Q:Hi All
First post to the group and leaning all over again the art of buying and selling.
We have found a new, one-off development of a single 5 bed house, in a small Berkshire town.
The developer bought the land with an existing small house on it, demolished it and is currently building a new 5 bed house. The house is being built to a very high specification and finish and done in an old Victorian style outside ? lots of period exterior detail.
The area around the house is very, very limited to this type of new build as most of the immediate surrounding houses are listed Victorian and Edwardian houses. There is also an SPA Special Protection Area on the surrounding area.
My question to the forum is regards to the ?guide price? for the property and making an offer. The agent has said that there is no room for price negotiation due to the rarity of this type of property being available in this particular area of the town. The guide price is the price you would pay if you want the house!
Another house by the same developer a couple of miles away did sell for the full guide price a few months ago.
I know that ?everything? is open to negations, but wondering if this type of situation is not uncommon when it comes to this type of development?
Any advice and or comments would be much appreciated.
Regards
guy
IMHO in 3 months sale prices will be 50% lower.
The change in LTV ratios has SLASHED spending power.
When you cut LTV ratios from 95% to 90% ￡10k deposit buys a ￡100k house instead of a ￡200k house.This would explain why you have never successfully bought a house.
If someone told me they would deduct 2% for being a cash buyer right now, I'd ask them to add a 0 onto it.
Very good comment. If securing a buyer means offering money off, even 20-30%, it's a bargain.
IMHO in 3 months sale prices will be 50% lower.
The change in LTV ratios has SLASHED spending power.
When you cut LTV ratios from 95% to 90% ￡10k deposit buys a ￡100k house instead of a ￡200k house.
If someone told me they would deduct 2% for being a cash buyer right now, I'd ask them to add a 0 onto it.
Don't pay what they ask pay what you can afford.
That's a max of 3.5x your salary.
Firstly, many thanks for your prompt and comprehensive replies.
This is really a tricky one for us after looking around for the past year and only now finding a new property that ticks so many boxes for us. But at the same time I don?t want to be taken for a mug and naive buyer.
The developer is establishing himself as a very high quality developer in the town and all of his previous one-off developments have all gone for the full guide price.
The EA said yesterday that he had also just talked the developer out of increasing the guide price by another ￡50k more! The developer has decided to hold the property at the original guide price on the EAs recommendation.
The EA said that if we offered the full guide price then the developer would be willing to contractually agree a time period for our current house to be sold under a refundable deposit. Also if we get in early we can pick and choose a good proportion of finishing?s to our tastes.
If we were a completely cash buyer, then a small 2% discount would probably be possible.
Regards
guy
If you want it, then keep bidding. I realise this will go against the general get-everything-as-cheap-as-you-can ethos of the site, but it's your house – you've got to live there. Currently, no seller can be confident of getting the full asking; if they thought they'd get it all, they'd have asked for more. You may yet get it cheap; if not consider each rise against the other property you might be able to get and keep going with this one until you can get more for your money elsewhere.
offer what you think it's worth, if your valuation differs then so be it. You can always increase your offer later if the first one is rejected.