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Allowances

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  • 14-11-2011 11:11pm
    #1
    BlueIsland
    Registered Users Posts: 487 ✭✭


    Can somebody explain to me have I got the following right? Partner and I made an offer on a property for 200,000 (asking 250,000)... The estate agent came back and said the developer will give you a "turn key" house for 235,000. Not gonna pay that much in current market. Now the estate agent was explaining allowances and saying that a lot of people do houses room by room and that. This is something which would interest me more than letting the developer off to put flooring, kitchen etc in house. So we estimate the allowances comes to about 10,000.
    We are gonna offer 212,000 with 10,000 allowances to be sorted on closing. Does the developer pay us the 10,000 on closing to add to our savings to decorate our new home?
    Thanks


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    #2
    Victor
    Registered Users Posts: 78,400 ✭✭✭✭Victor


    Not quite. The builder is saying that they have included €10,000 for features XYZ.

    Let us say €5,000 of that is for a fitted kitchen. If you fit a kitchen worth €100,000, you need to pay the builder an extra €95,000. If you spend nothing, you get the €5,000 back (this may be difficult).

    The best way to proceed would be for you to decide exactly what you want and ask for actual prices for the builder to do each of X, Y & Z. Get the builder to put a fixed price on these and decide on which items you want to proceed with. Then come up with a fixed price for everything.


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    #3
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    to be honest I think you might be better on trying to renegotiate the turnkey price.
    if will save you alot of hassle, and with the builder having contacts will most likely be able to get the work complete for less than you will be quoted if getting it done yourself.


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    #4
    iarnroid
    Closed Accounts Posts: 1 ✭iarnroid


    BlueIsland wrote: »
    Can somebody explain to me have I got the following right? Partner and I made an offer on a property for 200,000 (asking 250,000)... The estate agent came back and said the developer will give you a "turn key" house for 235,000. Not gonna pay that much in current market. Now the estate agent was explaining allowances and saying that a lot of people do houses room by room and that. This is something which would interest me more than letting the developer off to put flooring, kitchen etc in house. So we estimate the allowances comes to about 10,000.
    We are gonna offer 212,000 with 10,000 allowances to be sorted on closing. Does the developer pay us the 10,000 on closing to add to our savings to decorate our new home?
    Thanks

    Im new to this and hope to buy a house in the next year,Would you not think of holding off and get a better price off your builder in the new year


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