Buying our first home...
Discussion
Well, the time has come to start taking house hunting seriously! Our money for deposit is available in late November as we have it in a bond and we have some more in savings and an ISA.
We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
Donatello said:
Well, the time has come to start taking house hunting seriously! Our money for deposit is available in late November as we have it in a bond and we have some more in savings and an ISA.
We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
...and you were doing oh so well ...We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
Donatello said:
Well, the time has come to start taking house hunting seriously! Our money for deposit is available in late November as we have it in a bond and we have some more in savings and an ISA.
We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
I've just bought my first place, and its a new build too.We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
In terms of discount, you wont get any if its a 'wanted' property. e.g. in between reserving mine, and putting the money down, she had 50+ calls about it. If its an established builder, you will however, be eligable for any first time buyer schemes - 5% towards deposits, legal fees, etc etc. So your statement about no emotional attachment is true, if you wont pay the asking price, then the next person will.
The 'extras' is where you can try and haggle. But most new builds are in demand so you wont really get much IME.
HTH.
garylythgoe said:
I've just bought my first place, and its a new build too.
In terms of discount, you wont get any if its a 'wanted' property. e.g. in between reserving mine, and putting the money down, she had 50+ calls about it. If its an established builder, you will however, be eligable for any first time buyer schemes - 5% towards deposits, legal fees, etc etc. So your statement about no emotional attachment is true, if you wont pay the asking price, then the next person will.
The 'extras' is where you can try and haggle. But most new builds are in demand so you wont really get much IME.
HTH.
My experience is the same as above.In terms of discount, you wont get any if its a 'wanted' property. e.g. in between reserving mine, and putting the money down, she had 50+ calls about it. If its an established builder, you will however, be eligable for any first time buyer schemes - 5% towards deposits, legal fees, etc etc. So your statement about no emotional attachment is true, if you wont pay the asking price, then the next person will.
The 'extras' is where you can try and haggle. But most new builds are in demand so you wont really get much IME.
HTH.
I've bought new builds twice, both some years ago now. In both instances they would not entertain any negotiation on price but as said above extras were there for the taking - carpets, curtains and turf for front and back gardens were both included when we asked.
A lot of new builds have jack all outside space. It wasn't an issue, as we bought in London, where nowhere has any outdoor space, but I have friends who live in the country.
After weeping gently at how much they got for so little, I realised why they bought an ex-council house from the 1960's. The have a front garden bigger than most new builds have in total, and almost a small field at the back.
It depends on your priorities, area, and DIY-ability of course, but don't write anything off until you've seen it with an open mind.
Enjoy viewing stuff. Once your offer is accepted you have 2 months of absolute s
te to go through. Stick with it though. It's worth it.
After weeping gently at how much they got for so little, I realised why they bought an ex-council house from the 1960's. The have a front garden bigger than most new builds have in total, and almost a small field at the back.
It depends on your priorities, area, and DIY-ability of course, but don't write anything off until you've seen it with an open mind.
Enjoy viewing stuff. Once your offer is accepted you have 2 months of absolute s
te to go through. Stick with it though. It's worth it.Thanks for the responses so far. I am a little suprised with the comments about there being virtually no room for price negotiation. Reading other places online seem to suggest new homes can offer substantial discounts on asking price (granted, some may be threads and questions from a few years ago now?)
Anyway, we are going to view the site on Saturday and have an internal tour of an identical house but we will only currently be able to view the property externally as it is not due to complete until January (so what is that in real terms? June?)
If we like it, then I was considering a 20% off the asking price offer which works out around £118k with nothing included and then gradually work extras in as they increase the price? Obviously they will laugh, but it should hopefully set the ball rolling.
We can move in as soon as it is completed, so surely it is a good thing from their point of view to have sold the house before they even finish it?
Anyway, we are going to view the site on Saturday and have an internal tour of an identical house but we will only currently be able to view the property externally as it is not due to complete until January (so what is that in real terms? June?)
If we like it, then I was considering a 20% off the asking price offer which works out around £118k with nothing included and then gradually work extras in as they increase the price? Obviously they will laugh, but it should hopefully set the ball rolling.
We can move in as soon as it is completed, so surely it is a good thing from their point of view to have sold the house before they even finish it?
Donatello said:
Thanks for the responses so far. I am a little suprised with the comments about there being virtually no room for price negotiation. Reading other places online seem to suggest new homes can offer substantial discounts on asking price (granted, some may be threads and questions from a few years ago now?)
There are lots houses for sale, many with desperate sellers. Many of those are developers. One of the best decisions I ever made was not to buy a new build as my first place during the last housing slump. Admittedly this decision was made easy by the handful of repos on the same site that were a) identical and b) 75% of the new one's asking price. They refused to budge on price too, though funnily enough a week or two later I was getting increasingly desperate sales calls from them.
It's a buyer's market.
Edit: that's not intended to put you off, just that all is not what it seems sometimes.
Interesting take on regional asking to sale prices.
http://blogs.thisismoney.co.uk/2011/05/asking-hous...
Builders tend to want to throw in incentives rather than lower the sale price - lower sale price affects their shareholders more. However, if you catch a builder at the end of a development wanting to get off site, and only having a few plots left with little interest, you have a bit of a chance. Also, buying off plan should attract some negotiation potential.
The other thing to remember these days is that incentives such as carpets and other things will be stated on the sale sheet with a value. This will be subtracted from the lender valuation in most cases. So if you are buying a place for 150k with 5k of carpets, the valuation will probably be 145k from the lender. I recently tried to get incentives off the sale sheet with a builder, but the rules are very tight now, and most builders will not do it.
Remember, if your first offer does not embarrass you, it was too high.
http://blogs.thisismoney.co.uk/2011/05/asking-hous...
Builders tend to want to throw in incentives rather than lower the sale price - lower sale price affects their shareholders more. However, if you catch a builder at the end of a development wanting to get off site, and only having a few plots left with little interest, you have a bit of a chance. Also, buying off plan should attract some negotiation potential.
The other thing to remember these days is that incentives such as carpets and other things will be stated on the sale sheet with a value. This will be subtracted from the lender valuation in most cases. So if you are buying a place for 150k with 5k of carpets, the valuation will probably be 145k from the lender. I recently tried to get incentives off the sale sheet with a builder, but the rules are very tight now, and most builders will not do it.
Remember, if your first offer does not embarrass you, it was too high.
Our last two homes have both been new-builds (wouldn't do it any other way!) and it depends on a number of factors.
As has been said, if it's in demand then you'll not be looking at much, if any, discount. That being said, their 'accessories' are very often flexible - and whilst you can't get price discount, you may be able to get upgraded internals etc. We managed to get built-in wardrobes, upgraded integrated appliances and some other bits and pieces. The deal maker was buying the property Freehold rather than Leasehold as per the plots before us.
If the builder has just about finished, then usually discounts are there to be had - after all, they're usually paying for grounds maintenance, security etc. If there are only a few plots left, you might be in a good spot.
As has been said, if it's in demand then you'll not be looking at much, if any, discount. That being said, their 'accessories' are very often flexible - and whilst you can't get price discount, you may be able to get upgraded internals etc. We managed to get built-in wardrobes, upgraded integrated appliances and some other bits and pieces. The deal maker was buying the property Freehold rather than Leasehold as per the plots before us.
If the builder has just about finished, then usually discounts are there to be had - after all, they're usually paying for grounds maintenance, security etc. If there are only a few plots left, you might be in a good spot.
When I bought a new-build house there was a boom on and they couldn't build them fast enough. Prices were going up every month like a petrol pump. Hence very much a seller's market, and you either paid the price or could sod off. Even when there was a major issue with the garage, the Head Cheese came round and said 'Well you signed the contract, tough'.
Hopefully things are a bit better balanced now.
That said, they may need your money more than you think so no harm in trying.
Hopefully things are a bit better balanced now.
That said, they may need your money more than you think so no harm in trying.
If the developer has only just started selling the houses then they are more likely to be bullish about prices and less quick to discount (fairly obvious really). If it is one of the last couple of houses they will be very keen to get off site and draw a line under the project, close the sales office, and move staff onto the next one. You can find out sales prices from websites like Zoopla which might give you an idea as to what they are actually going for. One more tip is to find out when the developer's financial year end or accounting period ends. They will always be keen to squeeze an extra sale through before they close off their books.
Good luck
Good luck
Well we just went and had a nosey round the outside of the house. It certainly isn't finished.. it is in a cul-de-sac off a small road through this new build estate. The cul-de-sac hasn't even got tarmac in half of it and the house we like is where the builders fence begins.
You can see into the garden but it is just a pile of rubble with no fencing at all so my OH is struggling to picture the garden size once fenced off. I think I'm more keen than my OH but I think she is just worried about the fact it isn't complete and we can't see it complete for a few months yet.
I wasn't actually aware that the development still had building work to do, as driving through the main streets on the estate, all houses look complete. It seems the cul-de-sacs that cannot be seen have been left until last..
Parking wise, there is a garage and driveway (total of 2 cars) and the pavement at the front of the house would have room for a car. Then, just outside the cul-de-sac there is plenty of space on the road through the estate.
I like it and can imagine it finished, but my OH is being the sensible, grounded one and not getting too excited!
You can see into the garden but it is just a pile of rubble with no fencing at all so my OH is struggling to picture the garden size once fenced off. I think I'm more keen than my OH but I think she is just worried about the fact it isn't complete and we can't see it complete for a few months yet.
I wasn't actually aware that the development still had building work to do, as driving through the main streets on the estate, all houses look complete. It seems the cul-de-sacs that cannot be seen have been left until last..
Parking wise, there is a garage and driveway (total of 2 cars) and the pavement at the front of the house would have room for a car. Then, just outside the cul-de-sac there is plenty of space on the road through the estate.
I like it and can imagine it finished, but my OH is being the sensible, grounded one and not getting too excited!
My 'old fart' experience would suggest that new builds attract a premium price. The exceptions as others have mentioned could arise if the property is one of the last (and therefore one of the less desirable) or the developer is facing some financial issues, particularly cashflow, and is prepared to compromise.
I know of a couple of friends who have bought new in the past 4 years and have been shocked by recent valuations of their properties notwithstanding the general price depression in the housing market.
As also mentioned today's new developments are to my mind overcrowded but I guess it's whatever you're used to. On the plus side you will get a house conforming to latest building regs and so vastly more efficient than a 1960's semi.
My current house is a new build and even though I managed to negotiate a £40K discount to the advertised price as the developer wanted to get shot and move on I know I still paid a premium. But if you've fallen in love with the property and you're unlikely to move on within 2 or 3 years then I guess it's a price worth paying; I know I don't begrudge it 5 years on.
In fact, it always comes back to location, location, location.....
I know of a couple of friends who have bought new in the past 4 years and have been shocked by recent valuations of their properties notwithstanding the general price depression in the housing market.
As also mentioned today's new developments are to my mind overcrowded but I guess it's whatever you're used to. On the plus side you will get a house conforming to latest building regs and so vastly more efficient than a 1960's semi.
My current house is a new build and even though I managed to negotiate a £40K discount to the advertised price as the developer wanted to get shot and move on I know I still paid a premium. But if you've fallen in love with the property and you're unlikely to move on within 2 or 3 years then I guess it's a price worth paying; I know I don't begrudge it 5 years on.
In fact, it always comes back to location, location, location.....
Donatello said:
Well, the time has come to start taking house hunting seriously! Our money for deposit is available in late November as we have it in a bond and we have some more in savings and an ISA.
We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
Possibly a good time of year for new build purchase. I bought a house in December 2001 whic was half way through being built. was on at £320k, i offered 250 and after being told to bugger off my phone rang a week later and I bought it for £265k including carpets( about 5k). Sold in 2007 for a nice profit.We are looking at 3 properties this weekend and our favourite is a new build.
It is in the best location, has the best features but only has 2 bedrooms compared to the 3 bedrooms in the others.
Has anyone on here had any experience buying a new build property? I feel like there is more room for negotiation as it is just a business to them with no emotional attachment to the home and they work off bigger margins.
Property is valued at £147,450 and if we like it, I feel like going in silly low just to see what sort of reaction I get.
Any advice from any of the much more experienced, old farts on here?
If the developers are reaching the end of a phase and they need to sel the last few to release the next phase then its always a good time.
If theres plenty of choice then look at the plot carefully. I bought ours which had some land next to it whcih was meant to be public open space but I was able to negotiate with the council to buy it for £1500 and it doubled the size of our garden.
I understand that new build estates tend to be over-crowded and you will rarely see a great deal of room around your property. It is our first home and it certainly has everything we would need/want.
The problem at the moment is the fact the garden isn't laid out so my OH is really struggling to picture it and I know she won't be happy until we have seen the garden fully laid out.
We have seen older properties we like but I don't think they are laid out as well or offer the same levels of satisfaction when it comes to location, look/feel of the area and the style of the house makes it a comfortable favourite of mine!
Thanks to everyone for their input so far, much appreciated! I'm glad there are people who have managed to negotiate on a new build as we are in a very strong position. We are ready to go from the start of December so if the house isn't ready until late Jan/early Feb then we can move in the day its completed!
The problem at the moment is the fact the garden isn't laid out so my OH is really struggling to picture it and I know she won't be happy until we have seen the garden fully laid out.
We have seen older properties we like but I don't think they are laid out as well or offer the same levels of satisfaction when it comes to location, look/feel of the area and the style of the house makes it a comfortable favourite of mine!
Thanks to everyone for their input so far, much appreciated! I'm glad there are people who have managed to negotiate on a new build as we are in a very strong position. We are ready to go from the start of December so if the house isn't ready until late Jan/early Feb then we can move in the day its completed!
Obiwonkeyblokey said:
If theres plenty of choice then look at the plot carefully. I bought ours which had some land next to it whcih was meant to be public open space but I was able to negotiate with the council to buy it for £1500 and it doubled the size of our garden.
Buying off-plan is difficult, as you have to have a pretty good imagination, working from a map and floor plans. You really need to think about things like nearby neighbours, which is South facing, whether you want your bedroom facing East so you wake up at the crack of dawn in summer, heights of fences and dividing walls, and the size of real furniture, not the stuff they draw on the plans.You can get some really nice places, and we VERY nearly went for somewhere off plan before finding our place.
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