Help to buy, am I being played?

Nutnic

We have just attempted to put an offer in on a new build using the help to buy scheme and were told by the developer that there is strictly no negotiation on the asking price and that that's the policy rule, nothing to do with them.
I can't find confirmation of this anywhere, are they having me on?
Grr
Nic

Excited13

Is this a brand new development? I was looking at a brand new build (not through any scheme) and as I was chatting with the EA he advised they would only be accepting offers at the asking price. I walked away and I found a house that I love however it's turning in to a very long process.

Nutnic

No it's actually towards its end. We negotiated and agreed a price with directors then when I reminded them that we were using help to buy they took the offer off the table and said they weren't allowed to negotiate on the asking price.

mark?_3

Sounds like a load of rubbish. The developer chooses the price they wish to sell the property at, therefore they can equally choose to drop the price if they wish.
You may find that, due to the way the scheme is financed that the developers head office is demanding a higher minimum profit margin on sales under the Help to Buy scheme, but again this is just a decision by an accountant and could be negotiated around if they are struggling to shift the properties.
And as with all new builds, if they won't budge on price go for the options list

kingstreet

In my experience, they have more flexibility on price using HTB than they would on, say NewBuy.

HTB costs the builder nothing because the equity loan is Government funded, wheras NewBuy costs the builder 3.5% of the purchase price which is paid into the indemnity fund.

ruggedtoast

Help to buy. Helping house prices to become even more affordable since 2013.

Turnbull2000

Help to Buy is generating demand and purchasing power where there'd otherwise be none - so developers are understandably pricing this into their schemes.

I'd expect new build prices for first-time buyers to rise around 10-15% on the back of Help to Buy over the next 12-16 months. So the sooner you take advantage the better.

thedalmeny

Seems to be a common question this....

I'm currently going through "Help To Buy"...

Mortgage offer received and all approved on the scheme...

Builder gave me the following;

- 10k off the purchase price (192 - 182k)
- Carpets
- Turf
- Integrated Fridge / Freezer

Only 3-5 houses within 5 mile radius of this size, quality and price, most go for around 200k+ so feel i got a very good price.

Don't believe this "You should get 10-15% off the list price of a new build as standard" rubbish, it's very much down to the current list price and what houses are currently selling for in the area. If they look horrendously overpriced, then you likely have more room to negotiate, if they aren't, then you won't. Just try and bring down the price to what is going sold rate within a 5 mile radius.

wymondham

I thought that generally if you purchase on a scheme then this reduces your bargaining position?

kingstreet

wymondham wrote: »

I thought that generally if you purchase on a scheme then this reduces your bargaining position?

It doesn't. The property and the scheme are not directly linked. As long as the developer subscribes to the HTB scheme, you get the equity loan via the local HCA HomeBuy Agent by completing a property information form and attaching it to a copy of the builder's reservation.

HTB costs the builder nothing.

FireWyrm

ruggedtoast wrote: »

Help to buy. Helping house prices to become even more unaffordable since 2013.

^^^ there, fixed it for you....