New builds - any tips on gaining discounts
Discussion
We're considering a new build property with david Wilson on a large new estate near us. It's a 4 bed detached they have up for 310k, which in comparison to 'used' homes around here of a similar size is quite expensive. Especially as we just missed out on a perfect used house of a similar size that was up last year at 320, reduced to 270 this year and sold 2 weeks ago for 250k.
After a brief chat the sales people stated the lowest they would come down to is 298k, does anyone have any tips on how to negotiate on these? (house is currently foundations only) Ideally we'd like to get it for 250 to save on the 3% stamp and also bring it in line with similar size 2nd hand homes that are up for 270 - 280 (no-one will pay 270).
I seem to remember PHer DaveST220 managed to get a new build down from 320k to the magic 250 so I know it can be done.
Any tips, suggestions, experiences welcomed
After a brief chat the sales people stated the lowest they would come down to is 298k, does anyone have any tips on how to negotiate on these? (house is currently foundations only) Ideally we'd like to get it for 250 to save on the 3% stamp and also bring it in line with similar size 2nd hand homes that are up for 270 - 280 (no-one will pay 270).
I seem to remember PHer DaveST220 managed to get a new build down from 320k to the magic 250 so I know it can be done.
Any tips, suggestions, experiences welcomed
I'd say the best advice is be prepared to walk, and let them know it too. I'm just about to exchange on a little new build that was originally up for £180k, that I eventually got for £130k, including a few optional extras thrown in too.
It also pays to keep an eye on the development and amount of traffic they're getting through the sales office. If they're busier, and the development's in a prime location, then they'll feel more confident of finding an alternative buyer and not going so low. On the other hand, no traffic means the pressure is all on them. You could try telling them that £250k is your only offer and understand that they don't want to go that low, but are willing for them to have your details, in case they change their mind.
It also pays to keep an eye on the development and amount of traffic they're getting through the sales office. If they're busier, and the development's in a prime location, then they'll feel more confident of finding an alternative buyer and not going so low. On the other hand, no traffic means the pressure is all on them. You could try telling them that £250k is your only offer and understand that they don't want to go that low, but are willing for them to have your details, in case they change their mind.
Thanks guys, sounds like some good experiences and that discounts are possible.
When we spoke to the sales office they stated a showhome (slightly smaller than the one we're looking at) was up for 289 and sold at 276 so whether this means we'll be pushing our luck I don't know but we'll give it a try. We've sussed the local competition and spoken to a couple of agents who believe 310 is too high and will see wat happens - worst is they say no.
They did give us the usual "we shouldn't tell you this but" line that they're absolute bottom line was 298 and they'd have nothing else to play with after that though I personally believe that to be b
ks!
When we spoke to the sales office they stated a showhome (slightly smaller than the one we're looking at) was up for 289 and sold at 276 so whether this means we'll be pushing our luck I don't know but we'll give it a try. We've sussed the local competition and spoken to a couple of agents who believe 310 is too high and will see wat happens - worst is they say no.
They did give us the usual "we shouldn't tell you this but" line that they're absolute bottom line was 298 and they'd have nothing else to play with after that though I personally believe that to be b
ks!I'd have thought it is the same as if you were buying a 'normal' (i.e. not new-build) place; you offer an amount of money, they accept or decline it.
As with all other purchases, being prepared to walk away is the best position to take. And let them know it. Don't appear too keen, don't gush on about how 'perfect' it is in front of them, keep your eye on the local market.
If they don't have any better offers, and need to sell it, your offer will be accepted. If there are lots of other people offering more than you then you won't end up being the buyer. Market forces, you may say ...
Oli.
As with all other purchases, being prepared to walk away is the best position to take. And let them know it. Don't appear too keen, don't gush on about how 'perfect' it is in front of them, keep your eye on the local market.
If they don't have any better offers, and need to sell it, your offer will be accepted. If there are lots of other people offering more than you then you won't end up being the buyer. Market forces, you may say ...
Oli.
Seriously think about buying a new build. There are "hidden" costs...
1) There will be no garden. Not - some garden but a bit st - no. Just NO garden. Gardens are expensive.
2) No shed.
3) No interior fittings, bog roll holders, curtain poles or rails, or carpets.
etc
To give you an idea. We moved into a new house. First we gave Gordon Brown £11K. Then we did £11K in a month - just on stuff to make the house liveable in.
Then we build a conservatory. Then we landscaped the garden.
Ouch.
1) There will be no garden. Not - some garden but a bit s
t - no. Just NO garden. Gardens are expensive.2) No shed.
3) No interior fittings, bog roll holders, curtain poles or rails, or carpets.
etc
To give you an idea. We moved into a new house. First we gave Gordon Brown £11K. Then we did £11K in a month - just on stuff to make the house liveable in.
Then we build a conservatory. Then we landscaped the garden.
Ouch.
zcacogp said:
I'd have thought it is the same as if you were buying a 'normal' (i.e. not new-build) place; you offer an amount of money, they accept or decline it.
As with all other purchases, being prepared to walk away is the best position to take. And let them know it. Don't appear too keen, don't gush on about how 'perfect' it is in front of them, keep your eye on the local market.
If they don't have any better offers, and need to sell it, your offer will be accepted. If there are lots of other people offering more than you then you won't end up being the buyer. Market forces, you may say ...
Oli.
I'd say this is about as spot on as it gets. Our first offer on the house was £330k which they rejected. A month later we offered £320k which they rejected. A month after that, we offered £300k which they accepted immediately and subsequently dropped another £1k when our buyer wanted to do the same. As with all other purchases, being prepared to walk away is the best position to take. And let them know it. Don't appear too keen, don't gush on about how 'perfect' it is in front of them, keep your eye on the local market.
If they don't have any better offers, and need to sell it, your offer will be accepted. If there are lots of other people offering more than you then you won't end up being the buyer. Market forces, you may say ...
Oli.
mrmaggit said:
Be prepared to walk, and do so.
If you have that sort of money lying around, have you considered self-build?
Yep. Here's the small version,walk in near Christmas.........If you have that sort of money lying around, have you considered self-build?
"i like that one, how much?"
"£335K"
"sod that! I'll give you 250K amd buy options on top"
"if you had a suitcase with £250k in it now they would reject it"
"ok"
weeks later..........
"Here's my formal offer, our house is sold & we can move as soon as it's built"
"ok, i'll see wht i can do"
(first offer was even lower!!)
"sorry, it's been rejected, blah blah blah"
"ok, my final offer is £250K"
20 mins later.............
"offer accepted!"
Deal done.
Don said:
Seriously think about buying a new build. There are "hidden" costs...
1) There will be no garden. Not - some garden but a bit st - no. Just NO garden. Gardens are expensive.
2) No shed.
3) No interior fittings, bog roll holders, curtain poles or rails, or carpets.
etc
To give you an idea. We moved into a new house. First we gave Gordon Brown £11K. Then we did £11K in a month - just on stuff to make the house liveable in.
Then we build a conservatory. Then we landscaped the garden.
Ouch.
No garden? Ours has a very large garden for a new build IMO.1) There will be no garden. Not - some garden but a bit s
t - no. Just NO garden. Gardens are expensive.2) No shed.
3) No interior fittings, bog roll holders, curtain poles or rails, or carpets.
etc
To give you an idea. We moved into a new house. First we gave Gordon Brown £11K. Then we did £11K in a month - just on stuff to make the house liveable in.
Then we build a conservatory. Then we landscaped the garden.
Ouch.
No shed? All on the development have one.
No fittings? Granted, but that is why you buy new-to do what YOU want to it, keep that in mind when making your offer and you will get it how you like for what you wanted to pay in total.
It's a bit like buying a car, are you hapopy with a base model or do you look at the options? We've spent £15k on options-that was always the plan however.
Dave_ST220 said:
No garden? Ours has a very large garden for a new build IMO.
Yes. But is it landscaped already or will you need to do it? When we last moved (to a new build) the whole point was to have a garden the wife could develop from a clean slate. This is nice if you want it. If you don't it is simply a lot of expense to have an outdoor area you are prepared to live with...Dave_ST220 said:
No shed? All on the development have one.
Wow. House builders really must be up st creek without a paddle if they are now giving away sheds! Nice one. We, of course, ended up blowing a couple of K on a nicely built base and a (admittedly Hoooooooge) shed to go on it.Dave_ST220 said:
No fittings? Granted, but that is why you buy new-to do what YOU want to it, keep that in mind when making your offer and you will get it how you like for what you wanted to pay in total.
It's a bit like buying a car, are you hapopy with a base model or do you look at the options? We've spent £15k on options-that was always the plan however.
Yep we blew £10K on "options" too. I wasn't quite expecting that.It's a bit like buying a car, are you hapopy with a base model or do you look at the options? We've spent £15k on options-that was always the plan however.
This cost of moving in in sheer cash was pretty much £30K! As we didn't want the mortgage to go up ridiculously we only took £10K of equity out to pay the stamp duty - we found the rest from savings.
So. If you are well up on all the costs you will incur - some of which you could defer or avoid altogether if you were not buying a new build - and are ready to pay for what you want: good luck to you!
On balance I have enjoyed the experience of taking a new build property and getting it properly developed and liveable in. But never again.
Don said:
Seriously think about buying a new build. There are "hidden" costs...
1) There will be no garden. Not - some garden but a bit st - no. Just NO garden. Gardens are expensive.
2) No shed.
3) No interior fittings, bog roll holders, curtain poles or rails, or carpets.
etc
To give you an idea. We moved into a new house. First we gave Gordon Brown £11K. Then we did £11K in a month - just on stuff to make the house liveable in.
Then we build a conservatory. Then we landscaped the garden.
Ouch.
Thanks for the info but we know what we are in for. Our current house we bought off plan so are fully aware of what does/doesn't get included. TBH though many 2nd hand homes will have far more work to carry out.1) There will be no garden. Not - some garden but a bit s
t - no. Just NO garden. Gardens are expensive.2) No shed.
3) No interior fittings, bog roll holders, curtain poles or rails, or carpets.
etc
To give you an idea. We moved into a new house. First we gave Gordon Brown £11K. Then we did £11K in a month - just on stuff to make the house liveable in.
Then we build a conservatory. Then we landscaped the garden.
Ouch.
I suspect you are talking of the 'larger' builders, as these do tend to somewhat sting you on extras.
You should but off the smaller builders who don't have the advertising/marketing budgets of the larger companies and as such rely on quality and providing an excellent specification to begin with.
You should but off the smaller builders who don't have the advertising/marketing budgets of the larger companies and as such rely on quality and providing an excellent specification to begin with.
Zippee said:
After a brief chat the sales people stated the lowest they would come down to is 298k, does anyone have any tips on how to negotiate on these?
Zippee said:
(house is currently foundations only)
How is the market generally where you are? In our Cheshire village there's a lot of sold signs now. I would imagine that as this is the time of year when people traditionally think about moving then the developers would want to see how things go running into the summer.
I agree, if it is foundations only then almost certainly the site will be on stop or slowed right down anyway. We bought build complete, no choices on spec, carpets etc, we got what was there, which was fine considering the discount, and the builder released £300k of clear profit without having to do anything (well, until I sent them the snagging list anyway 
)
I don't see how it is in their interest to take a low bid and then pay out money building the house, especially when the deal could fall through anyway.
)I don't see how it is in their interest to take a low bid and then pay out money building the house, especially when the deal could fall through anyway.
Hobo said:
I suspect you are talking of the 'larger' builders, as these do tend to somewhat sting you on extras.
You should but off the smaller builders who don't have the advertising/marketing budgets of the larger companies and as such rely on quality and providing an excellent specification to begin with.
Yep-& you will pay for it! We looked at a small time builders house at the same time-they think a fancy cooker etc means they can ask a premium-£35k more for a MUCH smaller house. The new house we have gone for has AEG appliances which IMO are pefectly good.You should but off the smaller builders who don't have the advertising/marketing budgets of the larger companies and as such rely on quality and providing an excellent specification to begin with.
ETA-this development has had a shed & water butt as standard from day 1-part of the planning deal with the council. Our total costs on top of the house price is £33k. If you buy s/h you can easily spend the £15k you would have spent on options on a new build getting it how you want it. Swings & roundabouts
Edited by Dave_ST220 on Wednesday 29th April 11:08
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