Negotiating on new build - Advice please...

WhoDaresWins_2

Hi folks

I'm keen on a new build that's scheduled for completion Oct/Nov. The list price is £192k, but in my opinion that's slightly overvalued and I've been trying to get them to accept an offer of £185k, with the carpets / turf / kitchen appliances thrown in.

Seemed like a reasonable offer to me, but they've just said they're don't really negotiate on prices just now as there's a lot of interest and they'll only offer such deals when it gets close to completion but hasn't been bought yet.

There was an identical one we just missed out on, which they reduced to £187.5k. I had previously offered £185k and they said they'd get back to me, but when they did it was to say it had now been sold for £187.5k

So we're now thinking that, as there's only 2 left and with strong interest, we're going to have to pay the full asking price with no incentives (not even carpets!) which just doesn't sit right with me in this market?

Any advice? Are we being unrealistic in expecting a 3.5% discount to the list price with a couple of extras chucked in?

I should have mentioned that we'd be using their part-exchange scheme, which they keep saying is a great deal (which it maybe is, it'll save us a lot in estate agency fees etc) but I kinda want more than that...

Thanks!

Thrugelmir

WhoDaresWins wrote: »

Hi folks

I'm keen on a new build that's scheduled for completion Oct/Nov. The list price is £192k, but in my opinion that's slightly overvalued and I've been trying to get them to accept an offer of £185k, with the carpets / turf / kitchen appliances thrown in.

Seemed like a reasonable offer to me, but they've just said they're don't really negotiate on prices just now as there's a lot of interest and they'll only offer such deals when it gets close to completion but hasn't been bought yet.

There was an identical one we just missed out on, which they reduced to £187.5k. I had previously offered £185k and they said they'd get back to me, but when they did it was to say it had now been sold for £187.5k

So we're now thinking that, as there's only 2 left and with strong interest, we're going to have to pay the full asking price with no incentives (not even carpets!) which just doesn't sit right with me in this market?

Any advice? Are we being unrealistic in expecting a 3.5% discount to the list price with a couple of extras chucked in?

I should have mentioned that we'd be using their part-exchange scheme, which they keep saying is a great deal (which it maybe is, it'll save us a lot in estate agency fees etc) but I kinda want more than that...

Thanks!

With only 2 left and several months to completion why would they discount the property at this point ? They know the level of interest from other buyers as well.

Not sure why you expect preferential treatment to anyone else.

WhoDaresWins_2

I don't really expect any preferential treatment, but I did think we'd able to haggle the price down a little

Maybe I'm being naieve but I didn't think anybody really paid the full list price for new builds?

Thrugelmir

WhoDaresWins wrote: »

I don't really expect any preferential treatment, but I did think we'd able to haggle the price down a little

Maybe I'm being naieve but I didn't think anybody really paid the full list price for new builds?

Until its nearly finished the builder is in no hurry. As why give away profit now?

I agree that you can haggle. Though look at completed units where its costing the builder money. Once finished the builder is losing money on paying interest to the bank. So will be more likely to negotiate on price or extras.

WhoDaresWins_2

Mmm, we don't really want to wait too late as there's a chance it'll go to someone else beforehand.

Suppose we've got a tricky decision - either pay the full price with no extras to guarantee the house or risk waiting to getting a better deal, knowing we might end up with nothing.

terrierlady

the incentive you have already is part exchange this costs the builder approx £10k you saved on hips pack saved on agents fees and still looking for discount.... why not try the market your self the builder will be more keen to deal if you are sstc and yes why would they deal when the markets picked up? they maybe sold the other propery straight so achieved more at net basic, we all want to make money not give things away.

WhoDaresWins_2

OK, seems I'm expecting too much.

From some other threads I had thought I'd be in a position to haggle but it would appear not.

Out of interest, when people talk about being able to secure discounts on new builds, are they talking about buying off plan early on in the development rather than toward the end?

If I offer the full price, is it still unrealistic to expect carpets and maybe some turf too?

It's just the extra we had set aside for that kind of thing is now going into the deposit (didn't realise lenders required bigger deposits for new builds...) and so we're kinda stretched at the minute.