Buying part ex property off developer

Myci85

We have viewed a house a few times that we quite like and have been mulling over. The EA has advised us that the house was sold by the last occupier to a housing developer as a part ex for a new build, and I can see on Zoopla it is showing as sold May 2023 for £225k. It is on the market for £250k, reduced last November from I think about £280k.
Has anyone ever bought in similar circumstances? We feel the property is priced higher than we would pay, but we are trying to judge what sort of offer might be accepted, which seems harder to gauge when it isn't a vendor needing to sell to move. In some ways we feel maybe the developers will just want rid of it and after having it sat empty and paying heating etc for 9 months, might accept a really low offer to just get it gone. On the other hand, we wonder if the price they paid for the property is negligible compared to the money they have coming in for their new builds, it is a business account so not someone needing the money, and whether they might stick out for asking price because how long it takes to sell makes little difference to them?
The EA said when we last viewed they'd not exactly had much interest, but equally I'm noticing properties that have been sat on the market for months on end are suddenly selling now, so there could be other interest since then. 

theartfullodger

Crystal ball time: Nothing much crystal, an awful lot of balls.  I'd bid low-ish & see what happens - but I'm happy with a property gamble.

RHemmings

I don't have experience of this, but I would think a housing company would be realistic about selling the property. I would have thought that they wouldn't be offended by a low offer for their 'special' house like a minority of individual sellers might be. But, be more hard-nosed.

No problem with putting in an offer that I can see. Other than it being lower than someone else's offer and potentially you losing the house that way. 

If the house is empty, then you avoid some of the issues that develop in long chains. 

RelievedSheff

We have not bought a house from a developer but we did part exchange our last property against a new build.

They gave us £90k for the house which was about 90% of it's open market value. They marketed it and sold it within a few days for £90k.

The money they made on the deal was in the new build.

Myci85

Yes I know its impossible really to know without testing the waters with an offer, just wondered if anyone has any experience of similar. We'd like to think, knowing they paid £225k and its been sat a while that they'd at least take that. Just trying to weigh it up against other properties we've seen and whether the compromise on this place being a bit smaller than ideal, might be more tempting if we can get a bargain. 

Albermarle

I would guess that even more than with normal vendors, they will accept a lower price if you can prove you are a good buyer ( cash/mortgage sorted - no/very short chain), as they will not want to spend/waste time on failed/elongated transactions.

TheJP

I bought my current house which was a part ex, go in low then increase. I wish i offered much lower even though we got some money off the asking price for a new boiler etc. I think the developer made about £25k on the sale although i think that was down to the previous owners selling low to the developer in return for extras on their new build.

UnderOffer

Our neighbour part exchanged their house for a new build, it went on the market for same price and was then dropped by £25 twice! It eventually sold for -£70k less than my neighbour part exchanged for, everyone was happy as developers made huge profit on the new build, ex neighbour got what they wanted at part exchanged price and new buyers were really pleased with their ‘bargain’, win win for all involved. 

In some ways it’s easier to negotiate with a developer as there is no emotional attachment to the property, they just want rid. 

Make an offer and get things started. Good luck. 

njkmr

you dont try you dont get.
Stick the low offer in as they may well accept to get it off their books and improve their cash flow .
No harm in trying.