Discount On New Build House

taz8130

We currently have our home up for sale (only went on market yesterday).

We are looking at purchasing a Redrow new build, local to us.

I am lucky in that I have a house that I rent out that will be vacant in four weeks and we can move into that while we get a property at the right price.

I will be paying cash for the house and will be able to move within 28 days.

Once we have sold our house, the plan is to go into the sales office and offer 13% less than listed price (bearing in mind that they offered me 5% off when I called in the other week, just looking).

In addition I am hoping that negotiations can be made to include recessed lights in living-room, hall, bathrooms/toilets & kitchen. Carpets and turf aswell.

Redrow's financial half-year is December, so we can wait till then to go into the sales office with this offer and it also gives us time to shop around with other developers

Would you say this was a reasonable offer that they would deal on ?

Jimbo1976

Developers do tend to offer bigger discount for sales which go through in time for quarter end, half year end and year end. Though it will depend how they are doing against their targets. If they have smashed their target then you won't have much luck. If they just need one more to go through then you could get a big discount especially if you are a cash buyer.

Do you know how much of the site has been sold? are there many houses left like the one you want etc?

martinsurrey

I would say as a cash buyer you should be aiming to complete just before Crimbo (so offer early Nov, exchange late Nov.

The sales person will want you to get to exchange before the end of Nov (they get commission on exchange, and will want yours in time for the December pay check).

13% is the minimum you should END at, so go in hard at 20% below and work to 13% getting some extras in as well.

if it takes a few days to negotiate, that’s a good sign, if they agree in 1 day it means you probably went in too soft, the best deals (ie cheapest) have to be approved by varies layers of Managers which takes time (for example a sales advisor may be able to approve up to 2% discount, sales manager 5%, sales director 10%, Regional MD 15%, CEO any%).

Don’t forget that its business, until reservation and exchange it’s not a home, it’s a pile of bricks, and you want the bricks for the minimum possible!

taz8130

The site sales office has been open for around 3 - 4 months now, maybe a bit longer.

About 7 of the first phase of about 34 were showing "SOLD" on the site plan in the sales office when I called in the other day.

They are also opening another site about 3-4 miles away in the new year.

chris_m

taz8130 wrote: »

Once we have sold our house, the plan is to go into the sales office and offer 13% less than listed price

Just curious - why 13%?

Just seems an odd number to choose when most would probably go for multiples of 5 in anything like that.

Mickygg

I assume 13% gives a round amount from the list price.

All new estates are different. One I was looking at wouldn't drop at all, and another one 5%. 13% really is pushing it IMO. Worth a try though.

taz8130

Funny thing, yesterday.

Couple of relatives of mine called into the sales office and the sales staff were adamant with them that no incentives were available.

Sales staff told them, "You might get 3% discount, but if you ask for 10% they will just laugh at you" (exact words)

This is despite them offering me 5% straight off, only a few days earlier.

Wonder if the fact that they were in their early 70's, and the girl thought that they didn't know how buying new builds work ?

jenna_m

Hi, just wondering if you have made any progress with this one? I'm looking at buying a house off plan with redrow and wondered if there was any room for manoeuvre with their prices?