Making an offer on a new build

TClite

What's the general consensus on making an offer below the builders valuation? I'm currently being made to feel like I'm getting all I can possibly get and no discount or incentives are available.

The property is a 3 bed detached, priced at £258,000. Build completes end of Nov. So fairly soon obviously.

Theyre giving me full home report value for my property (part x) and £500 voucher towards getting some furniture etc.

This same build was sold for £240,000* at the beginning of the development (I understand prices will go up as the development progresses).

EDIT: sold price was actually £232,000 in Dec 2015.

Crashy_Time

TClite wrote: »

What's the general consensus on making an offer below the builders valuation? I'm currently being made to feel like I'm getting all I can possibly get and no discount or incentives are available.

The property is a 3 bed detached, priced at £258,000. Build completes end of Nov. So fairly soon obviously.

Theyre giving me full home report value for my property (part x) and £500 voucher towards getting some furniture etc.

This same build was sold for £240,000* at the beginning of the development (I understand prices will go up as the development progresses).

EDIT: sold price was actually £232,000 in Dec 2015.

Interesting.

glasgowdan

Do you want the house? If yes, offer £258k. If no, try and offer less.

indianabones

Don't listen to the guy above.


Start off at 230 and be prepared to go up to 250 but no more. The Independent ran an article last week I think where they said house prices have fallen steadily since April.

Colt24

Agree with above ^^

BBSB

House prices are only higher further down the development because the builders don't want to encourage selling the latter ones before the first houses are sold.
If it's the same build as a cheaper house, I'd make an offer for the same price and stick to it, but factor in if yours is in a better/worse position, different parking/gardens etc - features that would make your house more or less valuable than another house of the same build.
Good luck.

Thrugelmir

You are getting a hassle free part x. Developer may well sell it for less than the p x value to shift it on. That's an incentive.

gycraig_2

Unless they are struggling to sell I'm not sure why they would sell for less than the advertised price ?

TClite

Thanks for the replies. my next question is, probably quite silly, how do I formally make an offer? Phone the development sales office and verbally state I'm prepared to pay X?

I do understand that if the properties are selling the builder doesn't necessarily need to incentivise buyers, fortunately we are in a position to just walk if we aren't getting a senseible offer

Crashy_Time

glasgowdan wrote: »

Do you want the house? If yes, offer £258k. If no, try and offer less.

At this stage of the game it is all about how much negative equity you want.

ReadingTim

Crashy_Time wrote: »

At this stage of the game it is all about how much negative equity you want.

Negative equity's a red herring as it only matters when you come to sell, or if you need to remortgage - and that's only if your affordability is stretched when you revert to the lender's SVR. Given neither of these things are likely to happen in the next couple of years, "negative equity" is irrelevant scaremongering.