Want to make an offer on a new build - How low to go

Bonnie_P

Hi, thinking of making an offer on a new build townhouse but not sure how low to go. There are 14 houses in total and only 4 have sold since last year. They were first priced £450,000 then 400,000 in March and now 380,000. We viewed them in March and they have rang us every week to see if we are still interested in buying. We have now sold and hope to complete in a couple of weeks. As we are in a good position we were thinking of putting in a very low offer but we are not sure how low to go. The sales lady has already said to put in a silly offer (about £360,000 with stamp duty paid etc) but we were thinking of lower. In need of help, thanks...

Kez100

I'd forget all the extra words 'like stamp duty paid' and go for the jugular - £X.

How much though......who knows! Obviously if you have exchanged you are in a very strong position.

Kez100

If the sales lady says £360 is a silly offer then it's only 'silly' in the sense it's too much! Of course you go lower.

Do you know what the other 4 have sold for - are people actually living in the properties yet?

Snooze

1. Don't put in any offers anywhere until yours has completed.
2. Now is not a good time to buy and you'd really be best renting til the house market bottoms out (2-3 years seems to be the general guesstimate). However, if you're happy to be in negative equity before you've even got the keys and can afford the current repayments and any percentage increase, then go ahead! No-one can tell you what offer to make because no-one knows how far the prices are going to drop (I doubt it would be valued at much more than £250k in 2 years time, personally).

Your choice.

Rob

phil_b_2

Snooze wrote: »

if you're happy to be in negative equity before you've even got the keys

tut tut. who can spot the whopping assumption.

epz_2

the word townhouse does ring alarm bells, at the moment i am picturing an ex hellhole area below the waterline with crummy build quality.

that said it might be a small developer desperate to sell and a deal may be possible.

what are similar places of the same size selling for, big reductions in price are meaningless

tradetime

I'd agree, if the sales lady is suggesting a price, then that's around the price they'd be happy to take, she doesn't work for you.
Your job isn't to make them happy, your job is to make Bonnie P and Co happy. It's a bad time for developers, especially those sitting on completed new builds, as they are depreciating assets.
There are 10 left, so unless there is a sudden rush, you have time on your side. How sure is your sale, have contracts been exchanged, are your buyers selling, and what stage are they at?
Consider the absolute maximum you are willing to pay and put in an offer 10% or so below that to give yourself room to negotiate. It's really difficult to suggest prices for property I don't know anything about, in an area I wouldn't know anything about.

tradetime

below the waterline

Isn't that London and the Thames Valley?

Noname29

where are you based ?
All of the Uk is NOT affected in the same way.
Is there a website of the houses we can look at ?
I wouldnt do anything until you have sold and got the cash. Rent for a short period.

SouthCoast

The way prices are falling you could move into a luxury hotel for three months and still make a profit on the deal.

skap7309

Bonnie_P wrote: »

The sales lady has already said to put in a silly offer (about £360,000 with stamp duty paid etc) but we were thinking of lower. In need of help, thanks...

If they are not selling......desperatley phoning you every week.......................dropping the price numerous times...................

£360k is a very sensible offer if you ask me, i'd be looking at £320k as a silly offer...no, seriously. The sales woman is trying to make it sound like you've got a bargain at £360k :rotfl: :rotfl: