New build homes - discounts

[thebullettrain]

I recently visited a new build in Essex. The house is nice and I need to move (growing family and lack of space). I understand the developers will accept offers but I am unsure how low to go. Ideally I want 20% off, but is that too much or should I go in deeper?

[gopher]

I would start at around 5-10% less than you want to pay, they can only say no, then either up it by a few % each time or just ask them what the minimum offer they would accept is.

Obviously you'll be in a good position if you have no chain and\or finance issues.

[scotal]

If your first offer doesn't emabarrass you it's not low enough seems to be the mantra right now.

[rsv gone!]

No harm in going in with a hard offer. You can always raise it.

Margins on spec housing were generally quite high.

[NoelWatson]

There is a poster on here who works for one of the big house builders and IIRC he said that if you have funding in place you can get up to 40-50% off for certain plots. Hopefully he will read this and post more info

[R5GTTgaz]

I've been looking around and have had 20% knocked off the list price without any hassle at all.

[Simpo Two]

'Buy one get one free', I should think. A suitcase full of money will help too.

[anonymous-user]

Aren't values expected to drop up to 40% over 4-5 years from last year, depending on your area?

Shirley that's the kind of discount to go for.

[thebullettrain]

Thanks guys, hopefully the developer guy will be able to help!
I think prices will be coming down around 25-30%. I am not sure where the 40-50% projection comes from.

[R5GTTgaz]

El stovey said:

Aren't values expected to drop up to 40% over 4-5 years from last year, depending on your area?

Shirley that's the kind of discount to go for.

Thats like saying house prices are due to be up 100% in ten years time, so pay double for your house now.

[hornetrider]

I'd certainly be looking at 25% at least - they can only say no. Maybe even go in at 30%. At the end of the day, no bugger can get mortgages at the moment so if you can or have the cash then money talks - developers need the cashflow.

[scotal]

hornetrider said:

At the end of the day, no bugger can get mortgages at the moment

bks.

[hornetrider]

scotal said:

hornetrider said:

At the end of the day, no bugger can get mortgages at the moment

bks.

You know what I mean tosspiece

[Deva Link]

thebullettrain said:

I recently visited a new build in Essex. The house is nice and I need to move (growing family and lack of space). I understand the developers will accept offers but I am unsure how low to go. Ideally I want 20% off, but is that too much or should I go in deeper?

Do you have a place to sell?

[scotal]

hornetrider said:

scotal said:

hornetrider said:

At the end of the day, no bugger can get mortgages at the moment

bks.

You know what I mean tosspiece

I do, and I agree with what you said, apart from that bit.

[thebullettrain]

Nothing to sell and finances in place. The house will not be built until November but I will say I can exchange with 4 weeks if that helps them. Will go in deeper I think.

Edited to say exchange not complete!

Edited by thebullettrain on Sunday 31st August 10:19

[anonymous-user]

R5GTTgaz said:

El stovey said:

Aren't values expected to drop up to 40% over 4-5 years from last year, depending on your area?

Shirley that's the kind of discount to go for.

Thats like saying house prices are due to be up 100% in ten years time, so pay double for your house now.

Why would you want to pay double for a house in falling market?

[R5GTTgaz]

El stovey said:

R5GTTgaz said:

El stovey said:

Aren't values expected to drop up to 40% over 4-5 years from last year, depending on your area?

Shirley that's the kind of discount to go for.

Thats like saying house prices are due to be up 100% in ten years time, so pay double for your house now.

Why would you want to pay double for a house in falling market?

How I get it is that you want to pay what the house will be (predicted) value in 5yrs time.

[anonymous-user]

R5GTTgaz said:

El stovey said:

R5GTTgaz said:

El stovey said:

Aren't values expected to drop up to 40% over 4-5 years from last year, depending on your area?

Shirley that's the kind of discount to go for.

Thats like saying house prices are due to be up 100% in ten years time, so pay double for your house now.

Why would you want to pay double for a house in falling market?

How I get it is that you want to pay what the house will be (predicted) value in 5yrs time.

Fair enough but why not?

The OP has the cash is ready to go and all the time prices are dropping. The place isn't even built yet. I think he should try for a good 30% discount otherwise his new place will lose him money if he has to unexpectedly sell it very soon after he buys it.

[anonymous-user]

R5GTTgaz said:

El stovey said:

Aren't values expected to drop up to 40% over 4-5 years from last year, depending on your area?

Shirley that's the kind of discount to go for.

Thats like saying house prices are due to be up 100% in ten years time, so pay double for your house now.

Not really. In a rising market the developers are making very good profits, possibly at over inflated prices, so you happily pay what THEY ask or slightly over. In a falling market, unless the developer has already priced at the market levels (which is not normally done as they hope a dumb ass will pay full price), buyers are scarce and in control and developers are getting desperate so you offer what YOU think is value. That's how the market works.