New Houses at bargain prices

peter1910uk

We are in the process of trying to move house and have found a very nice new house we like. The advertised price is a good 20K more than we could afford really but the house builder in question has "suggested" a deal can be struck.

Has anyone else had experience in the last month or so of buying new houses and how much they can be hammered down on price?

RHemmings

peter1910uk wrote: »

We are in the process of trying to move house and have found a very nice new house we like. The advertised price is a good 20K more than we could afford really but the house builder in question has "suggested" a deal can be struck.

Has anyone else had experience in the last month or so of buying new houses and how much they can be hammered down on price?

If you can't afford the new price, then that puts you in a strong position. And being a house builder, they are less likely to be "emotionally attached" to the property. You're also going to be negotiating to people who won't lose (much?) personally if the price is knocked down.

If I were you I'd go in with a low offer. How much is the new price of the property, and can you post a postcode or rightmove link?

peter1910uk

The other point I probably should have mentioned was that they offered a possible part ex, which would suit us down to the ground. I accept the offer will be "low" but as long as the differential we could strike is within my budget I'd be happy.

New house is in DE65 5NF. One like it sold in June last year for 205K, next one sold in Aug for 200K, price is already down to 190K. Its a house we would want to stay in. That said I wouldn't over bid for it, there will be other houses.

Would I be right in guessing that they have a potential monthly target of houses to sell? and the month end is approaching!

I should also say as well we are not in a rush to move, thats not to say we don't really like this house!

brit1234

Ask for a 20-25% reduction and if they say no walk away, you can get better discounts elsewhere. Prices are coming down fast now 0.6% this month, off plan order books have diminished and generally new builds aren't selling. You have the power to negotiate good deals in these circumstances.

Guy_Montag

What's the difference you need? I guess that's key, base your offer on that. If you want the difference to be £50k, aim for £40k or £30k & see if they nibble.

Remember with house prices dropping, if you walk away you're not going to "miss the boat".

peter1910uk

Thanks both!

I'm aiming for a increase of around 20K (or as near to this as is humanly possible). Current house is worth 160K even in this market. New house is listed at 190K. We owe 90K. The value of either house matters little to be honest, I'm not worried how they want to massage the figures. They could offer 150K, and sell me the new one for 170K, i guess they won't! But thats the game.

I can afford to walk away if I have to (will they call me back??).

glen8

peter, you'll get that deal easy!!!!!!

Gonzo

They may call once or twice, but not repeatedly.

We tried to do the same but they weren't having anything of our offer, so they must have a minimum profit margin they won't go below unless desperate.

peter1910uk

So you think even at "part ex" prices that might offer 150K? I hope so!! Be nice!! I can't believe the amount people think I can get as a discount, don't worry thats what I'm aiming for it just seems a lot! They must be more desperate than I thought.

A mate of mine has just rung the builder equiring to test the water and managed to get out of them that they are going to have a number of houses in "stock" soon. I guess they would rather have them sold, even if it means a lot less profit?

peter1910uk

Gonzo - what discount did you try for? Also did you have a part ex to consider?

glen8

builders are desperate to sell houses

They know the longer they go unsold, the less they will get for them