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New build buyer- how to get incentives thrown in?

Hiya, myself and my fianc!e are buying a new build home using the governments MI new home scheme where you only need 5% deposit. The home builder has thrown in a free upgrade for integrated kitchen which we are really pleased about however we know people who have had carpets or turf thrown in along with this etc. we are moving in 6 months earlier than planned and taking a few upgraded items from them at full price (alarm,different doors etc). Could anyone recommend how to suggest they give us an incentive for free carpets and flooring without sounding cheeky or ungrateful? Many Thanks. Laura

Comments

  • MrParsons
    MrParsons Posts: 72 Forumite
    Simply put. You're too late.

    It sounds like you have already paid your reservation fee in which case all your powers of negotiation have been removed. Assuming I am right, you now will not get anything else thrown in.

    This type of thing should have been negotiated before any signatures are given and any monies paid.

    I'm about to exchange contracts on a house with Taylor Wimpey. I bought the last house type on the development. Before doing anything I verbally negotiated a £35k discount off the price (£285k down to £250k), and £4500 worth of upgrades. I went in with an offer and justified to them the reason for my offer. Then they accepted at which point I paid a reservation fee. As soon as i did this i relinquished my position to negotiate so I made sure I was fully happy with the terms of the agreement.

    As a side note, I believe these government schemes are being abused by the house builders because they use the fact that you are using a "scheme" as leverage for you to pay an inflated price. The house that I bought is valued at £250k so if i payed the asking price I would have paid over the odds.
  • sbmcb
    sbmcb Posts: 27 Forumite
    Final money out will be the same....

    £550k asking price, negotiated to....

    £530k and they pay 4% stamp duty or £490k and we pay 3% stamp duty.... Final price only has a fraction in it.

    Thinking in terms of resale, does it look better to future buyers on land registry that we paid 530 rather than 490 so they feel they're getting a better deal or am I bring stupid?

    Be honest- I appreciate any advice!
  • MrParsons wrote: »
    Simply put. You're too late.

    It sounds like you have already paid your reservation fee in which case all your powers of negotiation have been removed. Assuming I am right, you now will not get anything else thrown in.

    This type of thing should have been negotiated before any signatures are given and any monies paid.

    I'm about to exchange contracts on a house with Taylor Wimpey. I bought the last house type on the development. Before doing anything I verbally negotiated a £35k discount off the price (£285k down to £250k), and £4500 worth of upgrades. I went in with an offer and justified to them the reason for my offer. Then they accepted at which point I paid a reservation fee. As soon as i did this i relinquished my position to negotiate so I made sure I was fully happy with the terms of the agreement.

    As a side note, I believe these government schemes are being abused by the house builders because they use the fact that you are using a "scheme" as leverage for you to pay an inflated price. The house that I bought is valued at £250k so if i payed the asking price I would have paid over the odds.



    Thanks for that. We have only paid reservation fee. We are not legally bonded by contract yet as misevs have not been signed and not have we officially confirmed what extras we want so I'm not sure this is relevant for us?
  • LisaLou1982
    LisaLou1982 Posts: 1,264 Forumite
    Chutzpah Haggler
    sbmcb wrote: »
    Final money out will be the same....

    £550k asking price, negotiated to....

    £530k and they pay 4% stamp duty or £490k and we pay 3% stamp duty.... Final price only has a fraction in it.

    Thinking in terms of resale, does it look better to future buyers on land registry that we paid 530 rather than 490 so they feel they're getting a better deal or am I bring stupid?

    Be honest- I appreciate any advice!

    I suppose it depends on the market at the time of your resale!!! Once you hit the 500k mark, your stamp duty has gone up so it may be a ceiling price for some. Again, i guess that depends on the area where you live.

    Another factor to look at come resale time will be the comparible properties around yours and how much they sold for. If next door is the same and they paid £450k then im sure there will be a difference when it comes to peoples offers if they can see how much you both paid for an identical property
    £2 Savers Club #156! :)
    Looking for holiday ideas for 2016. Currently, Isle of Skye in March, Riga in May, Crete in June and Lake District in October. August cruise cancelled, but Baby due September 2016! :j
  • Ps my friends negotiated after they'd paid their reservation fee too.
  • We have paid our reservation fee on a new build, we have a kitchen, all flooring and turf included and they have dropped the asking price by £15k for us.

    We will go in next weekend and choose our extras BUT I get the feeling we have had the max out of them they will give - plus some mortgage companies don't allow the builder to give you too many 'incentives' but that might be as I am doing Help to Buy.
  • Hiya, my advice would be to ask anyway - the worst that can happen is they refuse.
    We did help to buy and negotiated money off the price plus got free white goods, carpets, flooring throughout. For us, it was important that we felt happy we were paying a fair price and we got some useful extras - my advice would be to think about what you really need rather than what you can get for free, just for the sake of it? The post occupation experience has been great too - any snags (very small) have been sorted instantly, and odd jobs taken care of which goes a long way.
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