Haggle on price of new build

andusbeckus

Hi,

Me and my partner are looking to buy our first house and have looked at new builds. Phase 1 of the build is nearly completed with phase 2 due to start in July.

We have a £40,000 deposit and are not in any rush to buy. We can borrow up to £135,000 but don't want to borrow the max.

The house I am thinking of is priced at £174,995 and it is a Taylor Wimpey build. What is the possibility of us getting a decent percentage off say 15% - 20%?

The minimum we would consider buying it at is with 12% off at £153,995.

I can't find any info on how much any of the other houses have gone for either.

Thanks in advance for any info,

Andy

jimpix12

As it's Taylor Wimpey it's probably on a large estate, where the resale value of second hand builds plummets (nobody is going to buy a 'used' house when they can get a new one for a bit more).

Case in point, the Rightmove link doesn't work and it's possibly in another area to where you are, but new builds are selling for £420k:

http://www.rightmove.co.uk/property-for-sale/new-homes/property-32869777.html

I saw a 8 month old one for £350k and they couldn't sell it so took it off the market presumably. It's definitely not sold, so a 16% loss in less than a year.

If you're buying make sure you don't use Homebuy etc. You could probably get them down to 12% with some haggling as you're in the 1st phase they want people to move in so they can confidently build the rest. They'll give you 10% off easily, anything above that you're probably diminishing the salesman's commission! I'd push for 15% personally.

Admittedly all of the above is anecdotal; if there are other similar estates nearby I'd suggest looking at new vs. used prices on those, even if it's another developer.

pinkteapot

The best way to get a discount on a new build is after its finished. If people are buying off-plan, you're unlikely to get them down by much on price. Once built, they become a lot more desperate to free up the cash and move on.

I had a friend who bought a new-build originally advertised at £250k for £168k, but it was a much smaller builder than Taylor Wimpey, the development was finished, and it was shortly before his financial year-end.

Have you looked at what you can buy 'second hand' for the same price? The value of a new-build does plummet straight after you buy it so you should be pretty certain you'll be happy living there for at least 10 years. With a pre-owned house, the value won't drop the day after you move in. Build quality of some new-builds is also pretty shocking compared to houses built say 20 years ago (that are still fairly new and don't come with the problems of really old houses).

If any of the Phase 1 ones are up for sale already, view them. Much better to see an actual house in the development rather than the show-home.

DominicJ_2

There 5 new builds near me.
The one remaining is on rightmove for £215k, never been sold
One of them, the first, went for £280k, two more went for £250k

You're much better buying the last house rather than the first one.

jimpix12

It depends on the area and the developer of course. I bought my house (last one to be completed on a small development) with a 6% saving, the others didn't get any discount. But then it's apparently a desirable area and was well priced.

Likewise another local builder sold 5 of 6 new builds before they were even half-done, the last 1 remained for about 6-7 months on the market unsold, and finally sold at 18% below asking. These are in the South East.

andusbeckus

Thanks for the replies,

The build is in Rotherham, South Yorkshire and when I went to view the other day they offered 5% off a smaller one without me even saying anything. Thing is there are 4 bedroomed detached houses going for £175 on a 15-20 year old estate about 100 yards away. So £175,000 seems rediculous for a 3 bedroomed semi.

I will go back and look what sort of stage they are at with selling the houses.

terrierlady

developers usally offer 15% to investors so you would be lucky to get that between 5-7% is normal or goods in leu but take cash discount every time as white goods and carpets can be brought cheaper. Good luck dont chase them let them chase you for the sale/

andusbeckus

I have also looked at a 4 bedroom detached within 1/2 a mile for £140,000 should i mention these prices when I talk to them.

Whats the best approach to take should I just come it with it and ask what they can give?

DominicJ_2

Buy the 4 bed detached.
They'll never price match it.

Jibjab_2

Did you ask the person in the sales office, I recently looked at a Taylor Wimpey house and the sales guy was very open. the house was on for 215k and he said they needed to achieve 190k to get the right % profit. Its a new build, start low would be my advice!

pinkteapot

A new-build will cost you more than an older house. You simply won't get a new-build the same size as the 4-bed detached for the same price. As soon as you move in, the new-build will drop in value to the same as other similarly sized/located 'second hand' properties.