New Build buying advice

peld

Hi there, this is my first post despite reading these forums for a long time!

My gf and I have been looking at houses for a while but owing to the market, and our lack of deposit, haven't done much about it. We have mostly been looking at new builds owing to some of the offers (deposit matching etc).

We have just found a small estate (just outside Edinburgh) that we are very keen on, as it offers everything we'd need at a very decent price. The estate is about 45 houses (all 3/4/5 bed detached) and run by a reasonably small developer. About 30 are built (and nearly all occupied), and another attractive reason for us is that a couple of the houses wont be complete until next autumn, giving us time to save for a deposit. We are looking to buy a 4 bed, which is currently listed at £231k, and will probably reserve in the coming weeks (£1k reserve fee). To give you an idea of demand - of the 13 houses to be built over the next year there are 10 still available, so not a huge demand at the moment. Also, as the house wont be even started until about March, the developer will let us delay missives (exchange) until about then, which is ideal because it gives us time to see how our finances are going and how the house market is changing (and can pull out if needed).

We will also hoepe to move without any chain, as I will sell my flat in the new year (back in England), and we will keep the gf's flat to rent (which live in now and will do until completion).

Whilst both myself and my gf are homeowners, neither of us have bought a new build, so I was hoping the forum could help us with a few points:

- Firstly, what is the stance on negotiating prices on new builds? Im quite keen to start at £215k with a view to getting £220k. Has anybody negotiated lower, or should I be starting lower?

- As we will be tight on the cash available, im also looking to get stamp duty, legal fees and a snagging report included - is this reasonable? And is there anything I should be trying to get included?

- When should we be negotiating extras (carpets, kitchen trims etc) ? Now, when we reserve, or when we come to exchange (in March)?

- Has anybody negotiated a different house price in between reserve and exchanging? (especially in Scotland). Im just a little worried if the market falls after March leaving us struggling to get a mortgage.

Any other help or tips appreciated!:beer:

poppysarah

Save a deposit. Come back when you've got 10% of the asking price.

LandyAndy

You are looking to buy a house that isn't built yet, I presume, given that you want to move in next autumn?

I don't see a builder offering any discounts at this stage. Why would they?

peld

LandyAndy wrote: »

You are looking to buy a house that isn't built yet, I presume, given that you want to move in next autumn?

I don't see a builder offering any discounts at this stage. Why would they?

Because the house builder gets a reservation and potential sale?
See the point about demand, 10 of the 13 we would be looking at arent even reserved, if they get a few reservations they get some momentum and some selling power.

LandyAndy

peld wrote: »

Because the house builder gets a reservation and potential sale?
See the point about demand, 10 of the 13 we would be looking at arent even reserved, if they get a few reservations they get some momentum and some selling power.

If the houses are already built.

But, if they are not built then they simply won't build them until someone offers what they want.

Buying from a housebuilder can be a very different proposition from buying from a private vendor.

Save a deposit and go back when you are in a stronger position.

peld

LandyAndy wrote: »

If the houses are already built.

But, if they are not built then they simply won't build them until someone offers what they want.

Thats quite true, if they were all unsold, but there are some already reserved that they have to build (3 in our price range, plus several larger more expensive ones).

Also, I dont think ill be finding £20k+ down the back of the couch. We are looking at reserving it now because in a years time it could be an absolute bargain, and we might not be able to find the deposit if the prices increased further (let alone be sure if a plot is available). And if the market falls we are still free to pull out before we exchange.

LandyAndy

peld wrote: »

Thats quite true, if they were all unsold, but there are some already reserved that they have to build (3 in our price range, plus several larger more expensive ones).

So they'll build those.

Probably.

There have been threads on here from people who have reserved houses and then the builder has shown no inclination to build them due to financial constraints. They then find that their agreement with the builder doesn't specify timescales.

peld

LandyAndy wrote: »

So they'll build those.

Probably.

There have been threads on here from people who have reserved houses and then the builder has shown no inclination to build them due to financial constraints. They then find that their agreement with the builder doesn't specify timescales.

They arent going to build two houses and leave an empty plot between them are they? (they havent with the existing houses). And im fully aware of the issues associated with delaying the build.

Im aware of all the things you have said, any chance anyone could focus on the questions in my OP?

tek-monkey

What if prices drop by the time you are in a position to buy, will you be stuck with todays price?

Emmzi

I think people are, you just aren't getting the answer you want.

Would I negotiate with a buyer with no deposit who wasn't in a position to buy? On the offchance i'd underpriced and it'd be a bargain to them in a year?

Not a chance in hell.

i'd negotiate with a cash buyer, someone with 25% to put down, someone I judged would be ready to buy when I'd built it.

Everyone else, I'd say 'thanks for your £1k deposit, I'll keep that when you can't afford to buy it."

Seriosuly, your position is not strong enough to negotaite anything, and builders usually negoatiate only on built, empty houses they need to shift, usually the last street in an estate, not the first.

peld

tek-monkey wrote: »

What if prices drop by the time you are in a position to buy, will you be stuck with todays price?

If the price dropped between now (at reservation) and exchange, we could renegotiate or we could just pull out (may lose reserve fee but probably no big deal compared to a significant price drop).

The concern is a large drop between exchange and completion (say March to October). Was wondering if anyone had managed to negotiate a price change in that period (as this is where its going to relate to mortgages).

If the price goes up we will have got a bargain as it will be on the price at reservation.