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happy_2008

How To Negogiate For A New Build?

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Hi Everyone,

Im looking for any tips in order to drive a hard bargain for a new build that has caught my interest. My current situation is that i have £30k deposit which equates to more then 20% of this new build with the rest being put on mortgage.

Anyway there are 2 flats for sale which i will briefly explain below, all builds have a 5% off list price policy according to the sales lady at bell homes:

Build 1)

Fully completed and fully furnished up for £140k but the sales lady gave us a quoted price of £132k with all the furniture and blinds etc.

Build 2)

Currently still being built and due for completion in April 2011 up for £143k but the sales lady offered this at around £134k with possible legal fees thrown in.

Now, i have been told by the sales woman that i would need to contact there mortgage advisor to extract a reference number from them in order to make a booking???? Not entirely sure why this is needed as i did explain to her that we received our mortgage in principal with a financial advisor we met earlier on the day at another estate agents. Anyway, my first plan of action is to contact bell homes advisor to extract this reference number and then begin the bartering process.

However, we ideally would prefer the 2nd build as this includes 2 bathroom and balcony but what is the best price to put in the first offer? The property is up for £143 with 5% off which is around £134k so would £125k be sensible for 1st offer? If this is refused then we can slowly up our offer and get them to include the furniture packs and blinds thrown in together with the legal fees.

any suggestions would be greatly appreciated.

Cheers

Happy

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Firstly the fact theyre marketing it as a 5% discount means this is the price there is not discount.

I wouldnt speak to their mortgage guy, seems to me this is just chasing more commission for herself from a recommendation .... search for the mortgage that is right for you and deal direct ..... But one move would be to say to her ive arranged a mortgage with such and such and they will lend me X amount which means i can only offer 110K for the apartment would you accept this.

But personally id call her in a fortnight (i she has your number she will be in touch before then)..... explain to her that as we all know the property market is crashing and banks arent lending, then get her to tell you what the best price Bell can offer the apartment for as 134K seems overvalued in the current market .... be polite dont get into a conversation with her she isnt your mate and ask her to call you back whenever she can offer her best price.

Maybe mention that youve seen other apartments youre interested in but are willing to bide your time until an affordable property comes onto the market.

But how many apartments are they building, how many are they CLAIMING have been sold? Where is the development? How is the market doing in this area?

You can obviously wait until April 2011 to move this gives you plenty of time to negotiate.

Edited by BuyInOxford

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The mortgage advisor is apparently independent! According to the sales lady they have already sold 3 plots in the building and its the last remaining block of flats to be built. I am tempted to call them tomorrow and offer £120k and ask them to sit on that offer and call be back if they decide to accept it. I will also let them know that i will be down the area in a fortnight to view some other properties and for them to call me when they are prepared to negogiate.

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Great advice given above.

For the 2nd flat, I'd be very reluctant to put an offer on a place that has not yet been fully built.

It may have odd shaped rooms, or may not be on the right spot/floor you'd prefer, or may not be as good as the first one you've seen. Besides, there could be delays in the building process, and you'd be uncertain to move by a certain time - difficult to plan anything.

In any case, in the current climate of the market, YOU hold the cards, not them. It's also your home.

Good luck with whichever one you go for.

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Great advice given above.

For the 2nd flat, I'd be very reluctant to put an offer on a place that has not yet been fully built.

It may have odd shaped rooms, or may not be on the right spot/floor you'd prefer, or may not be as good as the first one you've seen. Besides, there could be delays in the building process, and you'd be uncertain to move by a certain time - difficult to plan anything.

In any case, in the current climate of the market, YOU hold the cards, not them. It's also your home.

Good luck with whichever one you go for.

In the current market you MUST add a condition to the contract that lets you out if the property isn't completed by a (reasonable) date. If the builders insist on keeping their clause that you are bound by the contract forever, regardless of any delay in completion of build, WALK.

tim

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Get a picture on how well priced the property is, you can't make this decision without looking at what similar properties have sold for (not asking prices, use the sold price feature on Rightmove).

And treat the people from the property developers in the same way you'd treat any other comission based sales person. Don't believe anything they say.

One other thing, builders ALWAYS lie about completion dates. If they say April, June is likely, November entirely possible. Insist on seeing the unit you're buying and watch a couple of episodes of Grand Designs to get a feel for how long construction takes.

Edited by Cherubium

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  • 142 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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