FTB - New Build Offer

drocks wrote: »

Hi guys,

Me and my partner are first time buyers and looking to purchase a new build. The new build in question is based in Northern Ireland (anyone with recent purchases from this neck of the woods would be appreciated) and we viewed the house yesterday. It is a 3 bedroom semi detached house with a sunroom attached to kitchen. The house is the last plot on the on development and there will be no more phases. The estate agent has stated there hasnt been much interest and has been on the market for four months.

The house is fully built and ready to move into and the fact that we are ftb i believe puts us in a strong position. We are looking at new builds because we like the fact we can build to our own specifications. However this wouldnt be the case with this new build as it is already built. It is located in an area which we like and is priced at 189500. Due to the length of time of it being vacant and not much interest being generated in the property and the fact it is already built to spec i want to make an offer 20% off the asking price. Is this feasible on a house that is the last to be sold?

I welcome any tips or anecdotes of your experiences?

Thanks

Was it one of the show homes? They are often the last to be sold. The builder has got the timing exactly right. The house is ready to go on the Spring housing market. Unlikely that they will accept an offer at this time of year as they will expect it to sell soon. Autumn coming up to Christmas is not a good time to sell houses. Spring is.

What did the others sell for? How competitive would the house be if the developer reduced the price by 10%? Would it sell to someone else tomorrow?


Having nothing to sell (and the money available puts you in a strong position), being a first time buyer with general naievity & lack of knowledge of the buying process, less familiar with negotiating skills in house buying etc could put you in a less strong position.


The fact you viewed the property yesterday and want to put in an offer today shows you are keen. This will be seen in the whites of your eyes by the agent and weaken your position since they will know how close to get you to the asking price.


I'd suggest another viewing alongside other properties, show a general disinterest but say you've had a purchase fall through, money is all ready, this place isn't quite what you want but it will do given that you need to be in by March for x y or z reason. Your offer is x but you will exchange and complete within 4 weeks for that (then leave all the delays down to others).


Have a list of 5-6 comparables (sold properties nearby) that are all cheaper than this one.


First time buyers don't generally make good property purchase negotiators.

drocks wrote: »

I got in touch with the estate agent today who is handling the property and they stated that the price is non negotiable (surprise surprise). What would be my best plan of action to submit an offer of 170,000. Do I list my reasons why I believe this an acceptable price or just say that this is my offer and wait and see?

So having had advice from four people who between us have advised that it is a good time to be selling and that an offer much below the asking price is unlikely to be entertained, alongside Mutton Geoff's good advice not to appear too keen and to do your market research so as to improve the positioning of your offer, you've gone straight back to the agent on the next working day! They know you're as keen as mustard so they're probably quite confident in saying that the price is non-negotiable. They're digging their heels in at £189,500 and you intend to offer at £170k? Good luck with that.

I'm not sure it's worth anyone giving any more advice, you're clearly intent on doing your own thing anyway. Nothing wrong with that, but what's the point in asking? Mutton Geoff already suggested the best way to contextualise your next move. Good luck with it.

drocks wrote: »

I got in touch with the estate agent today who is handling the property and they stated that the price is non negotiable (surprise surprise). What would be my best plan of action to submit an offer of 170,000. Do I list my reasons why I believe this an acceptable price or just say that this is my offer and wait and see?

Yes do that.