No negotiation on new build!

keelylewis

We are thinking about / about to reserve a new build but after speaking to the rep today they have refused to come down from the asking price - at all.

We are using their assisted purchase( they pay hip and estate agents fees) but have had to drop the price we wanted to go on the market for and they are choosing the estate agents. They have said they may be willing to negotatiate depending on the price we get for ours. Our gut is saying - if they can't be flexible in this market then walk away!!

BUT - the house does seem to be underpriced compared to other very similar new builds in the area - I have tried to look at what other houses sold for on the development but bizarrely many of the houses have been sold twice on the same day - first for a price about 2/3rd s of the second price!! Strange.

Does anyone have any advice - Do builders negotiate one they know you have reserved!!!!
Does anyone know what the two different sale prices on up my street are about.

Any help or advice welcomed as we need to make a decision within the next few days. Thanks

bodgerx

If you are using the assisted purchase schemes (and such like) this is typical. Basically, they are already giving you a deal, and its unlikely that you would buy without it, so there is little reason for them to budge.

keelylewis wrote: »

We are thinking about / about to reserve a new build but after speaking to the rep today they have refused to come down from the asking price - at all.

We are using their assisted purchase( they pay hip and estate agents fees) but have had to drop the price we wanted to go on the market for and they are choosing the estate agents. They have said they may be willing to negotatiate depending on the price we get for ours. Our gut is saying - if they can't be flexible in this market then walk away!!

BUT - the house does seem to be underpriced compared to other very similar new builds in the area - I have tried to look at what other houses sold for on the development but bizarrely many of the houses have been sold twice on the same day - first for a price about 2/3rd s of the second price!! Strange.

Does anyone have any advice - Do builders negotiate one they know you have reserved!!!!
Does anyone know what the two different sale prices on up my street are about.

Any help or advice welcomed as we need to make a decision within the next few days. Thanks

keelylewis

Thanks for that. We wondered if that was the problem . I think we would rather put it up for sale ourselves - choose our price and our estate agents - but have to pay the fees. Only risk then is that the house will have gone!! The more I read I think we would be dumb to pay full asking just for the sake of assisted purchase! I really am undecided.

Thanks anyway.

Running_Horse

You have probably missed the generous housebuilder syndrome by a year or two.

keelylewis

Do you think we should just be happy with the 2,000 ish for estate agents fees and hips??? We had such a different impression from the estate agents that valued our house - they told us we shouldn't pay full asking but 2 posts have now said maybe its not too unreasonable if the price seems fair (ish)?

Running_Horse

Don't think I said the price is fair, just that builders are no longer desparate.

How much do you want the house? I'd never buy a new build, but plenty do.

Are you not in a position to sell independently then go back and negotiate from strength?

missile

Might it be that those esatate agents were after commision for selling your old home?

Kyrae

Myself and my partner had a similar situation, we used the assisted sell scheme where builders paid hips and estate agent fees. They suggested a for sale price, and we said no and wanted it for sale at a slightly higher price to match the prices other houses on the road had sold for. They said okay and it sold within a week. Also know we probably wouldnt get that good a price now as builders have since released for sale their own houses very similar to the one we sold, and at only a couple thousand pounds more than ours sold for! So don't be afraid of saying no to the price the builders want you to sell your house for, if you think its worth more based on sold prices on land registry then suggest a higher price. Might even be worth getting a different estate agent out to value your house (not mentioning previous valuations or the builders of course), they'll give an unbiased opinion.

Though you might want to check with the builders to find out at what stage they'll pay for the estate agent and hip fees? We had to pay the fees ourselves from the sale of the house, and then they take the money off the price of the house at completion.

We also couldnt get the builders to knock any extra money off, but weren't bothered as the price was good and only slightly higher than second hand selling prices on the estate next door, and we're happy paying a bit extra to get the worktops, tiles, etc that we want so we don't have to pay extra to redecorate. We did manage to get free carpets and flooring thrown in, so you might have more luck asking for extra freebies, carpets, turf, etc. Or how about asking for stamp duty paid? No harm in asking.

Builders do seem less likely to give discounts at the off-plan stage, especially when they're already doing an assisted sell or part exchange, etc. There's more room for price negotiation once the house is built and standing empty, especially if its one of the last plots to be sold. However, you might find that the house is cheaper at the off-plan stage. On this estate, all the asking prices went up a month or so after after we reserved our plot, some have gone up again since, and some house types have sold out completely.

So my advice would be, if its your perfect house and based on sold prices on the land registry it's a fair price, then go for it, but only put your house up for sale at a price you're happy with.