Is it possible to negotiate on new build with 5% deposit?

Nenen

I have read lots on here re buying new builds and a bit about the 5% deposit scheme and passed this info on but my son has asked me for specific information and I would appreciate any advice.

My son and his gf (both in their mid 20s) are currently renting a house together and are interested in buying a new build house off plan (Taylor Wimpy development in St Ives, Cambridgeshire) as their first home. They have a 5% deposit plus some money saved for fees, moving costs etc. The sales rep is adamant that as they are buying with the 5% deposit scheme there is no room for negotiating the price of the house (just over £200,000 for a 3 bed terrace). However she has agreed to include floor covering worth around 2K. She says that this is the best deal she can do.

My son and his gf would like some additional extras included to clinch the deal; in particular they would like a kitchen upgrade to include all integrated appliances and extra bits and bobs (cost is around 2K) extra tiling in kitchen and bathrooms (cost around 1K) some extra electrical works (as these are a pain to install after the building is completed) eg electric shower over the bath, outside light, heated towel rail, additional TV points in the bedroom and electric fire in the living room (together worth around 1 - 1.5K). The minimum they really need to afford this deal is the kitchen upgrade.

I have just read on another thread that some new builds will pay stamp duty but this hasn't been discussed. Is it possible to get stamp duty paid when using the 5% deal?

Does anyone know what the best way of negotiating is please? Play cool/write/phone/in person?????

They went in for a second chat with the sales woman last weekend and she was adamant that throwing in floor covering was her best offer. Is it better for them to go back and deal with her face to face, (they find this difficult as she is a VERY experienced sales person) or would it be worth them writing or emailing? They don't know whether to just state that if the kitchen upgrade is included they will come in and sign, or would it be better to ask for all the various extras they'd like on the basis that this gives more room for compromise and she may agree to some of them.

Any advice appreciated. :beer:

plane_boy2000

Developers will offer different incentives on each plot dependent on how well they sell, so its difficult to give specific advice in your position.

My in-laws just negotiated a reduction from 280K to 250K, but the property was already complete and the builder wanted to do a deal.

Better deals are usually to be had on property that is nearer build complete, but they don't have to offer any incentives if they don't want to

InMyDreams

You might be interested to read this thread (from post number 1025 on page 52).

Richard_Webster

What is this 5% deposit scheme?

Does the builder "pay" the 4% deposit or is it a loan of 5% repayable at the some point in the future?

If they are getting a mortgage then they will need to be sure that the lender will accept this scheme. If, for instance, the builder is "paying" the 5% then quite likely lender will downvalue property and only lend say 90% of 95% of the original price.

Moral really is to save up more and not to be taken to the cleaners by buying what is probably an overvalued property that they won't easily be able to sell for several yaers.