New Build buying advice

peld

Emmzi wrote: »

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.

How does the house builder not know I havent got a deposit now? I could have stacks in the bank ?? I wont be in a chain either. Their buying process means I wont need a proper deposit until we complete so they are oblivious to my finances.

So why can't I negotiate?

tek-monkey

peld wrote: »

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.

There was a thread on here last week about just that, think it depends how much the builder wants you bankrupt TBH.

Graham1979

peld wrote: »

- 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?

New build developers are not always keen to negotiate on unbuilt property as they have no need to. After all, if the property won't be built for 12 months, they are in no desperate need to sell. It's normally only completed property that's sitting empty that they'll seriously discount. Also, if you're not exchanging contracts (or the scotland equivalent) until March then you're not really a committed buyer until that date, as you can walk away and only lose your £1k so your hand is weakened for bargaining.

peld wrote: »

- 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?

Stamp duty & legal fees are reasonable to request, but don't use the developers solictors under any circumstance. I'm not sure you'd want the developers to commission a snagging report (there's a risk they'd just find a friendly agent to rubber-stamp it). You can also ask for carpets/flooring and turf/paving to be included in the price as some developers don't include this as standard.

peld wrote: »

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

Now. Make sure these are itemised on your reservation forms so that there can be no confusion later.

peld wrote: »

- 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.

Luck of the draw this one. Some developers will be reasonable, others won't. If you've not exchanged then you are the one in a position of power in a falling market, but some developers can be stubborn and refuse to deal. Worst case scenario is that you walk away with only losing your £1k reservation fee though.

peld

tek-monkey wrote: »

There was a thread on here last week about just that, think it depends how much the builder wants you bankrupt TBH.

Yeah we know thats a risk, and something we hope to get a feel of in the Spring when we would exchange (i.e are prices staying strong or falling).

Also, if the builder was reasonably keen to sell quickly once the build was completed (and given the timing, finish and get off the development) we would hope they might renegotiate. We would get a feel of values too as we'd get a valuation survey done before we exchanged. Otherwise might have to call in a favour or two.

tek-monkey

Unfortunately what you hope and what they want are not always the same. Just think very carefully before exchange.

LandyAndy

peld wrote: »

How does the house builder not know I havent got a deposit now? I could have stacks in the bank ?? I wont be in a chain either. Their buying process means I wont need a proper deposit until we complete so they are oblivious to my finances.

So why can't I negotiate?

Who said you can't negotiate?

I said I don't think the builder will negotiate right now.

Rather than speculate on an internet forum why not just try them with an offer?

ILW

peld wrote: »

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

Blimey, is it 2006 again!

LandyAndy

ILW wrote: »

Blimey, is it 2006 again!

:rotfl::rotfl::rotfl::rotfl:

Emmzi

peld wrote: »

How does the house builder not know I havent got a deposit now? I could have stacks in the bank ?? I wont be in a chain either. Their buying process means I wont need a proper deposit until we complete so they are oblivious to my finances.

So why can't I negotiate?

you can try.

I'll be very interested if you get a different response to what I anticipate. You are obviosuly v keen on this property so I hope you can prove me wrong.

poppysarah

Emmzi wrote: »

You are obviosuly v keen on this property.

Being very keen on a property is one thing when it's a unique old building with bags of character. But if you get off on some shiny new build with all the character of an uncreased carrier bag then that's really something else.