Buying the show house - Acceptable deal???

cardiff101

Hi

I have just agreed to buy a show house in a new build area (the proposed buyer fell through so it is available and is the only one left for this phase). The offer is via part exchange where by they are offering £100k for our property even though it was valued at £113k.

However as it is the show house the home has apparently received around £30k in upgrades (it does look very nice but it is hard to truly quantify these costs), so this does offset that reduced offer.

I was just wondering if anyone has any experience in this area and whether they think this is an acceptable deal (i am aware it is not a blockbuster deal but reasonable would be ok).

The one issue is that this housing development (at this moment in time at least) is very popular and so basically I do not think they are concerned about selling this property (as mentioned this property is basically the last they have of this phase and they have a lot of early bird options and agreements in place for the phase two house they are building ready for end of year) and so we pushed quite hard for a higher part exchange offer or reduced house price but they were quite prepared to let us walk by the looks of it.

Thanks in advnce

AnotherJoe

The 30k in "value" spent on the show house is unlikely to add more than £3k to actual value, if you are lucky, whereas the £13k lost in PeX of your house is likely actual money you've lost.

So I'd say you are coming in around £40k down if you are paying £30k more for the new house.
If you are paying whatever comparable houses are selling for (eg not £30k more) then you are £10k down.

Cakeguts

The 30K in upgrades only applies to when it is new and the upgrades are new. Once you buy the house the 30K upgrades become 2nd hand upgrades so only worth the same as anything that other owners have done when you come to sell. Only the builder can get extra for this house. You won't get any extra for it when you come to sell.

frugalsmurf

I think it comes down to whether you want the house. Often you get less for part ex as its the convenience of part ex which you're paying for.

As for extras, when it comes to sell they may add "likeability" factor but I doubt they'd add much , if any, value.

If you want to move, like the house, prepared to take the loss on the part ex, then go for it.

If you're going to buy there anyway, it sounds like a good deal as you're getting the extras.

getmore4less

We have a show house as a second purchaser.

The same houses were being build on the next phase but the ex show house plot was much better south facing and not overlooked front or back, came at a £6k premium on £140k and 18month older.

upgrades were mainly cosmetic, boxed in pipes more coveing, upgraded door handles, door stops. Same carpets kitchen and bathrooms as the other builds.

The previous owner had had done work on the garden but when they bought they got the benefit of the developers bit of landscaping over the standard offer of grass if you paid extra/did a deal.

The garage had been the show room so that had wall light wiring boxed in boiler and soil pipe along with insulated ceiling and boarded/papered walls

The build bodges were uncovered over the next 15 years as they had rushed to finish the place.
Most inconvenient was wallpaper straight on the wall boards, a pain to get off and make good.
.
Due to the garage being used for showroom the wiring is non standard.

Excessive builders debris around the house under the top soil, but this seems quite common on developments.

Make a list of the "improvements" over the regular places unless there is something significant the real value is likely to be much less approaching zero on resale.

Having a "finished" house will be convenient and the part ex removes some hassle but what's that worth to you over one of the new builds or a sale of another on the finished bit of the estate

cardiff101

Thanks.

In regard to cost we haven't paid £30k extra for the upgrades as the purchase price is the Base shell cost if you were to purchase a typical plot.

Where we are losing out is the lower part ex value and the no discount to the advertised cost of the house.

It's just getting a value on the upgrades which I find tricky. It was suggested to me for example if I sold my house and got full value in my pocket that extra £11k say (minus estate agent fees) would not actually stretch that far when finishing the new property (as we would then be buying a shell not the show house). Even if we used external contractors to put carpet/flooring in etc. I think it did surprise me what you don't get as standard in these properties to be honest so could see how it adds up a fair bit.

Debtslayer

It will come down to how much you want the show home. If you don't really/ would be willing to buy another property then have z look around at what else is available.
We have friends who are currently buying a new build anx the prices they have been quoted for 'upgrades' from the builder is ridiculous and they shopped around for flooring etc and got them much cheaper.
Also you say your current property has been valued at 113k, but would you actually get asking price? Don't forget you'd also have selling fees, do you would need to think about what it would actually cost to sell and what you would actually get for the property

cardiff101

Yes the ability to have it sorted quickly is a big factor. Accepting this option would probably mean moving in within the month. whereas is we try and sell ourselves we would then have to wait until the phase 2 properties (November), and even that is no guarantee as they will not deal with you unless you have a sale of contract attached to your property. Again I just think they are in a strong bargaining position at the moment with help to buy fueling a lot of potential buyers by the sounds of it.

DRP

getmore4less wrote: »

Most inconvenient was wallpaper straight on the wall boards, a pain to get off and make good.
.

*off topic*
Funnily enough I heard someone else mention about this in passing yesterday, except their experience was of new-builds with plaster boards being painted directly (just the joints taped and skimmed). This meant any damage or filler couldn't really be sanded back as it would damage the paper lining on the boards... crazy.

dimbo61

Buying a house is an expensive and stressful event at the best of times.
Getting involved in a Chain can only add to the worries.
Does the show home have a nice big south facing garden ? Landscaping, fitted carpets, wooden flooring, curtains and blinds ?
Does it have a double garage which is already an office ! or playroom/study?
Move in for the summer or Maybe Xmas
only you can decide if it is a deal you can afford and want

getmore4less

cardiff101 wrote: »

Yes the ability to have it sorted quickly is a big factor. Accepting this option would probably mean moving in within the month. whereas is we try and sell ourselves we would then have to wait until the phase 2 properties (November), and even that is no guarantee as they will not deal with you unless you have a sale of contract attached to your property. Again I just think they are in a strong bargaining position at the moment with help to buy fueling a lot of potential buyers by the sounds of it.

IF the decorating standard is good and to your taste(for at least a few years) that's one thing you won't have with a shell, decorating with a house full of stuff.

also little things like curtain rails installed and ready to go can save quite a bit of time/hassle.

Surprisingly things like coveing not only give a better look/finish they are much easier to get a good result when painting.

Check what the other really went for as a quide to where the cuurent shell asking price lies.