Negotiation and process of buying new build.

bclark

MrParsons wrote: »

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

Basically whatever discount you agree they discount it at the point of the deal being completed. The money you are paying will be the discounted figure you agree but it means that they can put the full sale price, £315k, on the land registry.

I got effectively 6% off plus floorings. This was for a house that was just being finished so they wanted to sell it fast.

It really does depend on the development but Redrow seem to be doing well at the moment and I do think the days of regularly getting massive discounts on some newbuilds are slightly behind us for the moment.

dimbo61

Sell the house you are in first and either rent or move in with friends/family for a short period.
Cash is king and having a large deposit and mortgage in place gives you bargaining power.
To sell a house you need to have a working kitchen and bathroom now if a builder is expecting £250/300K sale price then he is not going to put in a £1000 kitchen from B&Q or IKEA is he?
You need to know what you want ie 3 storey townhouse with 3/4 bedrooms or 4 bed detached with separate double garage !!!
You want the layout to work for you and your family.
The builder will not want to discount the price as this will devalue the other houses on the estate so look at Extras such as stamp duty paid ( saving £8/10K) and fencing/lawn/ conservatory etc

MrParsons

Thanks for the replies.

I guess that explains why the sale prices are showing as being what their asking for on Rightmove. I highly doubt that they really sold for this though.

Would to be a good approach for get a mortgage valuer to come in, value the house and then offe rthe value they come back with? Some houses are built and others are due to be built but I'd be looking at buying a pre built one as we do not have anyone to live with and don't fancy renting for any period of time.

bclark

MrParsons wrote: »

Thanks for the replies.

I guess that explains why the sale prices are showing as being what their asking for on Rightmove. I highly doubt that they really sold for this though.

Would to be a good approach for get a mortgage valuer to come in, value the house and then offe rthe value they come back with? Some houses are built and others are due to be built but I'd be looking at buying a pre built one as we do not have anyone to live with and don't fancy renting for any period of time.

You could try it, they may not like the idea but they may be fine.

You may well be surprised at the result though, we have just had our mortgage valuation on ours and its come back as worth what we are paying so they don't seem to be massively overvalued.

Looking at the development you mentioned it appears as if you are looking at the Winchester, they were marketed at £350k at the development near me and sold in a flash.

MrParsons

Yes, the Winchester is what we initially earmarked as what we would like. The 2 smaller houses (Oxford and Cambridge) dont really fit the size we wanted. I'm pretty sure there are other houses which are similar in size but a lot cheaper. we're undecided at which approach to go down really. If they won't budge on price we will walk away however if they do move by 10% then we would probably go for it.

OddballJamie

Have you considered part-exchanging the house you inherited towards the new build? My parents did this and got £5k more than Persimmons sold the old house for and £40k off the new house. This was back in 2009 and they paid for any extras (some were done independently after they moved in).

MrParsons

I did think about it however Redrow said they do not offer part exchange anymore. Whether this is true or not I have no idea.

OddballJamie

According to their website they still offer it but only on selected plots.
http://www.redrow.co.uk/helping-you-move/part-exchange

MrParsons

I've emailed them about it but unless they negotiate the price on the houses we would want then i wouldn't be interested. I'd be happy to sell privately, I know houses around my area sell very well due to being large and not being expensive. I think my first thing to do is to put myself in the best possible negotiating position.

OddballJamie

Is it just new builds that you are interested in or would you consider a preloved home? I had a quick look around that area on Rightmove and there's quite a few good sized four beds for around your budget.

The other thing to keep in mind is the new government scheme for non-FTBs could have an effect of the prices of new builds, possibly reducing the good discounts for more standard purchases.