IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Negotiate price on new build
Closed Thread
Views: 19,425
Thread Tools Search this Thread Display Modes
# 1
The.Real.Me
Old 17-12-2007, 10:07 AM
MoneySaving Convert
 
Join Date: Jul 2007
Posts: 31
Default Negotiate price on new build

Can you do this...

We have sold our house to a first time buyer, they have had survey done and are looking to complete before March.

On Saturday we looked at a new build on the market for 199950, what would be the best form of attack to get this price down and get 'extras' added into the price?

Not having done this before would like some advice from all the kind folks on here.

Thanks in advance
The.Real.Me is offline
Report Post
The Following User Says Thank You to The.Real.Me For This Useful Post: Show me >>
# 2
macaque
Old 17-12-2007, 10:32 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Aug 2007
Posts: 2,366
Default

Quote:
Originally Posted by The.Real.Me View Post
Can you do this...

We have sold our house to a first time buyer, they have had survey done and are looking to complete before March.

On Saturday we looked at a new build on the market for 199950, what would be the best form of attack to get this price down and get 'extras' added into the price?

Not having done this before would like some advice from all the kind folks on here.

Thanks in advance


My apologies, my first effort was missdirected. I don't think you have made an offer yet. Go for the jugular and offer 40% below the asking price. Explain that this is the discount that new builds are enjoying in auction.

Last edited by macaque; 17-12-2007 at 10:37 AM.
macaque is offline
Report Post
# 3
The.Real.Me
Old 17-12-2007, 10:40 AM
MoneySaving Convert
 
Join Date: Jul 2007
Posts: 31
Default

No we haven't made an offer yet, we have an appointment to see the sales negotiator on Saturday 22nd Dec.

We went last Sat to have a look around and went into two different style properties on their site and we like/ prefer the more expensive of the two.

Thanks again
The.Real.Me is offline
Report Post
# 4
hearts
Old 17-12-2007, 1:21 PM
Serious MoneySaving Fan
 
Join Date: Oct 2004
Posts: 1,144
Default

Quote:
Originally Posted by macaque View Post
My apologies, my first effort was missdirected. I don't think you have made an offer yet. Go for the jugular and offer 40% below the asking price. Explain that this is the discount that new builds are enjoying in auction.

Nice approach give the guy a good laugh then start the real negotiaitions. In truth it depends on how the market is doing in your area. How saught after the properties are and how long they have been on the market.
hearts is offline
Report Post
# 5
The.Real.Me
Old 17-12-2007, 1:40 PM
MoneySaving Convert
 
Join Date: Jul 2007
Posts: 31
Default

The properties we looked at were what is left from phase one of the site, they have just opened phase 2 for reservations.

The two houses we viewed have carpets already fitted and cooker (and hood) but nothing else really, not even burglar alarms.

What should we be asking for them to include? I thought alarm, dishwasher, stamp duty and removal costs as a starting point, anything else?

Thanks again
The.Real.Me is offline
Report Post
# 6
The.Real.Me
Old 17-12-2007, 1:43 PM
MoneySaving Convert
 
Join Date: Jul 2007
Posts: 31
Default

BTW, they started building 14 months ago and they have around 15 properties left from phase 1 out of original total of approx 50.

The young Girl we spoke to briefly on Sat told us they have 19 completions going through this week, hence why she couldnt give us an appointment until Sat.
The.Real.Me is offline
Report Post
# 7
Rover
Old 17-12-2007, 1:46 PM
MoneySaving Stalwart
 
Join Date: Oct 2004
Posts: 300
Default

You are in an excellent position.
Builders, the larger the better, are the easiest people to negotiate with.
Yes you will easily be able to haggle a decent discount - honestly.

Personally wouldn't bother 'free extras', negotiate a decent price reduction.
Quoting negative equity, etc.
anger, denial, acceptance
Rover is offline
Report Post
The Following User Says Thank You to Rover For This Useful Post: Show me >>
# 8
lypsey
Old 17-12-2007, 3:58 PM
MoneySaving Convert
 
Join Date: Jun 2006
Posts: 195
Default

Personally , I would advise renting for 12 months and buy your new house 20% less.

Put your equity in the highest paying bank account you can find

The market will be 50% lower in 5 years time , why pay 200k at the TOP of the market???
lypsey is offline
Report Post
# 9
terrierlady
Old 17-12-2007, 7:46 PM
Serious MoneySaving Fan
 
Join Date: Feb 2004
Location: south west
Posts: 1,684
Default

dream on, 40% discount id buy one myself!!!!!
alarm cant be fitted once 2nd fix has taken place unles its wireless.
my bark is worse than my bite!!!!!!!!
terrierlady is offline
Report Post
# 10
firsttimetom
Old 17-12-2007, 7:50 PM
MoneySaving Stalwart
 
Join Date: Apr 2007
Posts: 273
Default

Quote:
Personally , I would advise renting for 12 months and buy your new house 20% less.

Put your equity in the highest paying bank account you can find

The market will be 50% lower in 5 years time , why pay 200k at the TOP of the market???
My goodness!!

I am looking forward to the coming 'correction' as much as the next 'doom monger', BUT if the OP has found a house they like, in an area they like and they can negotiate a discount and can comfortably afford the repayments, then why wait 5 years?

The.real.me sounds like they are looking for a home for themselves and if all the boxes can be ticked as above, then they should go for it.

Am I hoping for a nice big crash so I can get myself and my partner on the ladder: HELL YES
Do I think people should put their life on hold for 5 years so they MIGHT save a bit of money (After all we don't know how far they WILL fall): Definately Not.
firsttimetom is offline
Report Post
The Following 2 Users Say Thank You to firsttimetom For This Useful Post: Show me >>
# 11
Rover
Old 17-12-2007, 7:54 PM
MoneySaving Stalwart
 
Join Date: Oct 2004
Posts: 300
Default

Quote:
Originally Posted by terrierlady View Post
alarm cant be fitted once 2nd fix has taken place unles its wireless.
I beg to differ madam, I suggest you limit your advice to dishes and ironing
anger, denial, acceptance
Rover is offline
Report Post
The Following User Says Thank You to Rover For This Useful Post: Show me >>
# 12
hearts
Old 17-12-2007, 8:50 PM
Serious MoneySaving Fan
 
Join Date: Oct 2004
Posts: 1,144
Default

Quote:
Originally Posted by lypsey View Post
Personally , I would advise renting for 12 months and buy your new house 20% less.

Put your equity in the highest paying bank account you can find

The market will be 50% lower in 5 years time , why pay 200k at the TOP of the market???
Do you honestly believe this tripe ;-)

If prices are even 1 % cheaper in 5 years than they are now, come back and I'll send you a big cheque ;-)
hearts is offline
Report Post
# 13
Rover
Old 17-12-2007, 9:01 PM
MoneySaving Stalwart
 
Join Date: Oct 2004
Posts: 300
Default

I am undecided on how much prices will fall or correct. I am however damn sure it'll be of a double digit magnitude. Time scale will be years.
It wouldn't be worth the effort in trying educate you of my reasoning or of the over-whelming fundamental causes.

Can I just ask you, if the IMF and Alan Greenspan have predicted 40% falls and as recently as last week, before a parliamentary committee, Merv King said, expect falls in both commercial and residential prices in 2008. Why are you so confident, or should that be, blinkered?
anger, denial, acceptance
Rover is offline
Report Post
# 14
The.Real.Me
Old 18-12-2007, 9:43 AM
MoneySaving Convert
 
Join Date: Jul 2007
Posts: 31
Default

Yes, we are looking for a house/ home to live in for the next 20 years or so and can comfortably afford the mortgage, it is not anywhere near the amount we can afford to borrow, but that doesn't mean I shouldn't try to get a discount, should it?
The.Real.Me is offline
Report Post
# 15
merlinthehappypig
Old 18-12-2007, 10:08 AM
Serious MoneySaving Fan
 
Join Date: Jun 2007
Posts: 1,058
Default

Quote:
Originally Posted by The.Real.Me View Post
Yes, we are looking for a house/ home to live in for the next 20 years or so and can comfortably afford the mortgage, it is not anywhere near the amount we can afford to borrow, but that doesn't mean I shouldn't try to get a discount, should it?
No it doesn't, of course you should try.

Ignore both ends of the 'market will crash' and 'market won't crash' arguments and just stick with the facts.

Builders of new homes are struggling. Share prices have dropped markedly and demand is weaker at the moment. Buyers in a position to proceed are like gold dust at present.

Regardless of what the market may or may not do in the future, currently houses are not selling as well as they were and you are in a great position. Personally I would go in with a low offer, somewhere around 15-20% less and work from there. You will probably not get that much off, but stick to your guns and do the best that you can. Give the impression that you will walk away and buy elsewhere unless they agree to your price. Don't be afraid to walk away and let them sweat - we have been offered some significant discounts lately after letting the sellers dwell on things for a week or so.

Like some other posters have advised I wouldn't be interested in 'extras' - it's money off that you want.

I would expect to be able to negotiate at least 10% off with a new build in the current climate and you might do better than that.
merlinthehappypig is offline
Report Post
The Following 2 Users Say Thank You to merlinthehappypig For This Useful Post: Show me >>
# 16
mr.broderick
Old 18-12-2007, 10:17 AM
PPR
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Oct 2006
Posts: 3,539
Default

Quote:
Originally Posted by The.Real.Me View Post
Can you do this...

We have sold our house to a first time buyer, they have had survey done and are looking to complete before March.

On Saturday we looked at a new build on the market for 199950, what would be the best form of attack to get this price down and get 'extras' added into the price?

Not having done this before would like some advice from all the kind folks on here.

Thanks in advance
Ignore the hpi lunatics, i have just bought a house so take my impartial advice. Offer 163772. See what happens, good luck, you can always up your offer but wait a couple of weeks before doing this, it's not as though it's the last house on the plot, good luck with whatever happens
mr.broderick is offline
Report Post
# 17
lypsey
Old 18-12-2007, 3:51 PM
MoneySaving Convert
 
Join Date: Jun 2006
Posts: 195
Default

Hearts , yes I do believe it and I have sold my house and banked the money

If shes spending 200k and she saves herself just 10% , I would say a saving of 20k is worthwhile , don't forget 20k over the life of a 25 year mortgage costs you 40k

What if she saves 30% over 3 years , 60k and then over 25 years costs 120k.
Answer me honestly DO YOU think it is worth it???

If a house can rise 300% over a decade , please please explain why it can't crash 40%
lypsey is offline
Report Post
The Following 3 Users Say Thank You to lypsey For This Useful Post: Show me >>
# 18
hearts
Old 18-12-2007, 3:51 PM
Serious MoneySaving Fan
 
Join Date: Oct 2004
Posts: 1,144
Default

Quote:
Originally Posted by Rover View Post
I am undecided on how much prices will fall or correct. I am however damn sure it'll be of a double digit magnitude. Time scale will be years.
It wouldn't be worth the effort in trying educate you of my reasoning or of the over-whelming fundamental causes.

Can I just ask you, if the IMF and Alan Greenspan have predicted 40% falls and as recently as last week, before a parliamentary committee, Merv King said, expect falls in both commercial and residential prices in 2008. Why are you so confident, or should that be, blinkered?
Can you supply a link to the 40% quote you give please. As for falls they may or may not happen but they will certainly not happen to the degree you so freely "predict".
I am not in any way blinkered. If I thought what you say was likely I would say so. I don't, so I say that.
My reasoning I suspect is based on far better financial reasoning than yours. Unless there is a war, plague, or other great disaster in the near future which cannot be accounted for then what you hope for won't happen. ;-)
hearts is offline
Report Post
# 19
Rover
Old 18-12-2007, 4:00 PM
MoneySaving Stalwart
 
Join Date: Oct 2004
Posts: 300
Default

I did not predict 40% falls, the IMF and Greenspan said UK housing is 40% over-valued.
I will dig out the links if I have time later.
King was on TV last week wrt the other aspect.
MY prediction was of 10%+ and quickly. The 'disaster' has already happened, sentiment has turned, fundamentals don't add up. Relevant share prices have halved, I could go on but you are still in denial.

I did not mention crash, I said correction and it will go on for years. Leaving the great British public paying interest on a depreciating assets whilst the orchestrators move on to the next bubble.
anger, denial, acceptance
Rover is offline
Report Post
The Following 2 Users Say Thank You to Rover For This Useful Post: Show me >>
# 20
dolce vita
Old 18-12-2007, 4:00 PM
Serious MoneySaving Fan
 
Join Date: Jul 2007
Posts: 967
Default

Quote:
Originally Posted by hearts View Post
Can you supply a link to the 40% quote you give please. As for falls they may or may not happen but they will certainly not happen to the degree you so freely "predict".
I am not in any way blinkered. If I thought what you say was likely I would say so. I don't, so I say that.
My reasoning I suspect is based on far better financial reasoning than yours. Unless there is a war, plague, or other great disaster in the near future which cannot be accounted for then what you hope for won't happen. ;-)

Like banks refusing to lend money for over-priced properties, for example?



OP - you should not be paying more than 70% of the valuation on a new build.
dolce vita is offline
Report Post
The Following 2 Users Say Thank You to dolce vita For This Useful Post: Show me >>
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 7:44 AM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 23 April 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • VARIOUS ARTISTSNOW THAT'S WHAT I CALL MUSIC! 87
  • VARIOUS ARTISTSFROZEN (ORIGINAL MOTION PICTURE SOUNDTRACK)
  • VARIOUS ARTISTSEUPHORIC CLUBLAND 2

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.