Negotiate price on new build

I am a new build sales negotiator!!

Am interested to see how you are getting on.

You say that the negotiator told you that you couldn't have an appointment because there were 19 legal completions that week. This would suggest that the builder's financial year end was December 31st. The best deals are always to be had at financial year end.

Don't panic though because most builders also have "quarter targets" and Easter can also be very important to them. If you are looking for a March legal completion you should have some leverage.

When negotiating be pleasant and friendly - you want the negotiator to like you - believe me some negotiators can be a bit tempremental
(not me, of course, I'm always too busy thinking about my commission!! - apart from which I'm just a very nice person).

Seriously, your negotiator wants to make the sale and will help you get the best deal - remember the best deal has to be a win-win situation for you and the builder. (You don't want to buy a house from a builder who then goes bust).

Before you even attend a meeting with the negotiator check out what other builders in their area are offering. A good negotiator will know what the competition is up to - you need to know too.

Whilst you need to get the biggest cash discount you can, be flexible with the "goodies". Don't go for white goods, curtains etc - however, you may have to accept "free carpets" if they have already been fitted.

My best tip is don't offer anything. Ask them what they can do. They may go in low - you might get a pleasant surprise. If you are not happy with their offer then say something like "I'm sorry but that is rather less than I was hoping for". Then - here's the important bit - SHUT UP, DON'T SAY ANOTHER WORD. MAKE THE NEGOTIATOR COME BACK WITH ANOTHER OFFER.

The big trick in getting your way when negotiating is to let the other person do most of the talking. Most people in a negotiating situation find silence unbearable - stick it out and make the negotiator break the silence. This puts you in the driving seat.

If the negotiator doesn't make an offer at this stage you must ask them for a better offer. Again do not mention any figures whatsoever. Don't name your price until you absolutely have to.

When it comes to talking figures, go in lower and be prepared to negotiate up. Try not to give away too much financial information - play your cards close to your chest. By the way - unless the builder is absolutely desperate a 40% discount seems unlikely. 10 to 15% is about the average.

Caution - Make sure the sale of your property is safe. If you have exchanged contracts your sale is guaranteed and you will be in a very strong negotiating position. If not, then I'm afraid - from both the negotiators and the builders point of view - you are not a guaranteed purchase - your sale could fall through. Sounds tough but it's the truth.

Your deal will be tied into a quick exchange of contracts, either 4 or 6 weeks. Most builders are getting very tough on this. Your reservation fee will be non-refundable so please make sure your sale is safe before you committ yourself.

Go shopping after you have exchanged contracts - even if it means staying with relatives or renting for a while. You will pick up the best bargain once the builder knows your money is safe in the bank.

Good luck.

Lessonlearned is right - not just telling you what the builders want you to hear. The area I get most of my business from is new build. If you go in with an offer 40% below the asking price you won't get anywhere - business is slow at the moment for builders, but it's not THAT bad! Some of the builders I work with had financial year ends in December, so my clients were getting 10-15% off the asking price. That was for those people reserving in the last four weeks, in a position to complete BEFORE Christmas. I have had new enquiries this weekend and the builders won't budge from a 3-5% discount. They will negotiate, but if you ask for 40%, they'll walk away.

Dolce vita, I can see exactly what you're saying, but the builder will find someone willing to pay the higher amounts. I wouldn't buy a new build (mainly because I personally like older houses!) but I don't know of any builder accepting such low offers in my part of the country!

The.Real.Me wrote: »

there are plenty of devlopments in the same area so I can shop around a little

That should be a warning sign in terms of the direction of prices (if, of course, that matters to you).