How much to offer on a new build that never sold

jamesmorgan

It is very difficult to second guess the outcome of a negotiation without fully understanding each parties position. There may be lots of reasons why a builder may entertain a large drop in price - the most obvious one being when they approach the end of the tax year. The only way you can find out is to enter into a discussion with them. Ideally you need to try to find out the lowest they will get to. If you can complete quickly, one approach is something along the lines of 'I can complete in 3 months. What would be the lowest price you are able to offer me?' Ultimately you will only find out by asking them.

I bought a new house a while back in similar circumstance. Eventually they offered me the house for 30% less than earlier buyers paid. I would have been happy to walk away and they knew it, but I managed to complete the sale the day before the end of their tax year so it all increased their bottom line.

If the housing market is stalling and prices starting to fall they may entertain a low offer, but don't expect an easy negotiation - they are professionals.

Pixie5740

If this is the house you mentioned in your other thread then it's hardly surprising the sold prices of the neighbouring properties aren't showing on the Land Registry. The Land Registry only covers England & Wales and you're looking for information about properties in Scotland.

What guidance on prices has your solicitor given you?

Pennyb90

We are still able to get the sold prices in Scotland, it isn't that they have none available, simply that there aren't any 'recent' ones.

Pixie5740

No you can't. If you want to view sold prices in Scotland you need to check the Registers of Scotland.

hazyjo

If it's been on the market that long, waiting until January is not going to matter a jot.

I think you'd be better off submitting a low offer now, and THEN going back to them in January if it's still not sold. I think you'll have far more luck going in now, then going back in a few months' time with a lower offer.

Nobody here will be able to tell you what they'll accept (not today, not in January).

If it were me - depending on what other properties are selling for - I'd be offering around £243k and wanting to settle on £250k. I'd be reluctant to pay over that. You may be happy with £260k, and the developer may not want to accept below say £265k. Who knows! Won't know until you try.

I'd also be reluctant to leave an offer on the table - if they decline, or you can't agree on a price, withdraw the offer and say you'll consider offering again or following it up early next year. (You might wish to offer less, plus it's far more appealing to other people when they know there's an offer on the table. Human nature.)

Good luck.

Marvel1

Don't know I have to see the house first if worth an offer and how many i think it's worth.

Pennyb90

Land registry/ registry of Scotland, personally makes no difference to me, I just want to know the previous sale price, but what ever makes you sleep at night babe.

I never actually thought about going in with a low offer now and then back again later, think that is what I will do! Thanks!

lessonlearned

When is their financial year end......hint if it's December then now is a good time to make an offer.

In broadly general terms it's the Last couple of houses on a development that give the builders their final profit.

They might well be ready to let it go and release the capital they have tied in it. It Depends on how busy they are and if they need some working capital for their next development. If the market is very quiet then they might just be mothballing future projects and therefore they might just sit on the house for now until the market picks up.

As you can see there are a lot of variables so you can't really second guess them. Make an offer now and see what happens. You can always go back again next year if it's still on the market.

Cheeky_Monkey

Pennyb90 wrote: »

Land registry/ registry of Scotland, personally makes no difference to me, I just want to know the previous sale price, but what ever makes you sleep at night babe.

I never actually thought about going in with a low offer now and then back again later, think that is what I will do! Thanks!

Seriously!!!

If, as you say in your other thread, the absolute top of your budget is £220k, I doubt very much that they will accept being as its £50k below asking price which is already a £15k reduction on the original price.

Pennyb90

That's fair enough, I am clearly not expecting anything as I have said, I have no idea how low they will/could go. I was simply asking. I'll try my luck, and if it comes to nothing then it comes to nothing, worst case scenario we will just have to remain renting until we have more money to put into a house!