New build so confused any advice out there?(13 Posts)
Have been looking at a 5 bed new build on at 358000. They've offered to part ex ours for 135 and throw in:
Stamp duty 7700
1000 legal fees
6 k off price
Our neighbours had theirs valued recently, exact same house as ours, at 175. While I don't think that is realistic, 135 seems low to me (I think the valuation is based on selling on 6 week period).
They're offering carpets and stamp duty on other properties on the site so not just to us. All in their offer is about 152 if you take into account the discount and not having to pay estate agents. It also seems pretty stress free. But I worry re a new build depreciating the minute you buy. Is it worth going back to them again to haggle? (We've been back once and they took extra £1k off price). What do you think?
Do new builds depreciate lots? Never bought one before, help please!!
Well, they want to make money on your house, and if they offer 135k they are bound to think they can make money out of that.
I suggest you get an independent valuation, and think carefully.
I think we're attracted to the no fuss of people looking round, no last minute pull outs etc. will see them tomorrow and have a chat I think
Usually you'd get 3 valuations based on a quick sale and be offered the average. So if you've only had their valuation you need to get your own too.
If yours is worth £175, realistically a sale of £170k and their offer is £152 (all in), that does seem too low even considering its hassle-free (ish!). Id try and negotiate with them, but you will need valuations. Perhaps they'd move more on another plot?
As for why some new builds depreciate, over-supply is the problem. Why buy a second hand property, if you can get a brand new, hassle-free one for the same price? Even if all the new ones have gone, if its a huge estate there can be lots all exactly the same on the market, so price is all that matters and usually buyers can find one seller desperate enough to reduce dramatically. And so the new lower price becomes everyones 'market value'.
Interesting thank you Sunny, it is a large development. There are only 2 5 beds currently but lots more development planned so who knows...
Lots to think about thank you
I'd steer clear of the new build, unless you build one yourself. They are huge developments, built on the cheap, with usually a foot of space between properties and next to no garden. Then, as mentioned, there is a natural ceiling to resale prices as there will always be lots for sale that are more or less identical, which drives the prices down.
The offer they are making you also sounds cheeky - even if you do want to go ahead with them, consider selling on your own (not px) with a bit more hassle, but you might be £20k better off.
We have part exchanged twice, both times because we hadn't been able to sell. It does make it relatively stress free but we have suffered financially for it. We are semi-detached and our next door neighbours did not part-ex, they had a discount of £15k instead so as soon as they moved in our house value plunged by that amount. Then they later sold at a loss and our value dropped even further, putting us into negative equity. 7 years later we are trapped long term in a house we had thought would be for 3-4 years.
Conversely, my sister has made a healthy profit on the new build she bought a few months before us. So it is possible to make money on a new build but imo you'd be lucky and they do depreciate, especially if there is lots of development nearby.
You have to bear in mind that part-ex is the last thing a builder will want so if you're being offered one then is it because they're having trouble shifting the plots?
Would I part-ex again? I would, but only to a forever home.
Thank you all, I dislike new builds anyway, am much more a Victorian type house person, but my husband is fed up with all the diy and it just seemed really practical. We're going to see them at 10 today and I think the offer is cheeky too. Think we'll turn it down unless they can offer more. Also there's a new build up the road, a 4 bed, not on an estate on at 245k and they can't sell it.
I think the easiness has been clouding my brain a bit.
It depends where you are in the country. There is certainly no loss of value in the new builds where I live.
I also think they have offered you a fair deal. No hassle at all.
They are covering everything for you. Yes at a cost but they are taking on that risk and allowing you to move hassle free!
Other things you can haggle for are a free dishwasher. But they have pretty much given you all the other free things they can.
When I went to my new build I had to pay for all of the things they are giving you so you have a good deal.
Your bank won't value the newbuild at any less than it is worth.
I say go for it!
I do love a new build though!
I understand the lack of hassle but turn it around..if someone said we'll say you 20K to tidy up, have viewings & a bit of stress would you do so? It's a lot of money to give up.
I bought a new build house 6 years ago with my then partner. I lost £15k on my part excahnge but like you they threw in payment towards solicitors, turfed the back garden, paid for removals. At the time it was what we wanted.
6 years later it's taken 12 months to sell the house and I've taken a £30k loss on my equity. My ex partner didn't put anything towards the house so I'm the one taking the hit.
I wouldn't buy a new build again. But more importantly I shall never buy with a man again!
I've been thinking about this recently. I'd look at what similar size older properties in good condition have sold for in your area for an idea of whether the overall deal is good value. What's more important long term - to move now or to preserve as much equity as possible?
I would decide what I was prepared to pay and stick with that. They may still come back to you even if initially they turn you down.
Wondering if we're looking in the same area as I have also seen some non estate newbuilds for £245k not selling!
Another way you could look at it is that you could sell your current house quickly and cheaply, by just putting it on at a low price, and then just buy whatever you want
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