house purchase dilema

gazpacho_uk

our house has been on the market for over 6 months now, we have a 2 bed townhouse and need to move into a 3bed. After only 2 viewings in that 6 months we are now considering buying a new build as they say they will pay the full market value for our home. Unfortunately the new build homes are about £10,000 / £15,000 over our budget so we have a dilema as to what to do.
Here are the details which may help you to advise on what we should/could do:

We have just 8 years left on our mortagage.original amount £48,000
current house value £130,000 (dropped from £140,000)
cash payment in savings towards new house: £36,000

we bank on transfering/continue paying the current mortagage without any major increase as this is comfortable to pay without stretching our finances.

so putting all the above together we have £214,000 to play with (if its that easy) and the new build house we are looking at is £230,000.

It is possible we can find a further £6,000 or consider an increase in our mortagage, but any advice or help form you guys is much appreciated and needed as we dont really know which way to go now. Staying in a 2bed property is not an option due to 2 seperate sex children sharing a room

thanks

John

gazpacho_uk

I forgot to ask above ...... is it possible to negotiate a lower house price on a new build ????

Doozergirl

The developer will pay full market value - what they value on is a six week sale. Whatever you are marketing your property at, it is obviously not a 6 week sale price if you have only had two viewings in six months

You can try and see what they value the house at, but if the general public aren't biting at your price, the developers won't either.

If you are in the position where you have sold your own house, you are in a position to negotiate the price of a new build in a downward direction. So when they part-ex and pay you full market value, they simply screw you at the top end because you don't get any discounts. You get a sensible price for your house and pay an overinflated price for theirs.

gazpacho_uk

Doozergirl wrote: »

The developer will pay full market value - what they value on is a six week sale. Whatever you are marketing your property at, it is obviously not a 6 week sale price if you have only had two viewings in six months

You can try and see what they value the house at, but if the general public aren't biting at your price, the developers won't either.

If you are in the position where you have sold your own house, you are in a position to negotiate the price of a new build in a downward direction. So when they part-ex and pay you full market value, they simply screw you at the top end because you don't get any discounts. You get a sensible price for your house and pay an overinflated price for theirs.

Looks like will have to come up with a plan "C" then ..... ohhhhh dear

gazpacho_uk

not even any advice on plan "c" ...... we are dooooomed

poppy10_2

Yep .

pinkshoes

well how about posting a rightmove link to your house so people can give their 2 cents worth and tell you any improvements that need making?

No chance of converting an attic to a 3rd bedroom or anything? Extension?

Mrs_Thrify

Hi Gaz, well, hate to say it but you need to drop the price of your house again (I'll cry too!). It is over priced if you are not getting folk through the door. Have you tried talking to EA or even changing to another? We have just dropped our sale price for the 3rd time :mad: @ £5,000 a time. So now reduced by £15,000. Folk are viewing now all but slowly, a few viewings a week. Someone has got to want it soon .
Prehaps you need to sell @ *** and then look for a home in a cheeper area?
Good Luck

wafer_2

Hi

I would try to negotiate hard on the price of the new build, given the current market conditions, offering 10-15k less is not unreasonable. Has the new build/ development been on for long? If it is the last house in the development they need to sell then there is room for negotiation because they want to get rid of it but if it is only just being released and people are queuing up round the corner then they may less inclined to reduce price but if you don't ask you don't get.

See what market value they offer you and then put in an offer lower than what you can afford because they will probably try to negotiate on that, sit back and wait if you are not desperate but be sure to make the impression that you are serious buyers of course so that if someone else comes on with an offer, they will let you know first hand and then you can see what you want to do.