New Build Price - What to offer?

i2013

I'm thinking of reserving a new 2 bedroom house which has been released for sale at £144995. I am not looking to do the 'Help to Buy' scheme but will be taking out a mortgage for about £94000. What would be a sensible offer to make or will I not be able to negotiate on price at all? Thanks. (Kier is the builder by the way).

2bFrank

If you are using none of the builders incentives (homebuying scheme, part ex, deposit paid, stamp duty & legal fees etc) then you will be able to negotiate a good discount. How much depends on how well the estate has sold, i.e if its the last few houses left with not much interest then you will be able to negotiate big. If the estate is quite new, with building work still on going and selling well, then the discount will be smaller, but does not mean you cannot get one.

Dont bother with any extra upgrades at the discount stage as these never really workout much value, new appliances and carpets may sound good, but you can often get a better deal buy concentrating on price, then using these upgrades as a sweetener.

If you are using any scheme, then discounts are pretty much out the window, not impossible mind, but very difficult.

caeler

My first new build was a 2 bed end of terrace marketed at £145K and I got 8% off. I got carpets thrown in but nothing else which I was fine with as I much preferred money off. I came along 2 months before the developers year end which in my experience makes them more likely to want to discount. I brought off plan too so it shows a deal can be done.

2 years later those same houses are going for between £120-125K due to stamp duty threshold so don't be under any illusion of selling for a profit in the short term. New build premium strikes again! :-)

harrys_dad

If you are not using any of the schemes to entice buyers to buy new build why not get much more for your money and buy an existing house?

i2013

harrys_dad wrote: »

If you are not using any of the schemes to entice buyers to buy new build why not get much more for your money and buy an existing house?

Because I prefer new properties. You can choose fittings etc. and I like the neutral decor.

revsi

I've recently bought on a very popular site (houses are usually reserved within 48hrs of being released) and no negotiation was allowed at all. It makes business sense - it doesn't matter to the builder if I walk away because I don't get a discount because there's a queue of others at the door willing to pay full whack.

Having said this, a colleague of mine is buying a house on another development, which is less popular, with more houses to sell. She wasn't able to get a reduction on the price (as this is published and the builder wanted all the prices to be the same, or something), but she got thousands of pounds' worth of extras for free.

It all depends on the supply and demand.

gazzabboi

with the odd exception, most houses near me have gone for full asking, £5k off at best.