Is it too late to haggle over price of a newly built property?

geek84

Hi Folks

A friend of mine is in theprocess of buying a newly built property. He has been a bit naïve in that he thought you could not haggle over thelist price of a newly built property. Isuggested to him that he could have asked for some extras to be included in theprice such as carpets, lighting, kitchen appliances, payment of stamp duty etc.

However, he has already paid asmall retainer to the property developer and will be paying the required 20%deposit in the next few weeks.

So, at this stage, is it too lateto haggle over the cost price?

Thanks in advance for your responses.

lee111s

He has nothing to lose although I very much doubt he will get a reduction now that the builders know he wants the house (by putting down the retainer)

geek84

Thanks lee111s

bitsandpieces

If he hasn't exchanged contracts, he can haggle. He's in a weaker position having paid the retainer, though, and may well lose this if he changes his mind.

Unless he is in love with the place, if it is overpriced then there are circumstances where it's better to walk away and lose - say - a £500 retainer than to overpay and buy a property worth £100k for £120k Of course, if the price is already good then that's not an issue (and if it's already well-priced he'll find haggling far harder!)

geek84

Hi Folks

My friend went to see the developers today with the idea of haggling..

He managed to get a washer/dryer machine and fridge freezer for the kitchen. So, it was well worth it. Many thanks to you guys for giving me the initial idea of haggling.

I have another question for you kind folks out there -

The developer is gently persuading him to use their solicitors. Are their any particular advantages/disadvantages associated with using the developers nominated solicitors?

Thanks in advance for your responses.

dimbo61

Your friend should say thank you but I already have a good local solicitor which My family has used for years.
Then ask friends/family if they know a good local solicitor!
There maybe a conflict of interest if the developer is using the same solicitor or firm of solicitor.
He can also shop round to get the best price

GDB2222

The reservation fee is refundable under the Home Builders' Code. I'm surprised that more people don't know this.

2.6 Reservation
Home Buyers must be given a Reservation agreement that sets out clearly the terms of the
Reservation, including, but not limited to:
the amount of the Reservation fee;
what is being sold;
the purchase price;
how and when the Reservation agreement will end;
how long the price remains valid;
the nature and estimated cost of any management services the Home Buyer must pay for.
The Reservation fee must be reimbursed if the Reservation agreement is cancelled. The
Home Buyer must be told of any deductions that may be made.
While the Reservation agreement is in force, the Home Builder must not enter into a new
Reservation agreement or sale agreement with another customer on the same Home.

http://www.consumercodeforhomebuilders.com/downloads/Consumer%20Code%20-%20Third%20Edition.pdf

thelem

The developers are only after the referal fee. Find your own solicitor who'll work for all the money you pay them.

geek84

Thanks for the advice regarding the solicitor, folks.