How to bid on a New build with the builder...

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classychick

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New to askaboutmoney so hope I have the right page.

We viewed a show house in north county Dublin last May - houses priced at 500k reduced from 795k - At the time the EA wouldnt even consider offers of under 460k (we have approval and no chain with a large deposit).

I recently found out that there is still the same amount of houses for sale as last May. I contacted the EA and she put me in contact with the builder - we arranged to meet up with him tomorrow morning.

The area is perfect and the house is finished to a high standard even if the garden is on the small size.

Question is what would you suggest as a starting offer? A friend (small builder) said 346k?

Would like to hear your opinion........
 
Your friend is right, start around the €350k mark. You can always come back with a higher offer later.

The fact that all the houses are still available means they'll listen to all and every offer.
 
start low all they can say is no and if they do they mite came back with a counter offer that is agreeable to you both . let us know how it goes . best of luck
 
You need to totally ignore what the previous prices were. They were fake property bubble prices -- they have nothing to do with reality.

If I were you I would calculate what the house would sell for if it were the late 90's and offer that as my maximum price.
 
Do a bit of reasearch. Check the Companies Registration office to see how the business returns have been for the builder, the developer for the past couple fo years. Know as much as you can about who you are dealing with.

You may find that the builder is now only an intermediatiary between you and the bank who own the property. You can find out which bank owns the mortgage on the property through CRO.

Then ask how much they want for the house, how much they'll take and make an offer much lower than that. Depending on the pressure from the banks, their cash situation and a willingness to offload property ( more homes sold the easier it will be for them to clear the last few, more occupancy = more desireability) you could strike a pretty decent deal.
 
So we met up with the builder and had a look around the remaining houses - one really stood out with a good size sunny garden. kept are cards close to our chest re figures ect. He didnt mention any either. We waited until this week (not to sound so eagar) to ring and put in a figure (403k) but he shot it down...which I expected him to as its the 1st offer. I told him were in a strong position regarding no chain large deposit can close within 6 weeks...he asked me to come up and meet him to discuss figures.... God when we bought are first house 12 years ago it was a new build we just picked which house we wanted off the plans and that was it....all this bidding is new and difficult! So what now?
 
He shot it down! Then tell him to get lost and your taking your cash elsewhere. If I were you I would not even meet with the builder. Builders are in no position to shoot any reasonable offer down. There will be other dream houses. Wait for them and dont get into a bidding game with a builder. He is going to be far better at it than you. Walk away from any negotiations.
 
I think your right Lionstour, same amount of houses sitting empty as last May. We went to view another house today -(2nd hand) in a nice mature area with a big back sunny garden with potential to extend out and up. And as you said their will be other dream houses.............
 
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