Newbuild offer - what is realistic

gemima

Hi,

We have just accepted an offer on our house but a bit lower than what we wanted due to stamp duty on £250K. Having said that the buyers are adding an extra 5K for F&F. We are happy because it has only been on the market for 2 weeks and this was the second viewing!

Anyhow, we would really like a newbuild of which there seem to be plenty in our area but not sure how much realistically we should be putting in as an offer because we certainly can't afford their over inflated prices at the moment. We are in a strong position (small chain) with a hefty deposit.

I have no problems with being cheeky as its not their emotions at stake but don't want to be laughed out the door!

A couple of scenarios we have seen some newbuilds on at £325,000 and another on at £299,950.

Any advice/experiences appreciated.

Thanks
Gemima

LandyAndy

Depends on a lot of factors you haven't mentioned but I wouldn't be embarrased to offer 80% of the asking price.

wymondham

dolcevita wrote: »

The key is not to get side-tracked by offers of carpets, cookers etc. and negotiate on the price of the house alone.

Most builders are in as much financial trouble as a lot of individual sellers at the moment and will want to sell asap.

That said you be opening offers at about 75% below asking price and not paying more than 80%

This would bring the 300k house down to 240k, which will save you on stamp duty as well.

In the meantime, keep looking and good luck.

good points, reminds me of a friend who ignored the white goods and in fact asked the builder to remove them .... they ended up just giving them to her to avoid the hassle!!

glen8

If you have already sold yours the builders will bend over backwards to sell.

at £325,000 I wouldnt pay more than £280,000 and push for a few extras (carpets, wardrobes, turfing, fencing)

We were doing a part-ex and instantly got £25,000 off a house priced at £230,000 inc carpets and wardrobes

smnb08

glen8 when you did a part ex who was the builder??
i want to part ex mine and was wondering what to offer on a house up at 190k the builder is redrow.
i know they will offer me less for mine than its worth but still think its better than the hassle of selling a house.
i thought if you are part exing you can get much off the new house!!

glen8

It was with persimmons, I have another thread somewhere detailing everything

We turned down the first offer, 24hrs later Bellway homes called back with an even better offer on a 5 bed house (persimmons was 4 bed) :eek:

we are going to look at it this weekend, also note that bellway are offering a 110% part-ex and still discount

forget about not getting anything due to being a part-ex customer, builders can't sell..period!

smnb08

just wish i had some bellway developments near me!
is there no one on here thats had any experience of part ex with redrow????
i havent seen any positive comments on redrow!

gemima

Thanks for your replies so far.
I know the discussions further down are slightly off topic in terms that we are not doing p/ex but I always thought that doing it this way you had to be going upwards of 30% which is why we didn't go down this route. Also I was told that if you were sold then they were more likely to do a better deal than with p/ex.
Are you guys going up by 30%?

glen8

You do get a better deal if you have already sold

That said, deals can still be achieved on a part-ex

I think all builders have the 30% on part-ex, both persimmons and belways made sure we were going up by at least that amount (which will are)

smnb08

i am sort of hoping to be going up by 30% in as much as that there is 30% based on the value of mine and theres now but it goes below 30% once we have done deals(hopefully!).dont know yet if they will allow it will find out on friday when i speak to the sales lady.