.

warby68

Get it on the market

Even if you do find a buyer you don't HAVE to proceed to completion if you can't find anywhere but do tell the truth about your timings so you are not seen as a timewaster. Sometimes, especially FTB, are not in a particular rush to complete - see it as extra saving time.

You've got to start the balling rolling somehow.

Builders much less likely in general to take offers than the 2nd hand market - often the price is the price but you might get stamp duty, something towards fees, extras etc so that might be a better angle. Pay the price but see what extras you can get secure. Especially if you're not a FTB - builders like chain free just like everyone else.

copperjar

New house not on market but expecting to be in 4-6 weeks. I guess I will wait until then and get mine on quickly. Maybe I wait until I get an offer and then make my best offer on the new house? If they don't accept it I can then be honest with my buyer that we've not found anywhere yet so they are fully aware before I formally accept.

It's all a bit stressful this chain business!

AnotherJoe

copperjar wrote: »

New house not on market but expecting to be in 4-6 weeks. I guess I will wait until then and get mine on quickly.

I'd say wrong order, you should get yours on now. Otherwise you are behind any other buyers who already have an offer on their place.

You said you were on holiday in 3 weeks time, so if you are open to leaving a key with the EA you could get back, see what offers you have and with a bit of luck the new house will also be on the market. If you choose the same EA as is selling the new houses, that gives them a solid incentive to help you buy, let them know you will be making an offer dependent upon the offer on your place.

copperjar

Thanks Joe. That sounds like a pretty sensible approach. Will ring the EA and get them to value this one as well

Hoploz

If it's not yet on the market how do you know that is the price it will go on at? They could be making it up to see what interest is like prior to marketing.

copperjar

I asked the EA who asked the builders who said that price. But yes, maybe they are testing a new price before officially putting it on market. I hadn't thought of that! The last one that was advertised in Dec last year was on for £225, I can't seem to find the sold price (it still says SSTC but EA said it has gone through) but it had a garage. The one I like doesn't.

When I first enquired, the EA "guessed" it would be on a bit cheaper than the others because of being the only property without a garage.