"Flexibility on price" with a new build

blt

Hi everyone,

Until I came on here, I had no idea people managed to get new builds at a lower price! Soooo, as I am clearly so wet behind the ears, I was looking for some advice from those who have managed it.

I am looking to part exchange my house with a new Redrow home priced at £216,995. Ideally I woiuld have liked to sell my house through an EA (I thought this would give me more bargaining power- is that right?)

What kind of price would you go in at? We're looking to reserve early on as we know these house types go quickly (the developer resubmitted the plans to swap other house types to this one).

Or, is it that you can nab extras like carpets, blinds etc?

Any advice from someone who has done this would be most appreciated. Thanks :beer:

FATBALLZ

Offer either what you think you can get away with, or what you think it is actually worth, whichever is lower. Paying more is silly. And if you don't ask you don't get.

WelshNic

I think it's unlikely you'll get a monetary discount if part exchanging, they'll usually throw carpets/tiles in, ask for white goods if not included and they may pay your stamp duty - ask, you have nothing to lose!

blt

Thanks for your help - my main query was whether we were more likely to get 'extras' than a reduction so you've helped a lot. A lot of items are included as standard, but I am going to have a look at extras like having the back garden turfed and see what else I can wangle.

Am I right in thinking we would be in a better negotiating position if we didn't have a part ex?

pawlala

see if they'll pay for the freehold, I asked and I got! £6000 worth!

nearlynew

Whatever you do, forget about the "extras" and negotiate on the price of the house alone.

Then, remember that builders are deperate to sell so start at about 70% of asking price and do not pay more than 80%.
Assuming there is plenty of choice of other newbuilds locally, you will definitely get a bite.

Doozergirl

nearlynew wrote: »

Whatever you do, forget about the "extras" and negotiate on the price of the house alone.

Then, remember that builders are deperate to sell so start at about 70% of asking price and do not pay more than 80%.
Assuming there is plenty of choice of other newbuilds locally, you will definitely get a bite.

You can bargain hard without a part-exchange and walk away if the price isn't the one you want to pay, but with a part exchange you have to realise that there is cost involved in getting rid of your house still and that either way, it's you that should be paying it.

We've got someone who wants us to take a part exchange at their idea of full market value (ie. the house across the road hasn't sold in 9 months at that price), expects us to incur all the costs associated with not only selling it, but buying it off them in the first place, and then expects to get our house (which is not an inflated new build price) at a knock down price. It won't happen.

Cash is also what talks massively to developers, as does bulk buying! But going there needing a mortgage, bringing a part-exchange with you and expecting big discounts sorts of puts you waay down their list of hot buyers. If they are struggling to sell then you might get a deal, but don't expect bargains, there aren't really enough houses being built at the moment so they're unlikely to have surplus stock and will hold on for a better price to that which they are producing.

I certainly wouldn't 'expect' to do a deal at 80% if I had the cash in my pocket even, though I'd give it a go!

Running_Horse

nearlynew wrote: »

Then, remember that builders are deperate to sell so start at about 70% of asking price and do not pay more than 80%.

Is that on planet 2008?

blt

The 'problem' (if you can call it that), is that I know these houses are being snapped up. We tried to get one in the first 2 phases with no joy. It's a bit of an unusual one in that it is a brand new village that's being built, complete with supermarket, primary school etc etc. There are 5 housebuilders there, each with about 3 'sites' of different house types/prices etc. The ones we want are really popular :mad:

WelshNic

What site is it?

We've bought new build twice before and did end up p/xing for the last back in 2003. As said above, enough new homes aren't being built and the days of developers screaming to off load them are long gone.

We're about to put our current house on the market and but a NB again - probably Redrow - but won't qualify for p/x. What's your expected value of your current property vs the NB? They won't let you reserve unless you've sold your current property but I guess you already know that?

I really don't think they'd flinch at turf, I'd try and get the flooring thrown in also.

myhouse_2

WelshNic wrote: »

What site is it?

We've bought new build twice before and did end up p/xing for the last back in 2003. As said above, enough new homes aren't being built and the days of developers screaming to off load them are long gone.

Really?? I have to say that I can't remember a time in recent years when developers were screaming to off-load their houses.
The ones round me are sitting at exactly the same outrageous prices as they were when they were put on the market 2 years ago. No one has bought them in all that time and in my view, they are no longer "new".
But builders need to maintain profits and an updated marketing model of selling more at less would be better than much less at more. I think the time will soon come when we will see developers being more flexible, but this spring is probably not the best time. Buy at builder's financial year end rather than spring when they are over-optimistic.