New Build P/X + Haggling over discount

skint2008

Hi there

Looking to haggle out deal with Barratt, i have a home worth £150K (currently on the market) and have an eye on a new buid listed at £225K

I want 20% off theirs and no more than 5% knocking off my home - they said 10% was possible and they'd think about it

do you think it's likely if I persevere I’ll get the full 20%?

also as ive currently got an estate agent will i have to pay them too ? (appreciate I'll have to pay the deferred HIP & advertising costs)

bryanb

Problem could be the 5% max off yours Have you found a buyer? or perhaps you are partx ing with Barratts? Persevering could be a long job if you haven't got a buyer.

skint2008

hi mate
the deal ive put forward to them is they take my house in part exchange for no lower than 5% off its current market value

hostman

All the builders are desperate for business, you should be able to achieve 20% fairly easily. Tell them its 20% or you walk away.

But ... you haven't sold your house yet. Only expecting to drop 5% off your house but then wanting 20% off another is arrogant. You'll be lucky to even get viewings.

bryanb

Whilst builders may be desperate for business, I doubt if they are desperate to buy yours. How would that help cash flow?

SouthCoast

How would that help cash flow?

I have wondered that about the properties Persimmon has taken in part-ex. Have a look at their East Sussex stock:

http://www.persimmonhomes.com/partx.aspx?county_id=22

skint2008

update

called today with a NOOOOOOOOOOO

shame really, surely it would be easier to sell mine (first time buyer property worth £150-£140) than a £220K'er ??????

Never mind

hostman

skint2008 wrote: »

update

called today with a NOOOOOOOOOOO

shame really, surely it would be easier to sell mine (first time buyer property worth £150-£140) than a £220K'er ??????

Never mind

Go through the math:

A first time buyer would need a 10% deposit, £15000, plus approximate £3000 for legal fees, mortgage arrangement fees, stamp duty etc. This would leave a mortgage of £135000, to secure that mortgage, a person buying on their own, would need a wage of about £40,000, or joint £45k with no or minimal debt. Over 25 years, repayment, this is not far off £800-900 a month. The cost to run the house (including mortgage, excluding food) would be approx £1200-1300 per month, depending on council tax band, energy usage etc. In uncertain times, who would want to commit themselves to that?

Prices are falling and most intelligent people would not be buying now, or if they did buy now, they would want a nice discount off your asking price + compared to other previous sold prices. I know I would and I'll be a first time buyer at some stage within the next 12 months, buying a property at a similar price band

Treadmill

skint2008 wrote: »

Hi there

Looking to haggle out deal with Barratt, i have a home worth £150K (currently on the market) and have an eye on a new buid listed at £225K

I want 20% off theirs and no more than 5% knocking off my home - they said 10% was possible and they'd think about it

do you think it's likely if I persevere I’ll get the full 20%?

also as ive currently got an estate agent will i have to pay them too ? (appreciate I'll have to pay the deferred HIP & advertising costs)

Theres not much chance of you shaking hands on this deal at those figures. the house you are buying generally needs to be a minimum of 30% more than the house you sell. You want £142.500 for yours So I doubt they will do a deal for less than £185.250 and that would be at a push which is less than 20% off but I'd certainly take it if I was you.

Matt_B_3

Hello forum,

New recruit here looking for valuble advice.

I am currently in the process of buying a 'new build' property & am looking on anyones thoughts / experiences regarding negotiating. The current situation is as follows:

Asking price of new build property: £169,950

My current property as independently valued last week: £124,950

Developer's part exchange offer against new build: £120,000 (+ the added bonus of no Estate Agents - possible saving of £2,0000)

Developer (Portford Homes) have also offered the incentive of floor coverings throughout, oven / hob, re-turf both front & rear gardens.

Should i be looking to negotiate even further & if so, what advice could anyone offer? (bearing in mind that my partner is worried that the developer may call our bluff). We have also put down £500 reserve fee at this early stage & would lose £250 of that if we were to back out, which will not break the bank!!

Any advice / experiences which may help would be welcomed.

Regards,

Matt B.