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

jimjones235

I was looking for some advice...

In a local town a developer (persimmon homes) has just finished building and selling a selection of homes on a site, they have a couple of plots left (which aren't suitable) but they are offer massive discounts. They have a new site down the road, for completion in december - and I've seen an ideal plot, which they are building a perfectly sized 3 bed detached on (so far so good).. I'm a first time buyer with 120k deposit and won't find getting a mortgage a problem.

They listed this plot as 199k and said there would be a 10k cash back offer (which I don't want! - I just want a better price). So I took the details and went away, when I called them to place an offer, they said the price had been raised to 209k?! but I could still get the 10k cash back... So I said "let's not mess about forget the incentives, I'll offer 165k and can pay a 10% deposit today" - the annoying lady at the site said she would have to speak to her sales manager, and she came back and said they wouldn't budge from the 209k price!? I pointed out they are offering a part-ex service etc - which I don't need so would expect that to be reflected in the price, but reluctantly offered 175k.. which again was rejected saying "we are sticking to the list price"...

Now, I'm utterly confused.. you would think they would be desparate to sell houses, and can't help but feel the the sales assistant is giving me the run around. Nobody pays the list price do they? I'm not asking a lot just for them to stick to the price they gave me, inclusion of the incentive in the price (because I'm not part-exing), and a 8% discount..

Any suggestions?

juliescot

If they don't want to sell you the house at the price you want to pay then that's that.

Why not visit the site rather than chat on the phone and see if they are willing to negotiate.

Try not to think of her as "annoying" mind you - might help.

housebuyer_abc

jimjones235 wrote: »

I was looking for some advice...

In a local town a developer (persimmon homes) has just finished building and selling a selection of homes on a site, they have a couple of plots left (which aren't suitable) but they are offer massive discounts. They have a new site down the road, for completion in december - and I've seen an ideal plot, which they are building a perfectly sized 3 bed detached on (so far so good).. I'm a first time buyer with 120k deposit and won't find getting a mortgage a problem.

They listed this plot as 199k and said there would be a 10k cash back offer (which I don't want! - I just want a better price). So I took the details and went away, when I called them to place an offer, they said the price had been raised to 209k?! but I could still get the 10k cash back... So I said "let's not mess about forget the incentives, I'll offer 165k and can pay a 10% deposit today" - the annoying lady at the site said she would have to speak to her sales manager, and she came back and said they wouldn't budge from the 209k price!? I pointed out they are offering a part-ex service etc - which I don't need so would expect that to be reflected in the price, but reluctantly offered 175k.. which again was rejected saying "we are sticking to the list price"...

Now, I'm utterly confused.. you would think they would be desparate to sell houses, and can't help but feel the the sales assistant is giving me the run around. Nobody pays the list price do they? I'm not asking a lot just for them to stick to the price they gave me, inclusion of the incentive in the price (because I'm not part-exing), and a 8% discount..

Any suggestions?

Persimmons very rarely discount on new estates. They will after 18 months but this early on no way.

jimjones235

juliescot wrote: »

If they don't want to sell you the house at the price you want to pay then that's that.

Why not visit the site rather than chat on the phone and see if they are willing to negotiate.

Try not to think of her as "annoying" mind you - might help.

I did visit the site.. She is "annoying" because she keeps giving me different prices, telling me the 3 bed house is the "same" as the 2 bed house, 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), tries to suggest that 10000 to spend "however you choose" must be spent on advertising a part-ex.. and so on..

But I know what you're saying, I just can't help but feel that it's all somesort of negotiating ploy..

juliescot

jimjones235 wrote: »

I did visit the site.. She is "annoying" because she keeps giving me different prices, telling me the 3 bed house is the "same" as the 2 bed house, 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), tries to suggest that 10000 to spend "however you choose" must be spent on advertising a part-ex.. and so on..

But I know what you're saying, I just can't help but feel that it's all somesort of negotiating ploy..

If it is a negotiating ploy then negotiate away.

If they won't come near to your offer then walk away.

Muhasib

Have you asked why they changed the price, is the original price on any literature or written down? Is it justified by your local market, i'm estimating that they don't need to consider discounting as the development is as you say 'new' so they are not at that stage yet where they want to close down the sales office and show home. They may also feel that prospective homeowners will believe all the positive type spiel on hosue prices so that they will have confidence to show an interest and buy from this development

You might want to ask them about where or if there is social housing is located and which housing association they are dealing with which will allocate to their residents.

missile

You might want to speak to your solicitor. He may be able to negotiate a deal on your behalf.

natman

Hi,

To be honest I also personally think that over the last say 18 months house builders have been kicked down with house prices - some people may think that they deserved it etc. However prices have fallen very badly for the last 16 months or so, until very recently.

I bought a new build (not from persimmon in January 2009) i offered a lower price and had a part exchange and got a really good deal, but I know others who have looked at buying same house and they got no discount recently - i.e last 3-4 weeks ago.

suppose the trend at the minute is on the up -
Reports that house prices are at least stabalising and not dropping.
More Money available in Mortgages than 8 months ago.
Builders will realise this and there may be a bit more competition with houses so builders can afford to hold out a bit.

My issue is you have 120k deposit - which is a fine deposit to have. I would perhaps have a last discussion with them highlight your position with mortgages and your deposit etc, if they are not willing to budge i suppose you have two options -
1. Put a offer in get the process started, get a professional valuation and see what the valuation comes back at
2. Walk away with your 120k, and look for something that you feel is worth the money.

I know you mention that you dont want part ex - but do you have a house to sell? have you sold? are you renting - i.e is you 120k wrapped up in a property or is it cash available??

I suppose all i am saying is - with 120k deposit you should be in a very strong position to obtain a deal your happy with. The Market has changed however (as far as all the signs seem to indicate).

Keep us updated..........

getmore4less

jimjones235 wrote: »

I was looking for some advice...
...........
They listed this plot as 199k and said there would be a 10k cash back offer (which I don't want! - I just want a better price). So I took the details and went away, when I called them to place an offer, they said the price had been raised to 209k?! but I could still get the 10k cash back... So I said "let's not mess about forget the incentives, I'll offer 165k and can pay a 10% deposit today" - the annoying lady at the site said she would have to speak to her sales manager, and she came back and said they wouldn't budge from the 209k price!? I pointed out they are offering a part-ex service etc - which I don't need so would expect that to be reflected in the price, but reluctantly offered 175k.. which again was rejected saying "we are sticking to the list price"...
.....

"we had this annoying lad in today told us he had a £120k deposit for one of our £200k houses, smart !!!! thought he could offer £165k told him to sod off, he then offered £175k almost imediately, clearly he can afford more, we have a few month to wait, lets see how high he will go if he wants this place"

missile

To be honest, I am not surprised they gave OP a knockback. After putting in such a ridiculous offer they will have him flagged as a time waster.

Emmzi

22% discount is a lot to ask them to take off! Personal opinmion, it's a bit too cheeky, and now you've got yourself plagged as a time waster, they may be reluctant to look at further offers from you as seriously.

I'd look for something more in your price bracket.