Buying a new development in this climate

Bayesian_Roller

After years of saving, missus and me are finally seriously looking into buying and there seem to be some quite decent new builds in London. However, they are still rather pricey.

So, I was wondering has anyone here had experience in negotiating with, say, Foxtons on new homes recently. How low are they prepared to go and what are the typical negotiation points?

All sensible advice appreciated bar actually pointing at the EA and laughing, some of the ones we have dealt with have been quite polite. :A

PS Ready to buy, nothing to sell, mortgage agreed in principle.

silvercar

Negotiation points:

stamp duty included, carpets thrown in, white goods in kitchen, garden landscaped, fitted wardrobes, electrics to garage/ shed.

All things (bar the first) that will cost the builder a lot less than you would pay to do privately.

Premier_2

Is there a sales office, rather than going through an EA?

I'm not having a go at the EA, but ultimately it will be the developer who decides what price they are prepared to sell at ... and what incentives they might throw in to secure the sale.

So negotiating things like carpets, curtains, landscaping, fencing, conservatory (?) etc as well as price might be easier direct with their own sales team, and sometimes the site foreman, rather than through a third party EA.

Jorgan_2

To add to the advice already given, try & find out when the developer's year end. They will usually give a bigger discount if you can complete just before the year end.

brit1234

For buying a developers new build wait at least six months. The big developers are yet to drop their prices much but should in the next 6 months when they have to anounce their rapidly collapsing company profits. Taylor Wimpy for example will go bust in January which should see big reductions with them and should trigger an avalanche in price fall in newbuilds.

Other option for newbuilds is to buy a repossossed new build at auction where people are typically getting 30-60% off at this time so you don't have to wait.

hethmar

Foxtons :eek: Well, have a good look on rightmove and findaproperty and google the development name as there may already be a second hand flat available at less than the current asking prices.

If you do negotiate aim at 25% at least below their asking price.

Good luck

Conrad

I've been looking at newbuilds for b2l but wont consider anything unless price is 50% less than the peak land registry prices

Bayesian_Roller

OK, lots of good ideas here, cheers. :beer:

We are not in a rush, so may give it another few months. Would rather avoid auctions, since they seem like a messy affair.