How much should you offer a developer for a new home?

Charlie-Bravo

I know a lot of people come on here looking for negotiation tactics when going to haggle on the price of a house. Your help is appreciated - so here's the scenario:

Mr & Mrs Smith are considering purchasing a new home. The developer is now offering a house at say €500k. The price has dropped from say €700k.

There is an allowance of €25k to complete out kitchens, tiling, wardrobes, fireplaces etc.

Has anybody got any experience of offering below asking price and based on the above information, should you use the allowances as leverage.

Also to be considered is that there may be corner sites available but at an extra charge of €20k.

I look forward to your comments, Astro.

jdivision

Offer what you think it's worth, the allowances might be handy but you're better off saving the money now rather than paying them off in the form of higher mortage repayments.

who what when

As someone who works in an architectural practice i know that there are serious bargains to be had. What i mean is it depends a lot on the developer and property. Take the following examples;

House 1- Part of a scheme of 24, of which 21 are sold. Built by a reasonably reputable small scale developer who so hasnt lost the shirt off his back in the down turn. Would be very lucky to get anywhere near 20% off the asking price.

House 2- Part of an estate of 85 houses of which 20 are sold. Built by a carpenter come massive builder. In serious debt with huge pressure coming from the bank. In some cases offers of 50% asking price are being accepted simply because of the presure the banks are putting on.

I suppose my point is to do your homework, if the price isnt right look around some more. There are serious bargains out there.
Personally if i was buying a house id ask myself what the 2007 asking price would have been then halve it. You may be told to fcuk off on a number of occasions but eventually someone will accept