Putting offer in on new house now
Discussion
I am currently considering buying a house that I like. It is a new build and is ideal for us in the area we like and the road we like. I am not too bothered with the house as an investment as it will be a home for the next 10 years or so. I am struggling to decide how much to offer with regards to the percentage below asking price as they have indicated offers would be welcome. It has been reduced slightly already (couple of % only) and not all the houses are sold. (Only a small development). I am a cash buyer so would this make a big difference.
All opinions gratefully received.
All opinions gratefully received.
Opinions on new builds here recently have been that - if the offer you make doesn't embarrass you when you make it - it's not low enough.
What's it up for?
Edited for absolute stupidity.
Please no-one quote me - I must be ill in the head tonight. That short post took 4 attempts.
What's it up for?
Edited for absolute stupidity.
Edited by Olf on Thursday 24th July 20:06
Edited by Olf on Thursday 24th July 20:06
Please no-one quote me - I must be ill in the head tonight. That short post took 4 attempts.
Edited by Olf on Thursday 24th July 20:07
Thanks for the replies. I was thinking 20% below asking price but as I haven't bought a house in a market on the way down I feel in no mans land. Does it make a difference how much the house is worth. Is there a much bigger margin on large houses as land prices in the area are not cheep.
Try and find out something about the developers.
I know of a few small developers that are s
tting themselves at the moment, overstretched themselves on cheap credit and are now desperately seeking any reasonable escape route.
I'd do some research on what a similar place in that area was worth at the peak last summer and start negotiating 40% below that. Its not as if there's a shortage of property out there at the moment.
I know of a few small developers that are s
tting themselves at the moment, overstretched themselves on cheap credit and are now desperately seeking any reasonable escape route.I'd do some research on what a similar place in that area was worth at the peak last summer and start negotiating 40% below that. Its not as if there's a shortage of property out there at the moment.
rex said:
Thanks for the replies. I was thinking 20% below asking price but as I haven't bought a house in a market on the way down I feel in no mans land. Does it make a difference how much the house is worth. Is there a much bigger margin on large houses as land prices in the area are not cheep.
Sorry, is this a new build or a resale property? I've been giving advice this last couple of weeks and managed to save a friend a bloody fortune on a new build.Remember, it's a buyers market. Therefore you're in the position to call the shots - not them.
I would test the water to see how willing they are to compromise. Start with a really low offer - in fact, try to extrapolate forward to about 18 months (winter 09) and imagine how much it might be worth then - knock 10% off that as a good starting point. I know it's not easy, but you want to do the best for you and your family, the same way the seller wants for himself. It's just business, and you shouldn't let it get personal. Also, be prepared to walk away if need be. Plenty of other opportunities now and in the future.
Good Luck!
I would test the water to see how willing they are to compromise. Start with a really low offer - in fact, try to extrapolate forward to about 18 months (winter 09) and imagine how much it might be worth then - knock 10% off that as a good starting point. I know it's not easy, but you want to do the best for you and your family, the same way the seller wants for himself. It's just business, and you shouldn't let it get personal. Also, be prepared to walk away if need be. Plenty of other opportunities now and in the future.
Good Luck!
I would start with an opening offer 40% below current asking & aim for a walk out position of somewhere around 20 / 25% below current asking, making sure you go up in ever decreasing increments during the negotiation. Don't consider any cashback deals etc.
With your first offer, you have to aim low and ensure that they are fully aware of your position, as this will be your main negotiating strength.
With your first offer, you have to aim low and ensure that they are fully aware of your position, as this will be your main negotiating strength.
Exactly, there's load of tricks to save you money, the only way you have an advantage at the moment is if you have no house to sell, find the house you want on a new development, lace up the hob nails and kick them hard. I managed to advise a friend to get 30% off and have loads of stuff changed in the house. the other trick is, when you exchange, a few days before completion, tell your FA or the site Salesperson that you're 10k light on your deposit and that you might have to pull out or delay completion for a few months, they will, 9 times out of 10 cover that shortfall. You can buy that 46" TV, some tasty hardware and anything else you had your eye on.
Its worth a go as they're desperate for cash flow at the moment, they've had such a great time until now, the likes of Wimpey and Barratt are desperate for the cash. At this point in time, every region has to report to directors and chairmen with their figures, so your chances of getting extra money off is good, so go fill your boots!
Its worth a go as they're desperate for cash flow at the moment, they've had such a great time until now, the likes of Wimpey and Barratt are desperate for the cash. At this point in time, every region has to report to directors and chairmen with their figures, so your chances of getting extra money off is good, so go fill your boots!
spikeyhead said:
rex said:
Wow, I'd better get the big boots out then. Just to clarify, yes it is a new build and only 40% have been sold at present. Smallish company as well. I will let you know how I get on.
Do you fancy being surrounded by housing association tenants?its all too easy to get carried away with this "buyers Market" and I'm stronger than atlas cause I want to buy mentality. But consider this, offer too low and the seller may well tell you to get stuffed and find a tennant. If you want it and you intend to stay in it don't try and screw the owner cause you may end up shooting yourself in the foot
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