New Builds advice needed

seabiscuit_2

okie okie - i know they dont represent best value for money and all that but due to various reasons we are considering part exchange for one

any advice how to make sure we get the best deal we can - bearing in mind its already built and ready to move into - carpets included as is fitted kitchen units inc fridge / freezer etc

skylight

1. dont part exchange
2. find some new builds that are early in the build stage (the first phase not quite released yet)
3. find some that have some left after having the final phase released some time ago.
4. Lie (oh - did I say that???) Say you are a member of a property investment club and these are the sorts of deals that the members are interested in. tell them that the members are only interested though with discounts of at least 15-20% and what could they do. dont promise anything. just say that the members might take only one or several.

Haven't come across a developer yet who hasn't bumped up the price to allow for discounts.

terrierlady

if you are looking for part exchange then large discounts are not the norm, the p/ex is considered to be the incentive but at this time of year many developers are at half year end and will do lots of good deals, the investment angle wont work as you are looking to p.ex and only some developers will do good rates as per the above posting but to qualify you have to complete in less than a month which you can only do if you are proceed able.
Because of the slowing down of property now is a good time to stike if you like new builds.
The developer will likely get three valuations on your property by their nominated estate agents and the price will usually be a forced sale price which they offer you, they don't buy property so will be looking to resell in a back to back sale that completes the same time as you do on the new build.
Ask for a cash incentive if the property sells whilst you are still living in it
remember you home will need to be open for viewings at a moments notice as the developer will chase the agents for a quick sale.
p/x ccan be a good move for various reasons but remember the price offered will not be as good as the usal sale price.

seabiscuit_2

thanks - we have seen a new build that we want and because we need to relocate sooner rather than later we cant wait forever for ours to sell - we've been on the market for over 2 months and had 6 viewings and no offers - we just cant afford to wait for one to be built and as this one is ready to move in - we could be in by the end of august

im off to see them soon so will try to negiotate with them - esp since their price is just over the top of our budget so would want to get as much off as possible

nrsql

You might also consider renting out your current property and transferring to a buy to let mortgage to finance the new purchase.
You might well find you can find tenants easily and can still try to sell when they come towards the end of their term. It carries more risk but is worth considering.

t_i_g_e_rr

Hopefully these few thoughts will help:
I wouldn't tell the developer that you are keen to Part Exchange (although you might already have done this). Try to get discounts to secure the sale first, then tell them that you are waiting for your own house to sell. The sales person might then try to sell you the part exchange idea.
Discounts are likely to affect the sales persons commission, but the PX might not (since the Part exchange will ideally be sold at cost or a slight profit), however, the PX might be viewed as a big enough incentive if this is taken first, which might discourage the developer from giving a other discounts.
If the plot is already completed the developer will be keen to sell the plot; often they try to sell the plots before they are complete to help with cash turnover. Ask them how long the plot has been finished.
Part exchanges are being offered more now because the developers are keen to sell their own plots. It is very much a buyers market at the moment!

terrierlady

tigger ,when you visit the show home complex/sales centre the sales negotiator should get your name address etc and the MAIN question they ask , are you proceed able, ie is your own home sold , on the market is not proceed able as you have to get it sold, so i would image they already know that p/x is your main interest.
we get paid if a plot sells not by the price of the plot.
yes its a smart buyers market.