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We have seen a brand new fresh out of the box house, built by a small local builder on a small 5 house development.
We know it has been on the market since March of this year. There are three remaining.
They are nice properties and we both like it (probably) enough to pay the £420000 asking price.
But any money is better in my pocket rather than the builders.
Do small builders generally have any leeway? Is it worth chancing our arm or would it lead to bad feeling before we have even started. I have no idea of the profit margin and I guess that would change site to site, but I would guess he's making some form of profit!
He still has to put in the kitchen and bathroom. If we negotiated a reduced price, then I don't want them fitted with B&Q value range.
How much did the other 2 sell for ?
March is a long time for a builders money to be tied up. I’d either negotiate on price or on a higher spec Kitchen / bathroom.
No idea what the others went for. The builder is doing his own marketing. There's no agent I can speak to and I'm not confident on knocking on doors!
The loose formula for new build houses is thirds, third of the price is for the land, a third for the build cost, a third for the builders profit.
The price will be on the land registry after 3 months so depends when they sold. You can access it a few ways, easiest is probably to use mouseprice. You'll need to register but it's free.
Always worth haggling if it's been on a while. He's a business man with no ties other than financial so shouldn't be offended
^ Combining the above information, it may be that for each month it remains unsold, he's losing a grand in interest on the build cost & land prices. As it tends to go quiet until Spring, find out what the others went for (LR enquiry - https://www.gov.uk/topic/land-registration/searches-fees-forms and/or commercial sites) and pitch your offer accordingly. Can't remember which thread had the "if you're not embarrassed with your first offer, it's too much" comment.
Some very off the mark replies up there. Thirds, no chance, not any more that ship sailed a long tome ago, builders not wanting to have money tied up, again depends on cash flow, we started a project 3 years ago 2 still for sale, won't be giving them away any time soon. If they are one offs it's hard to value but if there are similar in the area do your research, yes you pay a premium to be first in but don't need to be bent over.
Have a look on rightmove.co.uk or zoopla for sold house prices .
If you like the property and are in a position to buy it go for it. Friend of mine was in a similar situation last year with a house that had been on the market for a long time,after 2 weeks of submitting various offers someone came along and paid full asking price. Friend and his wife were devastated to loose out on the house.