Negotiations on a new build - what can we ask for?

sarahl1979

Hi

We are first time buyers interested in buying a new build with Barrett. House is on market for £208k and they are refusing outright to negotiate on price. They did however say that they can offer other incentives such as stamp duty paid.

Realistically what can we ask for/ expect to get if they wont negotiate on price? As with anyone we would like to get as much out of it as possible!

Thanks

Sarah

littlesparkles

With Taylor Wimpey I am getting
5% deposit
Stamp duty
Legal fees
Removal fees
Estate agent fees.

My friend is a first time buyer with TW and got
5% deposit
Carpets
Upgraded oven, hob and hood
£150 towards other extras

sarahl1979

Brilliant, thanks. I was thinking of asking for stamp duty, legal fees, carpets and integral kitchen appliances. Maybe ask for a couple of built in wardrobes too but thought this might be pushing it a bit....

We already have a deposit and a mortgage offer in place so think we are in a pretty good position.

Thanks again.

hazyjo

Compare against other sold prices of similar properties ('second hand' ones too!) before you agree to anything. Make sure you're not paying a massive premium for it being new.

Check the garden will be turfed - if not, include that.

What percentage of the development has sold, and how long has it been available for? Are you buying one of the first, or last, for example...

Use your own solicitor rather than theirs. You want someone working for you, with your best interests at heart, rather than Barratt's.

Do you mean 'offer in principle', or do you actually have a mortgage offer?

Good luck with whatever you end up with!

Jx

littlesparkles

Yes be aware that some lenders do not like builder's incentives - even carpets and so on. You have to disclose all incentives to the lender (and the builder fills in a form that has to include these and it goes to your solicitor I believe). I was told that only Nationwide, Santander and Accord would look at my mortgage with the incentives I listed above. This was by a broker so he may only have had access to these lenders for some reason or another. Nevertheless I searched the whole market myself and Nationwide were the best for us. Also some lenders need you to have more than 10% deposit when buying a new build.

Holls1981

We got carpets and flooring throughout, turf front and back, stamp duty paid, alarm fitted, 12 months mortgage protection against sickness and redundancy and they made a large alteration in kitchen to accommodate my dishwasher.

cheekychappy

I have a relative who works for Barratt and he says they will negotiate, but it depends on how much and how quick it is selling on the development as to how low they will go.

sarahl1979

Thanks for the replies.

The development is in phase 2. To be fair they have only just started building the ones we are interested in (due to complete December) so they have plenty of time to try and sell them.

We have done our research and the price its for sale at is on par with other houses in the area (new and re-sale), so what ever we can get included in the deal will be a bonus.

Sarah

sarahl1979

littlesparkles wrote: »

Yes be aware that some lenders do not like builder's incentives - even carpets and so on. You have to disclose all incentives to the lender (and the builder fills in a form that has to include these and it goes to your solicitor I believe). I was told that only Nationwide, Santander and Accord would look at my mortgage with the incentives I listed above. This was by a broker so he may only have had access to these lenders for some reason or another. Nevertheless I searched the whole market myself and Nationwide were the best for us. Also some lenders need you to have more than 10% deposit when buying a new build.

Really? I could understand lenders not liking the builders 'giving' money towards a deposit but why would they care about things like carpet, turf, wardrobes etc? Its not like they will have a stake in the property...

littlesparkles

They just don't. They see these incentives as a price reduction really. It will be best for you to contact your lender and ask about mortgages for new builds and builder incentives. For example, HSBC take all incentives into account and change the value of the house accordingly. Nationwide do not. I am sure there are other lenders but these two are my current and my new so the ones I spoke to a lot about this. We were going to get carpets instead of stamp duty but this was classed in the same way as an incentive so there was no point.

Richard_Webster

The point always is what similar 5-20 year old houses are worth in the area. You shouldn't pay much more than that.

If the house is significantly more expensive you are being had. Why should it be worth more in say 5 yaers time when you want to sell, than a house that is a few years older?

DO NOT COMPARE with other new houses on the same development - the sales girl will always tell you that Plot 15 sold for £215K so you are getting a bargain.