Haggle on a New Build?

SavingSteve

naijapower wrote: »

Yes, it is possible to get good discount depending on your haggling power.
Also, it is true that some builders would lend u physical cash for your deposit to ensure quick sale. In this way they now have an interest/charge on the property

Would this not effect the banks willingness to lend? Surely if another party has a charge on the house that will diminish the bank's security?

Premier_2

SavingSteve wrote: »

...
E.g. if they are asking 545 I think they would never get more than say 520.
But I don't want to pay 520!...

Surely if they are asking £545k, then they want £545k else whats the point in the asking price?

If people think they will automatically get a 5% reduction, surely sellers will simply increase prices by 5%. Then buyers will want 10% reduction, so prices will be inflated accordingly, and so on.

Everything is negotiable, but I wouldn't even start unless the initial asking price is realistic. With the market as it is, there are plenty of people wishing to sell who are marketing their properties at realistic asking prices (and that includes new builds)

SavingSteve

These properties, in my example, were priced at 545 4 months ago, at the start of development. A LOT has happened in these four months

I find that with new builds, they set the price early, and I've never seen the asking price reduced (granted I've only had a cursory glance at the market over the last year or so).

Hence my initial question really. Given the last few months I honestly think these properties are overpriced, and would never consider paying their asking price. And it appears negotiating on new builds is possible, and this to me is a prime example of where the asking price will need to be negotiable for these to sell.

zone

Hard to say price wise but if they are asking £520k is that already reduced or their original asking price? You could probably get it for much less. If you really want it id go in with an offer of about £450k. If they turn it down its going to be your decision if you are willing to pay any more.

Entertainer

SavingSteve wrote: »

I don't see why buying in the current market is madness?

If I am able to secure a hefty discount why wait until the bottom of the market when every Tom, !!!!!! and Harriet will be on the market competing with us?

Because if prices fall another 30%, today's giveaway bargain will be tomorrow's market price or higher. At the end of the day, you have to make a decision about timing, there are plenty of people on here, including me, who will tell you to wait.

If you are determined to buy then be prepared to make very low offers on these new builds. Your £545k property may well go for £450k or less so don't hold back. You are bascially in the biggest buyer's market for 30 years. As a buyer, you have suffered from ridiculous prices for years- now it's finally your time in the limelight so use it. Be prepared to walk away from a property if you don't get enough of a discount. There are hundreds of nice properties out there and you are the one in the position of power.

Premier_2

I can sure you, prices do go up & down on new build developments in line with market forces.

Granted, developers do hate to reduce prices, but that is where other incentives come in. They prefer to add value rather than cut costs.
Better to add a £20k conservatory (especially if it's only cost the builder £8k!) than knock £20k off the price.

Premier_2

Entertainer wrote: »

Because if prices fall another 30%, ...

What do you mean another 30%?

Think you've been brainwashed by the unsubstantiated nonsence often posted on this site for too long. (unless I missed the fact it was in Northern Ireland where prices rose faster than the rest of the UK before the crunch)

See here for some real average figures posted earlier:
http://forums.moneysavingexpert.com/showpost.html?p=17677335&postcount=15

SavingSteve

Sounding more and more promising. More than happy to go in with very low offers. We have by no means set our heart on the new builds, and are considering existing builds too.

I am however a) very keen to secure a place within the next 6-9 months and b) not keen on the idea of waiting too long as then I feel the market will be inundated with buyers.

Appreciate it's a risk appetite thing, and as this is a home for life / at least 10-15 years, then I'm not overly concerned that if my 30% discount ends up being market price in a year.

Premier_2

(a) don't even consider a place that is not ready to move in today - there's no guarantee when or even if it'll ever be finished.

(b) "keen to secure a place within the next 6-9 months"? Then I suggest you start looking in 5-8 months time. If you want a bargain, developers will expect you to move quick, usually exchanging in a couple of weeks and completeing within the month from first reservation.

SavingSteve

Thanks, this was just an exploratory thread. I totally agree with the not to offer until built concept in the current climate.

Reason for posting was that we have started to look more actively than before (want to thoroughly research the market), and were on the verge of ruling out new builds as asking prices were set high. From replies it seems they are as willing to negotiate as private sellers, so we have more of a market at our disposal.

As FTBs we're confident we can move as fast as required when we finally make the leap (I will dig up this thread when/if we do to update how we got along!)