Discount Off New Build??

CvPiper

Can anyone give me some vague idea of what sort of percentage I could expect a builder to negotiate on a new build.

We are not in a chain, and looking at homes circa £250,000, with approx £125,000 deposit, so mortgage is no problem at all.

I have looked at completed prices on the same development, but can never tell if they are the same type house.

Thanks in advance.

CloudCuckooLand

0.1% to 30%+

Vague enough ?!

The first few plots on a site, they may let go relatively cheaply to get the site underway, then they will hold out for more if the turnover has been good.

If you want a specific plot, you may have to be quick and therefore not be able to sit waiting for it to drop in price, to get it ahead of other buyers.

The show-home may command a premium if its extra large etc, but equally could go relatively cheaply if late in the development and the builder wants to close down the site.

Some sites which are say 2/3rds complete, may start to be sold off to Housing Assoc or similar, to shift the remainder. This might be a clue that you can pick up a bargain, or it could indicate a drop in the quality of resident - if the HA rents them out, the population turnover can affect prices, for example, there being less "pride" of permanent residents.

You are going to have to do more research on the plot-types vs sold prices...

kaych

I think 5% off as a minimum, the rest depends on how desperate they are to sell and how much you want the place etc...

danielley

My friend got £15-20k off a £180k new build property. The house was already built and she was in a good position like yourself.

I have heard a rough estimate that new builds prices are calculated by 1/3 being land cost, 1/3 being build cost and 1/3 being profit.

I say go in at £220k if you really like the house and stress your strong position.

CvPiper

Thanks for the different feedback - shall be speaking to them this week and get a feeler for their flexibility!