Buying a new build - developer won't discount!?

Doozergirl

I don't think they will offer significant discounts until they have built the house and it hasn't shifted. If it isn't out of the ground they've got plenty of time to wait for a better price. The rise in their anticipated release price just shows their confidence on those plots.

If you want a deal you generally have to pick the plot that no-one else wants - if that's the only one suitable for you off plan, it's likely the only one suitable for someone else.

jimjones235

Thanks for the replys...

Tbh - I always felt the list price was an imaginary figure they use just so that you feel like you get a good deal when they offer you 10% discount. I don't think in the current climate a 20% discount is too cheeky infact IMHO I think they would have happily accepted a 40% discount on the last remaining plots on the current site (the sales lady indicated as much).

My feeling is that they are holding back with this plot because to me it's the best one on the new site - which is fair enough I guess.. I was just trying to gauge whether they set the list price as the price they are hoping to achieve - or as the upper limit in a negotiating game - like with cars, NOBODY pays the list price it's just there so they can knock 10% off..

To whoever asked, I'm currently renting, and have never owned a house, about half the 120 is available right away, and the rest locked up in investments until november (though I could get it at a push)... I've saved very hard over the last 8 years, and been biding my time for house prices to get to an affordable level. Of course I could get a bigger mortgage, but my feeling is that house prices are genuinely on the downward slope and will remain fairly static for the next couple of years (as per most knowledgable predictions).

I suppose it's a wait and see game, if nobody takes that plot between now and christmas, then I'm sure they will be biting my hand off for the 175... if it goes then I can always wait for the second tranch of houses (which the nice sales lady tells me will only be built if the first tranch is a success - considering the foundations and walls are in place I think she might be telling porkies..)

Doozergirl

That's the key isn't it 'last remaining plots' as opposed to 'just available' plots.

I think you'll be surprised at how many people do pay full asking price. Developers, no surprise, are pretty good at negotiating and won't back down easily. I've rarely had an offer that was more than a little way off asking price. Most people don't have the gumption and many of the armchair buyers on this board that tell you that it's a sure thing have probably never actually dealt with a developer.

We've successfully knocked Persimmon down more than 20% but that was the last remaining plot on the development and it took them about 4 weeks to get back to us. We'd gotten bored by then.

F_T_Buyer

Hi JimJones, your position sounds very much like mine.

I'm currently buying a persimmon home, and did not get a massive discount but boy did I try hard. With the development they started in 2007, and built the first batch which sold. Only in 2009 did they start the remainder of the estate (well, very small estate as it's just a road).

The list prices were very good to start with compared to the rest of the city, i.e. you look for a similar sized house with garage and you will struggle. Now, I'm buying a 3 bed detached house there and compared to all other houses in the city it is very well priced indeed.

I'm getting 22% off peak price, and did try to gazunder when the surveyor down-valued by 10k. I went right to the top and sent an email to the sales director, and they strictly said no and argued it for about a month. I have proof that houses, that are the same size/style/layout but end of terrace, sold for more than mine - so I'm happy I'm getting a good deal.

The way I see it is in a decade or so, the few detached houses will easily command a large premium over the same sized end of terrace houses, and normal terrace houses.

F_T_Buyer

Oh, and I forgot to say they do this homebuy deal where you get 15% interest free loan for 5 years. I never did this, but sent some friends in to haggle the price down and using this scheme... they wouldn't budge from the list price using this scheme.

Oh, and 3months later all houses bar 10 or so have sold.

Muhasib

F_T_Buyer wrote: »

Oh, and I forgot to say they do this homebuy deal where you get 15% interest free loan for 5 years. I never did this, but sent some friends in to haggle the price down and using this scheme... they wouldn't budge from the list price using this scheme.

Oh, and 3months later all houses bar 10 or so have sold.

FT Buyer - what % of the total scheme are the 10 remaining?

Running_Horse

We had similar with a new build development. Advertised as from £180,000, we were told in the sales office those had gone and the price was now over £200,000. Then came the crash and they plummeted in price but we had already bought better for less money. Walk away. If they are indeed overpriced, you will be laughing in a few months. If not, then you can't afford it anyway.

Running_Horse

jimjones235 wrote: »

tells me that the main road isn't a problem because there is a 30mph speed limit (even suggest I counted the number of cars going along it - and refused to accept 4pm on a sunday isn't reflective of the normal volume of traffic),

Buy an established house on a quiet road, probably for less money. If you have noticed the traffic, then so will anyone you sell on to. These people have sold thousands of houses; you have never bought one. No wonder they are running rings round you.

Bufger

jimjones235 wrote: »

I suppose it's a wait and see game, if nobody takes that plot between now and christmas, then I'm sure they will be biting my hand off for the 175... if it goes then I can always wait for the second tranch of houses (which the nice sales lady tells me will only be built if the first tranch is a success - considering the foundations and walls are in place I think she might be telling porkies..)

Have you had a look around and seen what you can get for your money in terms of older builds? New builds always look nice and fancy but they always lack the character you get with older houses, the rooms arent often as roomy and the house wouldnt have settled yet (depending on the builders this could potentially be a nightmare).

Older houses have settled in price so you will be able to find a realistically priced property and be able to compare it.

If you havent already i would go and have a look at lots of different types of houses in your price range to get an idea on whats value for money. You may be suprised at what you can get :-)