Negotiating on a new build

losborn9

Hi all
I have been reading all the threads on here, and bearing in mind all the comments that money off is much better than freebies, etc etc.

I want to put an offer in on a new build that has £250k asking price.

They are offering free carpets and stamp duty paid (last plot remaining) it already has an offer on it, but from someone wanting to px so as I'm in rented, first time buyer I'm in a better position.

I have checked online. The other (same) houses on this plot sold for:
£215,570 (mid terrace)
£225,000 (end terrace)
This is the exact same house internally, but semi detached so I feel it's prob worth slightly more than the above valuations.

The builder has said already I can have 5% discount to use however I want (freebies, cash off, etc) Which takes it to £237,500. (Presumably this is not to be combined with the free carpets/stamp duty although I guess I can ask for both deals.)

my real query is -
Do I
1) Go in at a lower offer (£222k to start?) max cash off (and then outlaying thousands more on appliances etc ) I am concerned I'm pitted against someone already so don't want to go too low and miss out.
2)Make a bigger offer (£231k) that could potentially secure me the house, and ask for every extra going?
3)Should I be upfront and say I can either pay like £222k or for £231k I'll buy on the condition they give me carpets, stamp duty, fees, appliances, lawn, flooring and an alarm?

I think I would actually prefer to get more freebies as the larger mortgage payment will only cost me about £50 a month more and I'd plan to overpay the mortgage so I don't end up paying for it all over 30 years. This wouuld certainly make the short term easier and allow us to save incase the int. rates shoot up.

Does this make Moneysaving sense?
I'm not sure how upfront to be...the way I look at it I have to outlay housands for stamp duty, fees, carpets anyway so I don't ultimately care whether I pay the builder or individual retailers for these.
(I am conscious that builders put a mark up on everything so if they say carpets are worth £3k I will push back that they're only work £1.8k to me etc; I have put a value next to every freebie so I would be able to weigh up any counter offer they give me I guess)

arrghh, how much do I give away? I don't want to discredit myself, but at the same time I do know people that bought earlier on, on this site and got £75k off their houses (25% off)

periwinkl

We're in pretty much the same position (just different numbers); funny thing is the EA offered ZERO extras. The place is completely unfurnished and only after much pushing (because we want to price things up) did she find us a furniture package brochure.

She did offer either 5% towards deposit or asking price though, so I've taken that off the total and going for a 20% reduction from there.

We figure that if the first offer always gets rejected on principle anyway then why not go in as low as possible and leave them hanging?

We're in a strong position and want to make the best of it - just not sure now as there is literally no 'freebies' to play with. Except stamp duty - may ask about that.

To the OP - seller may be happier throwing in freebies to keep the prices higher on the land registry / other searches, means the value stays high.

Any more thoughts on this topic v welcome!

RobertoMoir

losborn9 wrote: »

Hi all
I have been reading all the threads on here, and bearing in mind all the comments that money off is much better than freebies, etc etc.

I want to put an offer in on a new build that has £250k asking price.

They are offering free carpets and stamp duty paid (last plot remaining) it already has an offer on it, but from someone wanting to px so as I'm in rented, first time buyer I'm in a better position.

I have checked online. The other (same) houses on this plot sold for:
£215,570 (mid terrace)
£225,000 (end terrace)
This is the exact same house internally, but semi detached so I feel it's prob worth slightly more than the above valuations.

The builder has said already I can have 5% discount to use however I want (freebies, cash off, etc) Which takes it to £237,500. (Presumably this is not to be combined with the free carpets/stamp duty although I guess I can ask for both deals.)

my real query is -
Do I
1) Go in at a lower offer (£222k to start?) max cash off (and then outlaying thousands more on appliances etc ) I am concerned I'm pitted against someone already so don't want to go too low and miss out.
2)Make a bigger offer (£231k) that could potentially secure me the house, and ask for every extra going?
3)Should I be upfront and say I can either pay like £222k or for £231k I'll buy on the condition they give me carpets, stamp duty, fees, appliances, lawn, flooring and an alarm?

I am concerned I'm pitted against someone already so don't want to go too low and miss out.
- Why? Is this the only house for sale in the town or something? Seriously... do you want "a" house or is there something special and magical about this particular one? The answer to that question should help you evaluate how low you want to go and risk "losing" the house.

You talk a lot about asking price. I've not see you mention cost of similar properties in the area. I mean besides others the builder has sold themselves on the same plot.

Lastly, forget the extras. Seriously. By all means get all you can out of them and good luck to you but don't let them enter your calculations on the worth of the property. You're talking about paying the best part of a quarter of a million pounds for something; the few hundred a few carpets is likely to run to shouldn't even be on your radar.

Owain_Moneysaver

An end terrace is practically the same as a semi-det, and the housing market is in a slump, so start at £225k and the same package of extras as what the other buyer got. It's much easier to fix a price and then chase the extras - because as you say the extras will cost the builder a lot less than retail, so it's an easy give for them.

And there are other houses around, and they've spent out loadsamoney building this and want to get some spondulicks in their grubby paws ASAP. Seriously, if they are desperate enough to sell that house they'll give you a car.