Show house purchase premium

jcb1986

I realise there are several factors to take account of here, but is a 40k markup extortionate on a show house or the going rate? 1600 sq foot. Like 25k would probably go a long way in doing up a non show-house new build you'd think.

Also i wonder will they take an offer below asking for the contents or will they presume someone will eventually pay the overall asking price considering the market , HTB incentive etc

Dav010

Benefit of buying the SH is that it is turn key and ready to move into today. A lot of developers use interior designers for the SH and the furniture/fittings/kitchen are usually good stuff because they want to showcase the house at its best. Down side is you are buying someone else’s idea of how it should look.

Cost wise, €40k would probably go a long way on a 1600 sqft house, but you will not just have the cost, you will also have the extra time & hassle of going around looking at stuff to buy then have to get tradesmen to fit taps/ware/paint/wallpaper etc.
When you add up all the costs of moving into a house bought in “builders finish” condition, depending on the spec you want, you might save a bit on 40k, but it might not be as much as 15k.

I suppose it comes down to if you really like the SH, personally I’ve never bought one and wouldn’t, my wife loves doing that kinda stuff. But you can be absolutely certain that someone else will buy it, the turn key condition will appeal to many.

Heres Johnny

40k big money as I found show houses to be quite sparsely furnished to give the impression of space, there's not a huge amount in them.
For my house purchase, the show house was 20k extra. But the beds were 4 ft 6 where I wanted 5ft. The couch was quite small too. Mine had fitted kitchens and all appliances anyway, so if you are getting these I don't know where you're going to get value in 40k. I couldn't see it in 20k.

antiskeptic

The showhouse gets the builders top tradesmen into to build it. Every other house is, comparatively speaking, thrown up. If you buy non show there'll be a lot less to it, aside from the surface finishes. Overall finish in carpentry, tiling, plasterwork, plumbing, electrics is more likely to be top class in a showhouse.

dudara

As said before, the big issue for me would be the fact that I was buying some one else's vision and taste. I just wouldn't be into that. We viewed lots of houses over the summer that had been recently done up and it just didn't work for me. I'd only have ripped it all out in a few years, so I didn't want to pay the premium that sellers were looking for.

For other buyers though, that might be the perfect way to buy. It all depends if you feel the quality and finish of the fit-out, and the cost of the time saving, is worth it.

antiskeptic

Vision is probably a bit too lofty a word for an Irish showhouse staging.

Dizzyblonde

I knew a couple who paid a premium for a showhouse in the late 80s. When they moved in they found that the curtains didn't fully close and the cooker and washing machine were German and had no instructions in English. Standards are probably higher nowadays but it's at least worth checking stuff like that.

fret_wimp2

Benefits of show house:
-top quality finish. That finish is very difficult to get when your doing it in bits here and there, trying to save money.

-high quality furniture, in the show house in our development we learned they had the sofas and beds made to measure so they looked and fitted the rooms perfectly.

-You get mirrors and fittings that are currently in vogue.

-You have a house that you can start living in Straight away. With a builders finish you may still need floors, carpet, painting, furniture all of which takes weeks or months.

Cons
-You get someone else's taste and style.
-Often it's form over function.
As it's furnished by an interior designer usually with expensive on trend pieces, it's going to command a premium.

Weather that premium cost is worth it is up to the buyer.

awec

antiskeptic wrote: »

The showhouse gets the builders top tradesmen into to build it. Every other house is, comparatively speaking, thrown up. If you buy non show there'll be a lot less to it, aside from the surface finishes. Overall finish in carpentry, tiling, plasterwork, plumbing, electrics is more likely to be top class in a showhouse.

This is nonsense.

More likely than not the show house will have the exact same trades people doing it as every other house.

q85dw7osi4lebg

Might be a bit ott but 40k ish is the going rate from my experience.

Just did up a 1600 sq ft new build and the basic fitout cost 30k so it's not extortion really (flooring, appliances, blinds, tiling, furniture etc)

Depends what your time is worth.

awec

OP, one thing to consider is that a show house can sometimes be the first house of that type to be built by the builder, so it's kind of the guinea pig.

I know in our development they made changes to subsequent houses based on some issues (that were minor, really) that they found with the design of the showhouse while finishing it off. Things like radiators and sockets in annoying locations that they ended up putting elsewhere in later builds.

Also, it would depend on how many times it has been used as a showhouse, and how often it has had people walking through it with dirty feet etc.

Other than that, I'd have no real hesitation buying a show house if you felt the price was right and the furniture and decor was to your taste.

In terms of 25k, it wouldn't go as far as you think.

stevenmu

I looked at a showhouse recently which had a similar 40k markup. It looked lovely at first glance,but when you looked at it in more detail there were some issues apparent. The downstairs floor was laminate, nice laminate but still laminate. 40k can buy a lot of nice hardwood / engineered wood flooring. The carpet on the stairs and landings (3 storey house) were showing signs of wear already, so probably not very high quality. The sofas and chairs looked lovely, and were comfy to sit in for a minute or two, but not the type of thing you would throw down in for a long Netflix binge, so they'd probably get replaced too. And there was signs of water staining under the radiator in the main bedroom, maybe someone was flushing the rad and some water leaked,but would need to be checked carefully.

I think it could easily have been done nicer,and to your own taste for 20k/25k. It definitely didn't feel worth the 40k premium.

wassie

awec wrote: »

This is nonsense.

More likely than not the show house will have the exact same trades people doing it as every other house.

Agreed. Same tradesmen used in throughtout the rest of the estate.
Don't confuse nice shiny 'things' on the surface as being equal to a quality build - often the real quality lies in the things you cant see.

40K is a premium regardless for a typical estate.

jcb1986

Thanks all for responses. Yeah its a tough one, ill be going through the house with a fine comb. Problem I face is if I don't pull trigger someone else easily could very soon from my experiences with other new builds in the area.

Really want the house for the location, the size, the fact it is a new build but would have liked my own personal touch on the place and am luke warm on the contents. Finding a non-showhouse with my current locational requirements is proving impossible unfortunately. Was in a draw of a hat for a cancellation on a non-showhouse last week with 3-4 other parties, someone else got it.

awec

If you like the location and the size, and you can afford it then go for it IMO.

The stuff inside is all superficial. You can get rid of the furniture in a few years and redecorate.

jcb1986

awec wrote: »

If you like the location and the size, and you can afford it then go for it IMO.

The stuff inside is all superficial. You can get rid of the furniture in a few years and redecorate.

Yeah youre right, although the cash to pay for contents aint superficial . EA is saying its "30ish" for contents now, i.e. "the house is worth more than what i originally said", hard to get a bloody straight answer.

witchgirl26

I'd look at what exactly are you getting for the increased price. The showhouses in my estate just went up for sale, however they didn't include any furniture at all in them - just the kitchen fittings, white goods and flooring. The furniture had been rented out for the duration of showing the houses. Now the price difference does reflect this but still.
We spent quite an amount just getting flooring, white goods, a sofa and a bed into our new house which wasn't easy after using the majority of our savings to buy the actual building. The benefit of a showhouse is that you can often borrow the extra amount as part of your mortgage as opposed to having to have that saved also.