Brand new house, discount potential, how much?
Discussion
The wife and i have been to veiw a house today, it is one of 5 or so remaining plots on a development of 25 properties, they still have 5 builds to complete and they starting building there a year ago. The property we veiwed is the last one of it's type on the development and they have an asking price of £299950-
After speaking to the sales advisor she told me that there is NOT any discounts availble but they will part exchange.(which i find hard to believe)
David Wilson/Barrets Homes are offering generous discounts, 100% part exchange on their builds and £1000 per month untill 2010, but this property is from a company called www.morrishomes.co.uk has anyone delt with this company or know anyone that has, if so what deal did you/they get and can i expect something similar?
I know it's a buyers market but how far do you think i can push them?
After speaking to the sales advisor she told me that there is NOT any discounts availble but they will part exchange.(which i find hard to believe)
David Wilson/Barrets Homes are offering generous discounts, 100% part exchange on their builds and £1000 per month untill 2010, but this property is from a company called www.morrishomes.co.uk has anyone delt with this company or know anyone that has, if so what deal did you/they get and can i expect something similar?
I know it's a buyers market but how far do you think i can push them?
For a new build I'd be looking for a MINIMUM discount of 30% from thier published prices, provided they arent hopelessly over-valued.
A lot depends on the area and the exclusivity of the development, if it was around my way where its exclusively "chocholate box" houses and there is no shortage of them I'd probably start the negotiation at around 50% with a view to heading back to 30%.
Dont forget, if you're looking to buy YOU hold ALL the cards right now.
ETA I just looked at the website and see you're in the North West,
Not sure how things have been priced up there but around here stuff is generally 20-30% over priced by all the developers (even when things were "better") and they would offer all kinds of part exchange/deposit paid/stamp duty paid/etc... deals to get punters to sign... If you're buying cash you can smash them up on price a great deal.
A lot depends on the area and the exclusivity of the development, if it was around my way where its exclusively "chocholate box" houses and there is no shortage of them I'd probably start the negotiation at around 50% with a view to heading back to 30%.
Dont forget, if you're looking to buy YOU hold ALL the cards right now.
ETA I just looked at the website and see you're in the North West,
Not sure how things have been priced up there but around here stuff is generally 20-30% over priced by all the developers (even when things were "better") and they would offer all kinds of part exchange/deposit paid/stamp duty paid/etc... deals to get punters to sign... If you're buying cash you can smash them up on price a great deal.
Edited by davido140 on Sunday 19th October 19:47
Edited by davido140 on Sunday 19th October 19:48
davido140 said:
For a new build I'd be looking for a MINIMUM discount of 30% from thier published prices, provided they arent hopelessly over-valued.
A lot depends on the area and the exclusivity of the development, if it was around my way where its exclusively "chocholate box" houses and there is no shortage of them I'd probably start the negotiation at around 50% with a view to heading back to 30%.
Dont forget, if you're looking to buy YOU hold ALL the cards right now.
ETA I just looked at the website and see you're in the North West,
Not sure how things have been priced up there but around here stuff is generally 20-30% over priced by all the developers (even when things were "better") and they would offer all kinds of part exchange/deposit paid/stamp duty paid/etc... deals to get punters to sign... If you're buying cash you can smash them up on price a great deal.
Firstly thanks for your input, the property is based in the midlands (Leicestershire) un fortunatly i'm not a cash punter, but do you think i could still push them into a good bargain, my gut feeling was to offer £250k do you think there is a better deal to be had?A lot depends on the area and the exclusivity of the development, if it was around my way where its exclusively "chocholate box" houses and there is no shortage of them I'd probably start the negotiation at around 50% with a view to heading back to 30%.
Dont forget, if you're looking to buy YOU hold ALL the cards right now.
ETA I just looked at the website and see you're in the North West,
Not sure how things have been priced up there but around here stuff is generally 20-30% over priced by all the developers (even when things were "better") and they would offer all kinds of part exchange/deposit paid/stamp duty paid/etc... deals to get punters to sign... If you're buying cash you can smash them up on price a great deal.
Edited by davido140 on Sunday 19th October 19:47
Edited by davido140 on Sunday 19th October 19:48
Maxf said:
Offer them 200k and agree to sign an agreement not to spill the beans on the price drop (not sure if this is possible on house purchases).
If they aren't offering discounts then they are either a)cheap already, b)lying or c)not much longer for the business world - IMO of course
I agree with you, i think the sales advisor was just talking sIf they aren't offering discounts then they are either a)cheap already, b)lying or c)not much longer for the business world - IMO of course
te, she spent more time trying to impress me with her 30 years experience selling David Wilson homes and trying to put me off a similar development by them 10 miles up the road, rather than telling me what i wanted to hear.
Deva Link said:
Some slightly absurd comments here.
If they've already sold 20 out of 25 and the one you want is the last of its type, then why the heck would they want to give it away?
That was my feeling as well but I would still go in very low and see what happens due to the current conditions.If they've already sold 20 out of 25 and the one you want is the last of its type, then why the heck would they want to give it away?
Sam_68 said:
Similar thread here.
I really can't be bothered to debate it all again, other than to say that as someone who is in the business and has a full knowledge or the economics of the game, there really is some prize bks spouted at times on this subject... 
Interesting, i'm sorry to ask you to repeat anything you may have said before Sam, but in your opinion what would your gut feeling be as to what discount i could expect and could i negociate all the fees etc.. with them?I really can't be bothered to debate it all again, other than to say that as someone who is in the business and has a full knowledge or the economics of the game, there really is some prize b
ks spouted at times on this subject... Thanks in advance.
Read the linked thread... there really are too many factors involved to be able to simply say 'they will accept XX% offer'. The answer is 'it depends'. 
The sorts of figures being bandied about by many people would represent a significant loss to the builder, and mobody is in buisness to make a loss. Most developers have already re-aligned their prices to take account of current market conditions.
Also, be aware that if you are into serious negotiations with a housebuilder, they will be checking you out by now, if they have a competent sales team. That means they will be checking out your creditworthyness and mortgage status, and almost certainly sharing information with estate agents and sales negotiators of other housebuilders in the area. You can do your credibility (and consequently your negotiating powers) a lot of damage, if you are maked down as a timewaster or a pi55-taker.
Finally... if any developer is desperate enough to accept the sorts of offers being suggested by some posters, you don't want to buy a house from them. They are probably about to go bust, and the sorts of corners they'll be cutting on construction quality don't bear thinking about. In theory, they may be backed up by an NHBC or Zurich warranty. In practice, you'll be opening yourself up to a whole world of misery.
The sorts of figures being bandied about by many people would represent a significant loss to the builder, and mobody is in buisness to make a loss. Most developers have already re-aligned their prices to take account of current market conditions.
Also, be aware that if you are into serious negotiations with a housebuilder, they will be checking you out by now, if they have a competent sales team. That means they will be checking out your creditworthyness and mortgage status, and almost certainly sharing information with estate agents and sales negotiators of other housebuilders in the area. You can do your credibility (and consequently your negotiating powers) a lot of damage, if you are maked down as a timewaster or a pi55-taker.
Finally... if any developer is desperate enough to accept the sorts of offers being suggested by some posters, you don't want to buy a house from them. They are probably about to go bust, and the sorts of corners they'll be cutting on construction quality don't bear thinking about. In theory, they may be backed up by an NHBC or Zurich warranty. In practice, you'll be opening yourself up to a whole world of misery.
Edited by Sam_68 on Sunday 19th October 20:34
jas xjr said:
if they have already sold the majority of the plots surely the best locations on the site have gone?
that has to be worth some discount?and will all those who have placed a deposit be able to complete?
Yes, for sure. And anyone who is not negotiating a decent discount in the current market is nuts (though it does happen - we had someone walk into one of our sales offices a couple of weeks ago and buy a house at full asking price with no attempt at negotiation... the sales person involved is still recovering from the shock!).that has to be worth some discount?and will all those who have placed a deposit be able to complete?
But to suggest a £100k/33% discount as an opening gambit is equally nuts. You'll just be marked down as a timewaster and a chancer.
jas xjr said:
if they have already sold the majority of the plots surely the best locations on the site have gone?
that has to be worth some discount?and will all those who have placed a deposit be able to complete?
Not all the plots get released at the same time, usually 10 plots (etc) get released for sale at once, so the OP could be trying to reserve one of the better plots on the site.that has to be worth some discount?and will all those who have placed a deposit be able to complete?
If you want to reserve a plot that hasn't been released they won't let you unless they're very desperate as it screws up the build programme for the site, (groundworks, services,roads,paths etc that would need doing). Not to mention the plots around this one that would still be at slab level (or less) with this one complete.
To the OP is this site in Congerstone?
Sam_68 said:
Read the linked thread... there really are too many factors involved to be able to simply say 'they will accept XX% offer'. The answer is 'it depends'.
The sorts of figures being bandied about by many people would represent a significant loss to the builder, and mobody is in buisness to make a loss. Most developers have already re-aligned their prices to take account of current market conditions.
Also, be aware that if you are into serious negotiations with a housebuilder, they will be checking you out by now, if they have a competent sales team. That means they will be checking out your creditworthyness and mortgage status, and almost certainly sharing information with estate agents and sales negotiators of other housebuilders in the area. You can do your credibility (and consequently your negotiating powers) a lot of damage, if you are maked down as a timewaster or a pi55-taker.
Finally... if any developer is desperate enough to accept the sorts of offers being suggested by some posters, you don't want to buy a house from them. They are probably about to go bust, and the sorts of corners they'll be cutting on construction quality don't bear thinking about. In theory, they may be backed up by an NHBC or Zurich warranty. In practice, you'll be opening yourself up to a whole world of misery.
Taylor-Wimpey, the largest or were at least the largest UK housebuilder, are reportedly trying to gain market share by discounting prices to even below the break-even price.The sorts of figures being bandied about by many people would represent a significant loss to the builder, and mobody is in buisness to make a loss. Most developers have already re-aligned their prices to take account of current market conditions.
Also, be aware that if you are into serious negotiations with a housebuilder, they will be checking you out by now, if they have a competent sales team. That means they will be checking out your creditworthyness and mortgage status, and almost certainly sharing information with estate agents and sales negotiators of other housebuilders in the area. You can do your credibility (and consequently your negotiating powers) a lot of damage, if you are maked down as a timewaster or a pi55-taker.
Finally... if any developer is desperate enough to accept the sorts of offers being suggested by some posters, you don't want to buy a house from them. They are probably about to go bust, and the sorts of corners they'll be cutting on construction quality don't bear thinking about. In theory, they may be backed up by an NHBC or Zurich warranty. In practice, you'll be opening yourself up to a whole world of misery.
Edited by Sam_68 on Sunday 19th October 20:34
http://www.ft.com/cms/s/0/dd797e28-9c81-11dd-a42e-...
In this market some developers will accept the kind of offers being suggested on this thread.
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