Negotiation and process of buying new build.

MrParsons

Hi All,

I'm a first time buyer looking to potentially buy a new build development in the Leicester area.

I currently own a home outright which I inherited. This is worth about 100k and I would use the sale of this as a deposit for a new home.

I understand the listed prices of new builds can be negotiated but to what extent? I've read advice on other thread saying not to accept any free stuff for the home such as carpets, kitchen upgrades ect. Why is this? Are they very poor quality or something?

One thing which I love about the new build photos is the kitchens, bathrooms and layout they have. Will it generally be a poorer looking / quality suite to what's in the show home?

I'm also worried about going into a negotiation and being ripped off. As a guide, what amount of discount could I expect to get? One particular house i would be looking at is £280,000.

I look forward to your replies.

jbainbridge

Start by searching this forum for 'new build' ... you'll see other people's experiences.

MrParsons

Hi,

Yes, I have already searched however some of my questions are not answered.

Thanks

lee111s

It depends on the area, the builder, how well the houses are selling among other things.

giddypenguin

What goes into new builds are all options - you will have the standard option which will be free - and then there will be a series of upgrades. Of course everything in the show home will be 'upgraded' stuff... those lovely granite work tops will be bog standard plastic/chipboard (unless of course you pay more).

Some people think that these 'upgrades' are at a premium to if you were doing it yourself so aren't worth paying the house builder to put in.

Other things to consider, if you are in a chain there will be a big gap between when you exchange and actually move in, so you'll need an understanding chain (although hopefully you'd get a FTB so maybe not an issue) who can wait the weeks/months while your house gets finished (bear in mind timelines lie - they are a guide).

Otherwise you haggle as you would with any other house - you may get some extras (such as carpets/worktops) thrown in (this may or may not be a good deal) or you may get stamp duty paid, or you might just get a big % off.

Some people say that new builds are over priced - as long as you know the area (don't be the first to move into a new development, you don't know who'll move in next, or what reputation it'll get) and what similar sized houses around are going for, and you don't pay much more than that you can't go wrong. There are some big discounts to be had if you get the timing right.

newbian

The best time to negotiate is when the properties are built. That timing may be tough though, as you could miss out on something you like because someone else was willing to purchase off-plan. We got a built property that was the show home with all the furniture included for more than £50,000 below asking price because it was one of the last 3 properties in the phase and they needed to start flogging the off-plan ones. We paid less than the neighbours whose house is smaller and was unfurnished.

terrierlady

if the development is underway go onto zoopla,or rightmove and find out what were the actual selling prices, with reguards to extras or option or finishing touches yes they are expensive but depends what spec your aiming for/ basic or to upspec,nothing like moving in and all items sorted ie carpets down garden turfted.The reservation fee is normally non refundable so make sure you select the right plot ie corner one usally has brick wall boundries extra garden etc, head of cul de sac has headlights shinning in when anyone comes into the area etc but safer for children.watchout for street light outside the plot may shine directly into bedroom at night. think before you leap to reserve.view the development plans,landscape plans, drainage/services etc,keep copies of all paperwork.

MrParsons

Thanks for the replies all.

I viewed a Redrow development yesterday (in Countesthorpe, Leicester) which is a relatively new development. It has plans for around a 200 house estate however only a msall portion of these are currently built. The houses we were looking at are listed at £315k which I thought was very expensive comparing similar properties. To make it affordable and bring it somewhere in line with what we believe is market rates, I'd be looking at getting it down to around £270k and probably with stamp duty paid as well. I'm not too bothered about internal free options as I can do a lot of that myself. I'd expect fully fitted kitchen and bathroom though.

Does that sound unreasonable? I mentioned to the sales man about doing a deal and he instantly said "we don't negociate on price. Thats a Redrow policy across all sites." I imagine thats crap though.

bclark

MrParsons wrote: »

Thanks for the replies all.

I viewed a Redrow development yesterday (in Countesthorpe, Leicester) which is a relatively new development. It has plans for around a 200 house estate however only a msall portion of these are currently built. The houses we were looking at are listed at £315k which I thought was very expensive comparing similar properties. To make it affordable and bring it somewhere in line with what we believe is market rates, I'd be looking at getting it down to around £270k and probably with stamp duty paid as well. I'm not too bothered about internal free options as I can do a lot of that myself. I'd expect fully fitted kitchen and bathroom though.

Does that sound unreasonable? I mentioned to the sales man about doing a deal and he instantly said "we don't negociate on price. Thats a Redrow policy across all sites." I imagine thats crap though.

I am just in the process of buying a Redrow home, they are the nicest out there in my opinion. The internal walls are all brick built and most of the nice touches that you see in show homes are standard, with just a few being extra's.

It obviously depends on the development and how its selling but due to the nice nature of their houses they really weren't that keen on negotiating much on the price. Having said that it was a definitive no until I was in a position to make an offer and all of a sudden they were a bit more interested.

Having said that they did negotiate on price but they offer a discount on completion rather than a reduction in the sale price, its effectively the same thing but the mortgage company will only allow up to 5% before is affects your LTV, that was the value we got anyway.

MrParsons

Good idea about the sold price check however I don't beleive there are road names as yet. The development is called Thorpe Meadows Countesthorpe but nothing seems to show on Rightmove for this development. there are however a number of new builds showing but without pictures.

MrParsons

bclark wrote: »

I am just in the process of buying a Redrow home, they are the nicest out there in my opinion. The internal walls are all brick built and most of the nice touches that you see in show homes are standard, with just a few being extra's.

It obviously depends on the development and how its selling but due to the nice nature of their houses they really weren't that keen on negotiating much on the price. Having said that it was a definitive no until I was in a position to make an offer and all of a sudden they were a bit more interested.

Having said that they did negotiate on price but they offer a discount on completion rather than a reduction in the sale price, its effectively the same thing but the mortgage company will only allow up to 5% before is affects your LTV, that was the value we got anyway.

Thanks for the reply. Would you mind sharing some figures in relation to how much discount you negotiated? I was thinking of getting an independant valuation and then offering what the valuation comes back at.
I'm afraid I don't understand the "completion" part of what you said. I'm a first time buyer (although I'll be selling a home i inherited) so the terminology is a little lost on me