Can I get a new build discount??

mrsnow101

In an ideal world I would prefer to wait an extra 12 months before taking the plunge onto the property market... however personal circumstances have changed, and I would like some more space/security for my soon to be expanding family should a suitable opportunity become available. I appreciate many people will say 'hang on - dont buy yet!!' - we are not commiting to anything - we just want to see what our options are at this stage.

I've been looking at properties with a view to trying to achieve a big discount - we are FTB's with a sizable deposit, with good legal contacts which should ensure a speedy completion.

I am basically wondering if anyone has had any experiance lately of offering on new build properties. There is lots of gumph on the website regarding shared equity/cash back/interest free loans/free carpets etc... i'm not interested in any of this - I just want a reduced asking price.

Do I have scope to negotiate?? Has anyone managed to successfully negotiate a reduced price on a new build?? If so, what sort of reductions were you able to achieve??

We are just trying to arm ourselves with as much information as possible before deciding whether we should look at trying to progress to the next stage.

All contributions welcome!!

socrates

I believe the decelopers would be falling over themselves - perhaps you should look on Rightmove for new builds that are for resale.

Personally unless I was buying in a very sought after area - I would not touch a new build.

I don't believe this 50% reduction on new builds rumour - they must be in very poor areas.

pandamonia

mrsnow101 wrote: »

In an ideal world I would prefer to wait an extra 12 months before taking the plunge onto the property market... however personal circumstances have changed, and I would like some more space/security for my soon to be expanding family should a suitable opportunity become available. I appreciate many people will say 'hang on - dont buy yet!!' - we are not commiting to anything - we just want to see what our options are at this stage.

I've been looking at properties with a view to trying to achieve a big discount - we are FTB's with a sizable deposit, with good legal contacts which should ensure a speedy completion.

I am basically wondering if anyone has had any experiance lately of offering on new build properties. There is lots of gumph on the website regarding shared equity/cash back/interest free loans/free carpets etc... i'm not interested in any of this - I just want a reduced asking price.

Do I have scope to negotiate?? Has anyone managed to successfully negotiate a reduced price on a new build?? If so, what sort of reductions were you able to achieve??

We are just trying to arm ourselves with as much information as possible before deciding whether we should look at trying to progress to the next stage.

All contributions welcome!!

i hope by sizable deposit you mean about 50% ?

banks dont like to lend for new builds since they are seriously overpriced.

socrates

pandamonia wrote: »

i hope by sizable deposit you mean about 50% ?

banks dont like to lend for new builds since they are seriously overpriced.

That is one of the reasons I suggested a re-sale new build - over 2 years old a lot lenders no longer consider it to be a (new) new build

adr0ck

pandamonia wrote: »

i hope by sizable deposit you mean about 50% ?

banks dont like to lend for new builds since they are seriously overpriced.

this is for new build flats only

if your buying a new build bungalow, semi detached house, detached house, terrace etc etc

i.e. anything except a flat then new builds are treated no differently than existing houses

if i were you and wanted a new build i would look for small sites - these tend to keep their value better

with large sites at mo a lot of developers are now selling plots off to HA's - this will decrease the value of the private plots

though please note most councils now have a policy of 50% affordable homes anyway (or if they don't they will soon be bringing it in)

so to be honest in 5 years time you won't be able to find a new build site without social housng covering at least 50% of it

draconian_2

I dont think it is too hard to find a deal on a new build, we purchased one recently and will be completing on it next week. We started with an asking price of £375k, we offered £300k and went from there.
In the end we paid £325k which was the most we were going to pay but we had to wait til exchange before we got it down to this level.
We also got £20k's worth of incentives which included a host of upgrades in the property, stamp duty, removals, landscaped garden, extra lighting, etc.

Find your self 2 or 3 houses you would really like to buy and start the offering, the moment you can put yourself in a buying position the builders will be keen to secure your business.

I am of the opinion based on my brokers feedback that as long as the lender does their valuation (mandatory anyway) if they think the property is over valued then they will say so - I don't think anyone can say lenders dont like new builds when a valuation is probably your secret weapon! If I found my house was undervalued by the lender -I would use that to get the price dropped further, if they don't drop walk, we did anmd the builder complied with our request...

Good luck and enjoy playing the game - we have purchased a number of new houses in the past 10 years and the builders always pushed us around, this time the consumer turns the tables.
:beer:

mrsnow101

From what I have read (and I could be wrong), I was under the impression that mortgages were more difficult to obtain for new build flats than houses.... all providers are insisting upon some form of deposit (in the region of 10-20%). The days of 100/120% mortgages are long gone - but I would never have saddled my self with that much debt anyhow - hense the reason for saving the last 7 years.

I actually went to view the site with my partner earlier. The sales women seemend nice enough - initially tried to pitch the shared equity scheme, but she generally seemed quite resigned to the fact that we were just more speculators (well that was my reading of the situation).

She asked us about deposit, and we hinted that we do have a sizable one, and are not interested in shared equity... to this she seemed to perk up quite a bit. I asked about potential discounts, and she indicated that any offer (providing it was'nt ridiculously small) would be considered.

The house is listed at £149k...

We'll be going back tomorrow to look inside one of the houses.

What would be considered "a cheeky bid"??!

NoDebtForMe_2

£90,000 ???

SavingSteve

How long has it been on the market? When was the 149k price launched?

mrsnow101

The development its self is over 12 months old, although the house we were looking at will be completed in March.

carrottsforlunch

Im actually a sub-contractor who works for developers like wimpey/bryants/persimmon/redrow etc .They have all in the last few weeks invited me to slash my prices by 18%-20% . SCREW THEM FOR 30% !! :j