ableNew build home discount

[Cogcog]

hThere was a thread back in 2008 about what discount may be achieved when buying new build and I was wondering what opinion/thought were 3 years on?

I have my eye on a conversion project being sold as new buld with NSBC and need about 12.5% discount to be able to buy, but they are already offering me part-ex to a about 35% of the new value so a discount of 12.5% would push the part ex to 40%. Also my Googling suggests the house was originally marketed originally at about 15% more than it is today.

So what discount can I reasonably expect to gte.

Background is that it is a nice development of just 5 houses. One was sold by the previous developer (the current developer bought the development when the original developer went busty in 2008). Up until 3 weeks ago all but one had been sol/reserved but now 3 are back on the market and the property I have in mind is the one which remains reserved but I hear it isabout to fall through. I think that helps may case?


(PS ignore the extra letetrs in the sthread titel, not sure wher that came from!).

Edited by Cogcog on Saturday 23 July 21:11

Edited by Cogcog on Saturday 23 July 21:11

[blueg33]

Find out when the developers financial year end is. If it is close negotiate hard if you can complete by year end.

I am not up to date with the average discount, but I doubt that developers mindset has changed much. I will ask some people on monday if they are not on holiday

[Cogcog]

blueg33 said:

Find out when the developers financial year end is. If it is close negotiate hard if you can complete by year end.

I am not up to date with the average discount, but I doubt that developers mindset has changed much. I will ask some people on monday if they are not on holiday

Thanks blueg. I had looked at the Companies House web site but they have 5 or 6 names, most seem to end in October, but a few are July. There is no cop,panies house no on their web site or paperwork (amazing how sloppy many businesses are about that requirement) From google and the trade press the developer arose in a few years ago from the ashes of a developer who went bust, but strangely has a very similar director team. As far as I can tell they have since made a bumper Y1 loss and were marginally in the black last year.

[blueg33]

PM me the developer and I may be able to confirm the YE.

[Cogcog]

Ok, got a call today from the developer to say that the plot I wanted is back on the market, their valuers are coming to value my part-ex next week.

Now I need advice on negotiating with the sales manager (who by chance is also the temporay sales director) to get my discount. I need at least 10% to make the move, ideally 15% or 20% with no other incentives.


I have done my background on the developers, got some broadly comparable properties which are cheaper to wave at her.



Things in my favour (I think):

All of the 'sold' plots have fallen through in a week, so they have gone from just trying to sell the show house to having 4 of the 5 plots to sell.
Mortgage shouldn't be an issue. They have -pre-qualified' me so they know I am ready to go.
I know the developers financial position: EOY November, lots of debt, almost half due to be paid this year.
I am willing to take the plot unfinished and do the finishing myself (flooring, decorating)
At the right price I could complete in 2 weeks
My part ex value is about 35% of the asking price of the new build

Things against me:
They dropped the asking price by 7% in March
I still have the part ex so I am not a totally cash buyer
Is the sales manager likely to play hardball being temporary sales director to make a good impression?

[blueg33]

The Sales Director will only have a small amount of discretion, it will have to go top the MD for more, so give them time to do that.

The 7% reduction in March was ages ago, they will be hurting if they have no sales, and selling one helps the others to go.

Its always a case of ask for more than you want then move a bit. If you cant get it all in a price reduction are there any extras you want such as carpets, landscaping in the garden etc. The extras look like small discounts to the developer. There must be some comp[arable evidence even if not exactly the same so go armed with that if you can find some.

Sorry I didnt reply to email, I am having some issues with BT mail servers

[Cogcog]

blueg33 said:

The Sales Director will only have a small amount of discretion, it will have to go top the MD for more, so give them time to do that.

The 7% reduction in March was ages ago, they will be hurting if they have no sales, and selling one helps the others to go.

Its always a case of ask for more than you want then move a bit. If you cant get it all in a price reduction are there any extras you want such as carpets, landscaping in the garden etc. The extras look like small discounts to the developer. There must be some comp[arable evidence even if not exactly the same so go armed with that if you can find some.

Sorry I didnt reply to email, I am having some issues with BT mail servers

No probs Blueg33, you have been more then helpful. E

xtras wise I am not sure there is much to ask for. The gardens have been lawned (well seeded last year), and flooring is mainly wood. I would rather have the discount so ican control, the quality of what is fitted but guess 200 Sq meters of wooden flooring fitted is worth having if the quality is good.