New Build Negotiation tactics (offer made)

darrensen

Hi Guys,

Just signed up to the forum, but been a long term reader of threads around here.

Myself and my the GF are going to discuss 2/3 bedroom houses with Crest Nicholson this weekend. I think 3 bedroom properties with this developer are going to be too expensive for us, but probably worth a chat with them at least.

2 Bedroom end of Terrace houses are being advertised for £250k. In the current market what would you suggest is a fair discount on new builds? I was thinking of starting at 13% less. We're in a strong position, being a FTB with finacnes in places.

I guess discounts depend on a lot of things, but one thing against us is the area. We're in West Sussex and prices seem to be holding flat and possibly asking prices rising slightly.

Any advise would be greatly appreciated. I know there's several of you out there that have been there and done that!

Many thanks
Darren

GGB

A lot depends on the timing of the completion.

If you can get a plot that is nearly complete and the company are approaching their year end then you stand a good chance of getting a better discount. I'd also wager that regardless of their year end, the nearer to completion a plot is, them more likely you are at getting a good deal.

I've no idea on your local market to suggest a starting point, but we've just knocked 20%+ off our property with Persimmon so go for that - they can only say no!

darrensen

Blimey, 20%! What percentage did you start negotiating at?

propertyman

GGB wrote: »

A lot depends on the timing of the completion.

If you can get a plot that is nearly complete and the company are approaching their year end then you stand a good chance of getting a better discount. I'd also wager that regardless of their year end, the nearer to completion a plot is, them more likely you are at getting a good deal.

I've no idea on your local market to suggest a starting point, but we've just knocked 20%+ off our property with Persimmon so go for that - they can only say no!

Absolutely right, go for the available one. But beware that the price includes the fit out eg washing machine stove etc.

And do take a tape measure, for many years builders have fitted out the show houses and built them to be a little bigger than they appear and than the one you eventually buy.

Measure what you are buying, and map out your furnishings to make sure you and they will fit.

darrensen

Well we've been to see the showroom today and we've decided that we are gonna put an offer in.

The 3 bedroom detached is up for 305k.

They offered 5% without me even asking for a discount! Maybe I'll start at 20% and see where we go from there. Is that unreasonable do you think?

We're probably in One of the best positions you can be in, so massive benefit for them.

Property won't be built until oct though, but that's no major issue for us.

Any advice greatly appreciated.

myhouse_2

Personally I'd be looking for 20% discount plus a bunch of extras (carpets, fittings etc). That in my view is generally the true value of the houses, though I imagine most builders won't agree with that (yet). Whatever you do, push hard for everything.

darrensen

Well that didn't go well. Even with our strong position and funds in place it was a falt NO at 19% off the listed price.

We offered 245 and i asked if i raised to 249,950 would they consider they said no.

Not really sure what to do now. Looks like back to the drawing board. Very depressing. :-(

Doozergirl

darrensen wrote: »

Well that didn't go well. Even with our strong position and funds in place it was a falt NO at 19% off the listed price.

We offered 245 and i asked if i raised to 249,950 would they consider they said no.

Not really sure what to do now. Looks like back to the drawing board. Very depressing. :-(

You have to try a bit hard than that. These people do it for a living and it isn't personal for them either, so you have to appreciate that they are not going to roll over. It might be that they will never accept that price. They give the deals on the houses they are struggling to sell -after they've been built and they're just sitting there waiting. And then they won't be the best plot either.

If you want best value from a house, then go and buy one that someone has already lived in. That's the way you will find space for the money without trying to knock 20% off the price just to buy it for what it's probably worth.

It took 4 weeks for us to have a genuine cash offer accepted that was 20% below a developer's asking price. By that time, we'd found somewhere else, but those houses were only ever worth what we were offering. It was five years ago and none of the houses have ever sold again for more than what we were offering.

darrensen

We're going to go and see them on Wednesday to discuss things.

I don't expect we'll agree on a price, but maybe it's worth waiting until it's built and see what deal they'll do. It isn't due until Sept, so maybe the market will dip some more by then.

I thought that there would be a bit more than the 5% they have already offered.

Strapped

Is this St Francis by any chance? If you looked at Burgess Hill instead you'd almost certainly afford 3 beds.

ETA: Actually, it seems you would in Haywards Heath too - quick glance at Rightmove shows 3 bed detached houses in good nick under £250k.

darrensen

Yeah it is Strapped. We have looked at B'hill but would rather stay in HH.