New Build Negotiation tactics (offer made)

Strapped

Have you looked at this one? http://www.rightmove.co.uk/property-for-sale/property-18851649.html

Personally I wouldn't touch St Francis with a bargepole - terrible value, tiny plots. But then wouldn't it be boring if we all liked the same?

SilverSix

You should be able to negotiate stamp duty paid and some money off legals too, which is what I managed.

Rather than focusing on achieving X% discount look at the bigger picture of the price you'd end up paying and how it falls in line with existing builds/sales in the area. As long as you're not overpaying then you should be satisfied.

If your developer is desperate, plots aren't selling or it's near the end of their financial year then you may well get lucky.

I managed a £15,000 reduction, stamp duty of £7800 paid and £1000 towards legals. On the market for £275,000 so I got it for £260,000. It's a detatched build but is joined on to a 3 bed town house on the second storey, same size, nice big garden but semi instead of detatched. For this reason I got a slightly larger reduction than if it had been fully detatched.

If the plots going to sell well then they've no reason to reduce price early on. The particular build I've got there were only about 8 of on the first phase and it was one of two left and they were selling very well.

darrensen

Thanks Strapped.

We've seen that one, not for us. We've actually found something else now and we're just waiting for a call back to view tomorrow.

Thanks to BennyC as well for your reply. We've got a meeting with the Developer tomorrow so we'll see what they come up with. They are very overpriced at the moment, but will be interesting to see what happens when the interest rates goes up.

SilverSix

darrensen wrote: »

Thanks Strapped.

We've seen that one, not for us. We've actually found something else now and we're just waiting for a call back to view tomorrow.

Thanks to BennyC as well for your reply. We've got a meeting with the Developer tomorrow so we'll see what they come up with. They are very overpriced at the moment, but will be interesting to see what happens when the interest rates goes up.

If they are horrendously overpriced and you really want the property then play the long game and tell them when they are ready to advertise their property at realistic prices then you will be interested and that in the mean time your offer of £X still stands. Untill then tell them not to contact you.

A good thing to do is take some brochures from other developers, even if you're not the slightest bit interested, with you so the developer can see you're shopping around and it isn't the first development you've walked on to and plonked a load of cash down. Even just name dropping for different developments & builds etc to make them want your business.

There are the odd few that whill quite happily walk in to a developer pay full whack and get bent over for their rip of- insanely high- upgrade prices. It doesn't happen very often but it's more profit from the developers point of view.

Don't get too attached to it just yet or you'll find yourself justifying overpaying because you really like it.

darrensen

They did ask when we left the other day if we had any plans to see any other developments. There is a new one near by and one just out of town which i said i was visiting.

I'll tell them i've managed to negotiate a considerable discount with one of the other developers and see where they stand after that.

capstain411

Hi Darrensen,

I am a FTB and negociating for new build with strong finances. In all honesty I should admit, I have been a absolute snob. They have called me 11 times in last 1.5 months. I took my MIP with me and "accidentally" revealed what I could afford.

I have extended an offer of 275 + all white goods + stamp duty on property listed at 346k. I was laughed at when I extended my offer, but must be lot of free minutes on their telephone price plan, for them to check whether I would reconsider my offer 4 times inspite of "you must be lunatic to offer that" response the first time. :rotfl:

The house is not ready until end of this year....I would not exchange contract until october even if they accept my offer ( only if house has roof and windows in place) . I would not mind risking losing the property rather then get trapped in new build moneytrap.

My only weak point is I love the area and the plot is fantastically located.

One piece of advise do not increase your offer in response to they saying no. Leave the offer on the table and let them ponder on potential of losing your custom.

On funnier side, when I visited the development the sales rep told me to gauge the general wealth of neighborhood by the number of Porsche and Aston martins parked outside. These car companies must have re designed their logo deceptively similar to Peugeot and Nissan.

darrensen

Thanks Capstain.

We've gonna do exactly that and wait on them. I had to cancel our meeting today with Crest because we're looking at 2 other properties.

If they really want our business they'll get in touch. I have a feeling though they won't have a problem selling the plots though. Our area seems to see pretty well.