How much would you offer?

[eshaq786]

Hi everyone

First post here. Helpful website for people buying new builds.

I have been looking at a Miller Homes new build property in Birmingham at the site of Northcote in Erdington. I have my eye on a plot called sheldon which is plot 104, a 3 bedroom end terrace. Please google miller homes northcote for more details.

Although the website say the property is unreleased, I have been down to the site and viewed the house. It is complete and is listed at £163000.

Now I want to find out from everyone what they would offer in the below two situations:

1) You have saved up 5% deposit and will be using miller homes deposit match scheme to raise the full 10% deposit to for a mortgage.

2) You have £66000 to put down as a deposit which you have raised by remortgaging another freehold property that you have (not sure if miller homes need to know about this or not). You are not using any other scheme and are just going in with an offer.

What would everyone offer in each of those situations, what would your initial offer be, what would be your maximum and what if any extras would you expect?

Thanks in advance.

[Adam Long]

Firstly, it it is fully finished it's a stock plot and therefore costing the builder money by being empty so they will be motivated to sell the plot. Does it have flooring and carpets fitted as this is a good sign that they are getting desperate ?

A friend of mine works as a site agent for a builder and she tells me:

1) You are unlikely to get much off the price as they are already taking off 5% and they are generally not allowed to give more than 1 incentive on a single plot. Try an offer of £150k and see what happens.
2) The builder does not care where your deposit comes from all they need to know is that you have the ability to get a mortgage as that makes you unlike 80% of the people who wander through the showhome every day. Get proof of your mortgage offer to show them that you are a serious buyer. I would start the bidding at £140k and ask them to out it forwards for consideration as they will have to to refer it higher. They will probably come back with a no but say that you will leave the offer on the table and leave them a cheque for the reservation amount which they can cash if they agree. After that it's down to your negotiation skills.

Good luck !

[eshaq786]

The house does have carpets and flooring throughout and it has been on sale for a few months now which is why I am thinking that they would seriously consider an offer. But my concern was would they consider an offer as well as the deposit match scheme?

[Adam Long]

The more stock plots (completed but not sold) a builder has the more flexible they will be also they are more flexible at their year end and half year as the banks who lent the money to them (and their shareholders) expect good results. Miller Homes year end and Half year are December and June respectively.

Any deal you ask for in conjuction with the deposit match scheme would be less than without it.

BUT DON'T FORGET YOU CAN GO UP WITH AN OFFER BUT ITS HARD TO GO DOWN !!!

[Walker Fox]

I would agree with everything that Adam has said so far.

You could also try speaking to the Area/Regional Sales Manager at the local office, explain that you are in a strong position etc. and would like to move quickly.

As Adam said, timing is often crucial, even towards the end of a (non reporting) month may help.

[juliettelixora]

the more assets or things that can be considered/ converted to cash would make the offer go up. And also the labor/effort of the builder is a different scenario. Just keep negotiating until both parties can agree on the terms were both can benefit.

[New Homes Expert]

First thing to consider is that this is a stock plot.

Miller are a private company and do not report to the City and do not have publicly traded shares. So their end of year figures are of less importance as they do not need to sell just for the annual report.

That said you may be able to get something off the asking price as all sales staff have what is called "negotiables". This may be in the form of "free" extras or a stright discount.

If you are in a strong financial postion to buy then you will be able to get the best discount. If you use one of their incentive schemes for aa deposit you will have to pay the asking price.

Finally Miller are one of the better house builders for quality, winning more NHBC awards as a proportion of the toatl homes thye build than any other national builder.