Discounts on new homes

gkahome

Hi

Any idea how much manoeuvrability building developers have on price, when buying a new build which has already been built and kitted out?

Any advice would be appreciated.

dimbo61

You can only ask and offer as low as possible and if they show you the door then you might have to offer more.
This is a difficult question because we know nothing about the property or location,cost,size or how keen the builder is to sell.
New estate and first five showhomes fully kitted with 300 more going up in london would be different from last house in estate of 40 properties in NW Scotland !!!

gkahome

Sorry I should have elaborated. It is in Cambridgeshire. The original buyer pulled out close to exchange of contracts/completion so it is ready to move into basically.
The builder has two sites in the village and this is one of the last half a dozen on the first site.
They have offered us part exchange.
Also how long would you wait - don't want to appear too eager....

Richard_Webster

In 5-10 years time it is unlikely that a 5 - 10 year old house will be worth any more than a similar 15-30 year old house so you should look around now at what similar 10-20 year old houses are worth in the area and that should be your guide.

You might pay a little more for the advantage of brand new but you have to decide what that is worth to you because you are unlikely to recoup it when you sell.

If there are enough people out there prepared to buy these new houses then the builder will only knock off what he thinks to knock off to make a sale. If they are not selling at all your approach is "There's one down the road going for £XXX.XXX and yours is smaller/not so well situated/has smaller garden etc etc and therefore I am only prepared to pay £YYY,YYY."

gkahome

thank you for your help

danielley

Check when the housebuilders Financial Year End is , they might be more willing to barter to get a sale in the accounts.

We have been offered a £22,295 discount on a £202,295 listed property because they want the sale by the end of this month. We have been able to get them to take ours at P/Ex, for a decent amount (still 5k under what I would like, but at first they tried 10k under) and they have agreed to put flooring in.

The downside to it is that the kitchen and bathrooms have already been chosen and installed, so we haven't been able to choose them, the kitchen is completely not what I would have chosen, but there you go.

We haven't signed up yet, as I am having some wobbles about generally increasing our mortgage, but it is a sign that the builders are more flexible nearer year end.

Good Luck

mongmoney

danielley wrote: »

Check when the housebuilders Financial Year End is , they might be more willing to barter to get a sale in the accounts.

We have been offered a £22,295 discount on a £202,295 listed property because they want the sale by the end of this month. We have been able to get them to take ours at P/Ex, for a decent amount (still 5k under what I would like, but at first they tried 10k under) and they have agreed to put flooring in.

The downside to it is that the kitchen and bathrooms have already been chosen and installed, so we haven't been able to choose them, the kitchen is completely not what I would have chosen, but there you go.

We haven't signed up yet, as I am having some wobbles about generally increasing our mortgage, but it is a sign that the builders are more flexible nearer year end.

Good Luck

I'm going to offer £180,000 for a 3 bed that's on for £209,950. As I have a house to sell they know the cash is there and I want to completely re-start so need some cash to play with. The housebuilder has agreed to sell my house for me and I'm waiting on the valuation. It all depends on this, obviously. I am keen to move but not at the expense of undervaluing this house. The sales lady openly told me that they need to sell the properties left on the site before the end of the financial year. Hoping I've timed it right. Just try to get as much as you can for the money, flooring, tiling ect.
Mongy

CloudCuckooLand

Keep an eye out for special offers, as developments start or wind up...

Detached houses started from £490k on this site, once.
http://www.telegraph.co.uk/property/3360392/Lytham-Quays-A-home-where-the-Lytham-is-easy.html

This week, in the local paper, advertising a drop from £495k to £320k for specific plots/types.
http://www.rightmove.co.uk/property-for-sale/new-homes/property-8362494.html

Now, they were never worth £495k, but £175k off is some adjustment...

giddypenguin

I think it depends how far into the project they are - we've gotten at 70k reduction on our new-build house - it was the last plot in the development and it was costing the company money as they wanted to move the 'sales consultants' onto another development. Offering on a new build house is different to a normal house as the person your talking to probably won't make the decision - it has to go though x number of managers first...

Kate78

It does pay to be a bit cheeky in this market, but also remember that the "discount" may just be a reflection of how the market has dropped since the prices were published.

I live on a new development, bought my new home two years ago. Asking price was £109,950. I paid £93k. Recent valuation by estate agent (January 2011) was £99,950

The final house on the development is still waiting to be sold - four bedroom detatched townhouse, originally priced at £239,999 now asking £199,995 and since it's been hanging around a while I wouldn't be surprised if they accept less.