Buying a new house from Builder

mollyp

Hi All,

This is my first thread, not sure if i'm even in the right section for this question but here goes: I am interested in buying a new house in a new development in Waterford City. They have already dropped in price but my question is whether or not I could offer below the current asking price? I know if it were second hand it would be the norm to offer below, but are new developments different? Or with the current climate will the builder appreciate an offer. There are roughly 15-20 houses empty in the estate.

Thanks!

Boggles

mollyp wrote: »

Hi All,

This is my first thread, not sure if i'm even in the right section for this question but here goes: I am interested in buying a new house in a new development in Waterford City. They have already dropped in price but my question is whether or not I could offer below the current asking price? I know if it were second hand it would be the norm to offer below, but are new developments different? Or with the current climate will the builder appreciate an offer. There are roughly 15-20 houses empty in the estate.

Thanks!

Offer what you want, all they can say is no and it doesn't prevent you making another offer.

Nody

Boggles wrote: »

Offer what you want, all they can say is no and it doesn't prevent you making another offer.

This, and I'd even drop below what you want to pay as well for the simple reason of negotiation.

mollyp

Thanks for that I'm a first time buyer and am just unsure as to what the procedure is. I know this sounds like a dumb question but what is a reasonable offer to make?? The house is priced at the moment for 255k (after being originally sold at 300k)

dahamsta

Offer them 200. They won't take it, but you might pick it up for 225 with a bit of back and forth. Don't be afraid to walk away, you can always go back later if you change your mind; and they might come back to you in the meantime if they need to shift inventory.

Some developers in dire straits will have been given instructions by their bankers about what they can and can't sell at, but there's no real way of knowing whether it'll apply or not in your case.

If you don't feel like you're up to the job of haggling, either work on your confidence or bring someone in to do it for you, there's no point in going in weak. A successful seller or buyer (in any market) will do if you know one, a solicitor if you don't.

adam

Davidth88

Assuming your finances are in order , ie you have the mortgage offer etc then you are in a nice powerful position

Offer 200 , or even 185 and tell them you have everything ready to go.

They can only say no.

Nody

What are houses in similar areas going for (that actually sell not what they ask)? Then drop 30k below that.

Remember that the most powerful negotiation skill is the power to say no and walk away from a deal. You'd be suprised how many people can't do that.

Hence make them an offer (preferably in person given the chance); they will counter with something else. Insist on your price, they counter again, go up 5 or 10k only; they counter again most likely. Then say, sorry but I've given you my offer, I got the loan signed by the bank; this is as far as I can go. If they counter again walk out as they will most likely come to your level.

Also keep in mind that they might be willing to add things in rather then drop the price. For example what if they add all kitchen stuff in or pay the solicitor fee or pay for the moveming company etc. Stuff like this are hidden costs on top of the house price which you will need to keep in mind where they might be able to take a minor loss but you save more.

mollyp

Thanks to all for your replies, I have taken all your suggestions into account

dh0661

Hey OP - let us know how you got on.

dudara

Moved to Accomodation & Property

dudara

bobbysands81

dahamsta wrote: »

Offer them 200.

I would make an offer even less than that to be honest.

Prices are in freefall at the moment, nobody knows how far they'll fall.

I'd be looking at an offer of around 165k... tops. They can only say no.

Freddie59

Molly, I'm also in Waterford. PM sent.

freddie.