Could I negotiate the price of a new build if I part exchange?

Jesamine

Hope someone can help!

We looked at a new build house yesterday. Because it was the last remaining plot there was no-one on site to talk to. The developer (Barratt) are offering a part exchange on the property (selling price £250k) which is more than I'd like to pay.

Are they likely to negotiate on price at all? Has anyone any experience of this? I've found out that two similar properties on the development sold in May for £249k and £245k.

asharon

When I looked at new builds , and am sompleting on one in the next few weeks, I found that if the price was around 250 then you could look at paying around 235, which I did. I put offers in on two developments of the same price and both came to the same point of agreeing. It does depend upon your position, I am a cash buyer and with a part exchange it may well afeect it.

However, there is nothing to stop you making an offer and always start lower than you are willing to pay because the price only goes upwards.

IHateDida

Jesamine wrote: »

Hope someone can help!

We looked at a new build house yesterday. Because it was the last remaining plot there was no-one on site to talk to. The developer (Barratt) are offering a part exchange on the property (selling price £250k) which is more than I'd like to pay.

Are they likely to negotiate on price at all? Has anyone any experience of this? I've found out that two similar properties on the development sold in May for £249k and £245k.

Yes - you can negotiate. How did you find out what other houses went for? I only ask because if you used the prices that they show on websites such as Rightmove and other property sites - the price can be what the original house was advertised for. Builders have a sneaky way of showing "inflated prices". For example - we bought our new build house for £228k a couple of years ago - but on Rightmove - the price that we paid shows as £245k (what it was advertised for). So make sure you use any price information carefully! They do this apparently to keep the prices on the development high!!!!!

We were going to part exchange and again - we could have still got a price reduction on the house - but we ended up selling to a private party as we would end up £3k better off (as they were offering more than the builder was).

kevinyork

In our experience accepting a part exchange deal will severely limit your scope for negotiating a further discount. New house builders tend to have a set of options to offer such as part ex, stamp duty paid, deposit paid, free carpets etc but dont usually combine the offers unless they are maybe at the end of a development and want to get off site.

The new developments in our area have started to increase their prices in the last few weeks so flexibility on negotiating a discount may start to reduce further as the market turns.

tootsmyboots

We looked at a Persimmon house as they are offering part ex on an estate they are struggling to shift houses on. They were willing to take our house as part ex but told us there was NO negotiation on price as the part ex is their "deal". As we will be complete cash buyers once we have sold our house we told them no (we have the cash to buy a house, but need to sell ours to pay off the mortgage). They indicated that without the part ex we would be looking at getting 50K off the price, but with part ex, nothing. SO we told them no and they didnt try to negotiate.

As it isnt our dream house we arent really upset, we just thought we could move quicker if we did part ex.

We are just staying put until we sell ours. Got some viewers next week anyway so staying hopeful.

Jesamine

Thank you to everyone who has replied, it's been very helpful.

I found the prices out by looking at nethouseprices.com, so I think they are fairly accurate?

The property is the last one on the site, so maybe they'd do a deal if we could get hold of anyone to find out! (the sales office has been cleared out, the other properties are occupied)

Please, has anyone got any advice on what figures to approach them with? (Two of the six similar properties sold in May for £245k and £249k on an asking price of £255k, not sure about the others) I think our property is worth around £180k at the moment. We have around £25k in equity and £30k in cash. DH works for a bank so qualifies for a 90% staff mortgage for around £200k.

Thanks again!

Treadmill

You certainly can get a discount if you part exchange, I part exchanged with Persimmon and got them down from £219'000 to £175'000 with my house as part payment, I also got free carpets and all the other stuff because I told them that the deal would be stretching me and if all the extras where not included I would not be in a position where I could afford to move.

If the property you are after is the last one the discount could be substantial, the last house on the development where I live went for £229'000, it was originally priced as £329'000, by the time they are selling the last house the development is in profit and they will be keen to move on.

I'm currently negotiating with persimmon on a new house (yeah mad I know) and part exing this one, Its amazing what you can get if you hold out, as long as you are in a position to move, get your Mortgage AIP in places o its clear you are not time wasting.

Offer them £200k, they can only say no, or come back with a counter offer. Looking at the figures though, you normally need to be buying a house at least 30% more than the one you part Ex

tootsmyboots

That's interesting Treadmill, did you see my post where Persimmon were unwilling to negotiate with us? Must be different on different sites as we didnt need a mortgage to pay for the rest of the house and it was a point blank no movement on the asking price, not even a few thousand! Glad it all worked out for you though. Think it was the right decision for us though, as the house wasnt our preferred option, just would have been nice to be moved before Xmas as we need more space.

itsakidsworld

If you can get hold of someone- maybe try the website- then have a chat and see what they can come up with.

If your house is worth £180k then it is unlikely they will exchange with yours for much less-although worth a shot? Offering £200k which would be yours plus £20k would not work as it is too near the new build price and quite honestly would be a wortheless excercise for the builder but you never know. Maybe around the £230-£240k mark will make them interested!

If it is the last one they may not be that interested in a low cost exchange as they have their site complete and the last one will be all profit(hopefully) so they can sit tight.

Good luck