Another new build topic...

shar46y

Hi all,

I have been reading through the many discussions on buying new build and get the impression that people often manage to get big discounts or lots of extras?

We never thought we would be buying a new build, but having had offers rejected on several properties, the next best in terms of location, layout etc is a new build house. It is the last available of a very small development (only 6 houses) in a desirable location, all the others have been sold/reserved. The asking price is £335K and the developers/agents have been giving the impression that they won't entertain 'deals' because the development is so desirable!

So... how much is a reasonable offer and/or what sort of extras could we request? I think we are in a fairly good position - have sold our place to a FTB subject to contract (and are in fact searching for a short-term rental because our buyer wants to complete ASAP) so will hopefully be chain free soon, will need only about 50% mortgage.

Can't post link because I'm a new member, sorry.

Thanks!

brit1234

I'm sure they will throw in anything you want, they can afford to. The reason for this is they are so overvalued they make a big profit. Its because they are overvalued lenders also require bigger deposits.

Personally I would go for a second hand property every time, they are cheaper and have bigger rooms. You may have to for a little modernisation but you will get a far better quality home.

I think during the next year you will see a flood of houses coming onto the market from people who's consent to let has run out after the 2008 price falls. I would keep trying 2nd hand in the mean time and put new builds to the back of your mind.

CLAPTON

when you sell it then it will be second hand
so simply price it as if it were second hand and make an offer based on that

shar46y

CLAPTON wrote: »

when you sell it then it will be second hand
so simply price it as if it were second hand and make an offer based on that

Based on our experiences trying to buy secondhand houses in this area? We'd have to offer them £350K!:D

Kyrae

Realistically... it completely depends on how well the houses are selling and how desperate the builders are to sell the houses. The biggest price reductions seem to happen when there are houses finished that have been standing empty for a few months, and houses become even more reduced when its the last couple of plots on the site and the builders want to sell up and move on to new building sites. There are also some reductions to be had buying off-plan when the site is brand new, and the builders are keen to sell the first few houses to make the houses appear more desirable to other buyers. We bought a new build last year and reserved at the off-plan stage, didn't get any money off the price of the house, just got the estate agent fees paid for selling our previous house, and carpets thrown in for free. The pattern on this building site seems to be they release the prices at the off-plan stage... raise them by 2-10k while they're being built... leave them at that price for a month or so after theyve been built... then start reducing them the longer they stand empty. I've seen houses here being advertised £195k while being built, and now a couple months after theyve been built and standing empty and no one is buying they're up for £175k. Another way to get a cheap deal, buy an ex-showhouse that's already decorated you get all that thrown in for free and they seem to give a good discount on the price.

That said, looking at the sold prices on the land registry, the most a buyer managed to haggle them down on the asking price was around £10k so they're not knocking all that much off prices, unless theyre giving tons of freebies or paying extra on part exchanges to make their sales figures look better!!

Hope that gives you a bit of an insight into pricing, don't be too disappointed if you can't haggle much money off it really does vary from place to place and how desperate the builders are to sell! The important thing is whether or not the price is fair in comparison to sales prices of second hand houses on nearby estates. As for extras throw in, you can try for anything really... carpets, turf (not always a good idea as they tend to put down really cheap stuff), fitted wardrobes, white goods like fridge, dishwasher, washing machine, etc!

BadgerFace_2

brit1234 wrote: »

they are so overvalued

You don't call a car overvalued when it's new, so why do people with a house? I know what, you're saying in that you pay a premium based on having the house built specifically to your specification, having warranties etc. But does that mean it's overvalued...no, it's just a different product to a second hand house, which could have significant dormant problems (though, so do some of the new builds I've seen!)

brit1234 wrote: »

Personally I would go for a second hand property every time, they are cheaper and have bigger rooms.

I think you can only really comment on the size of the rooms after you've seen the house...but I would definitely suggest comparing them to what you could pick up for the same kind of price range with an older property.

WelshNic

If you stay away from the box shifters you can get a good new build, with larger rooms, high ceilings etc.

Don't be drawn in by the usual rhetoric when it comes to new builds.

If the development is small and selling, just go for as many extras as you can and don't be surprised if you don't get a discount.

Good luck

CLAPTON

BadgerFace wrote: »

You don't call a car overvalued when it's new, so why do people with a house?

well actually, most of us do call new cars over-valued........

shar46y

Spoke to the agents this morning and was categorically told that the developers will not accept anything below £330K and really are expecting full asking price. Oh well, back to the drawing board.

tattyuk75

As a lot of people have said, it's all about the timing. It sounds as if they have got a lot of interest in the remaining house and therefore don't have to offer any sweeteners at this time, but that may change as time goes on if interest ebbs with no sale. If you like the house then just keep in touch (if my experience is anything to go by, the developers will be on the phone every five minutes if they think a sweetener will get a sale) and have hypothetical chats to test the waters.