Buying a show home - how much should I offer?

Mickygg

Slithery said:

Is it actually the same as the other 'similar' plots? They usually build the show homes slightly larger and with higher end fixtures and fittings.

Are there any more recent sold prices you can look at? The market value of properties has gone up (sometimes substantially) in the last 15 months.

Really? I've never come across that before. 

lookstraightahead

What will you be ripping out? Don't pay for things you will replace 

Mark_1986

JHW1942 said:

Is there a substantial difference in the plot which justifies the difference between the same type that sold for £540k and this one?  If not, surely your first offer should be closer to that figure?

£595k on a £600k asking price is a bit of an 'Alan Partridge' offer.  I suspect they'll bite your hand off.

I think the main difference is that the £540k house was sold over a year ago and prices have gone up quite a bit since.
Also, this plot is on the edge of the development and is around 200 square foot bigger, not to mention the 'show home' upgrades, landscaping, etc. 
Unfortunately, developers are reluctant when it comes to lowering prices of their new builds, however some of them are happy to throw in stamp duty contributions, vouchers, etc. I don't want to push them too much because they have already agreed to pay full stamp duty (£20k). 

Mark_1986

Slithery said:

Is it actually the same as the other 'similar' plots? They usually build the show homes slightly larger and with higher end fixtures and fittings.

Are there any more recent sold prices you can look at? The market value of properties has gone up (sometimes substantially) in the last 15 months.

The plot is bigger, yes and prices have definitely gone up. 
Prices of other houses sold on this development:
A) £475k (June 19), £500k (Sept 19), £475k (Nov 19), £490k (Dec 19), £470k (March 20), £500k (May 20), £494k (Oct 20) - current price of the house of this type is £527k.
B ) £600k (two houses sold at this price in Aug and Sept 2020) - current prices £655k, £660k and £675k. 
C) £630k (June 19), £630k (April 20) - current prices £660k and £685k (another show home).
So the other show home (yes with upgrades, landscaping etc., but will be 3 years old at the time of completion) costs £25k more, compared to the same house but brand new. I personally don't think this is right...

Mark_1986

Gentoo365 said:

Remember you are competing with other possible buyers, and (as far as I know) the developers will sell it to the first person to pay a reservation fee. Offering near asking will get you the house. Offering under it may mean someone else gets it.

Not a reason to overpay, but if it's a nice place I wouldn't mess about to save £5k or so on a £600k house.

Yes I agree, however I do think the house is worth more like £590k-£595k even though they agreed to pay stamp duty. 

Mark_1986

losgiganteskid said:

You need to be mindful that all the items that are contained within your "new build" i.e. washer dryers, fridge, cookers, hobs etc etc will be all out of warranty when you actually buy the property.  I had this problem when I bought my "new" house which had been fully loaded with white goods etc - beware

Yes I did think of this, also we won't get the full NHBC warranty. At the point of completion it will be a 3 year old house...

Mark_1986

dimbo61 said:

You need to look at everything inside and outside the property.
Does it have a bigger garden? Landscaping with mature plants and expensive stone patio area. Fully fenced ? Hedges ? 
Added extras such as quality carpets/ hard wood flooring ? Upgraded bathrooms and kitchen. Even nice quality curtains and blinds cost money and save you the cost and hassle of getting them fitted yourself.
Only you can judge of its worth £600K to you 

The only reason why I'm having doubts is because the house has a busy road on its doorstep... This will also affect the resale value. Otherwise I would be happy to pay the full price. 

Mark_1986

lookstraightahead said:

What will you be ripping out? Don't pay for things you will replace 

Thanks, the decor is actually not too bad so it's just a matter of painting couple of rooms. 

user1977

losgiganteskid said:

You need to be mindful that all the items that are contained within your "new build" i.e. washer dryers, fridge, cookers, hobs etc etc will be all out of warranty when you actually buy the property.  I had this problem when I bought my "new" house which had been fully loaded with white goods etc - beware

How much of a problem was it? The warranties (with all their caveats) usually expire before the point at which the appliances start failing. The risk of buying a spare part for the washing machine isn't really the sort of thing which ought to affect the house price.