Buying a new build, possible discount?

onefurlongout

We have seen a nice 4 bed detached house for £290k. Apparently it's available again following someone dropping out. The house comes as the original purchaser wanted it with full carpets (not our fav colour), full kitchen and white goods. So not much scope for extras during negotiations

We are going with a Px so likely to get an ok offer on ours but what is a reasonable discount to expect on the main property. Are new builds artificially high so Would I be expecting too much to get 15% off? It still leaves me with the higher stamp duty which is a bit of a pain.

I own my own home outright having been able to pay this off through a recent critical illness payment so no mortgage or lending issues.

The house is in West Yorkshire so not sure what the new build sales are like in the current market

ChopperST

We have recently purchased a new build with an originally asking price of £333k, we managed to purchase at £303k including a part exchange of our existing home. 10-15% isn't unreasonable but the price is what the market dictates i.e. what you and the builder agree its worth. GL!

dgtazzman

Plenty of posts about this subject been flying around lately. Don't expect too much, but as the original buyer dropped out and the house is ready to go, you might get lucky, especially if you drop comments down the lines of 'I don't like the carpets' and 'this is not the kitchen I would have picked'. 15% is still having a laugh though, I'd realistically try more towards the 5%-10% bracket and you could always try to convince the builders to pay the stamp duty to secure a fast sale...

No idea about the market in West Yorkshire, but here in the East Midlands, discounts on asking prices for new builds are rapidly becoming extinct.

ging84

do not compare discounts few purchases are the same

Stamp duty paid is something well worth asking for as that is a very common incentive.

Part exchange greatly complicates things, they can offset any discount on the property by discounting their offer on yours, however they would more likely favour inflating the offer on yours to secure the full asking price on the new property.

Being as sale that fell through close to being ready potentially give you a chance for a little more discount that you would normally get, but that can depend, is it forsale at the original asking price or have they discounted it already? or maybe they've even upped.
How big is the development and how much is there left to build / sell, if they're near the end they'll probably want it gone asap, but if they got loads more to build, they potentially can use it as a show house.

onefurlongout

Thanks for the comments and thoughts. With the market improving I guess a great discount becomes less likely

There are about 4 properties left in phase one. Phase 2 has just started and they have sold 4. I think there about 50 properties. The existing show home is the same type.

They are asking 290 for it. We are not a fan of the carpets and it's next to an affordable housing house (May or nay not be an issue). The garage is also separate from the house and is adjacent to the back of the garden which isn't great. All minor points in the grand scheme of things but important nevertheless.

I guess I've got to be prepared to walk away if the deal isn't right

Tancred

onefurlongout wrote: »

We have seen a nice 4 bed detached house for £290k. Apparently it's available again following someone dropping out. The house comes as the original purchaser wanted it with full carpets (not our fav colour), full kitchen and white goods. So not much scope for extras during negotiations

We are going with a Px so likely to get an ok offer on ours but what is a reasonable discount to expect on the main property. Are new builds artificially high so Would I be expecting too much to get 15% off? It still leaves me with the higher stamp duty which is a bit of a pain.

I own my own home outright having been able to pay this off through a recent critical illness payment so no mortgage or lending issues.

The house is in West Yorkshire so not sure what the new build sales are like in the current market

Going to a builder with a begging attitude isn't likely to help. Builders are well aware of the various schemes from the government on new build houses and are therefore not motivated to give anything else away, especially if the prices already reflect the local area's situation. Asking 15% off is plainly daft in the current market, and even 10% off is very unlikely to work unless the houses are very overpriced to start with. The best thing to ask for is either SDLT paid for or else a fitted kitchen and carpets etc.

somethingcorporate

ChopperST wrote: »

We have recently purchased a new build with an originally asking price of £333k, we managed to purchase at £303k including a part exchange of our existing home. 10-15% isn't unreasonable but the price is what the market dictates i.e. what you and the builder agree its worth. GL!

This sounds very similar to our new build purchase - we moved in at the end of July. Ours was on at £335k (after dropping from £385k to £355k to £335k). We secured it on our second offer for £310k and the developers paid stamp duty (£9k) and did some other bits for us amounting to around another £1k.

They were more than happy to accept offers but the house had been on the market for a while.

This was in North Yorkshire.

Tancred

onefurlongout wrote: »

Thanks for the comments and thoughts. With the market improving I guess a great discount becomes less likely

There are about 4 properties left in phase one. Phase 2 has just started and they have sold 4. I think there about 50 properties. The existing show home is the same type.

They are asking 290 for it. We are not a fan of the carpets and it's next to an affordable housing house (May or nay not be an issue). The garage is also separate from the house and is adjacent to the back of the garden which isn't great. All minor points in the grand scheme of things but important nevertheless.

I guess I've got to be prepared to walk away if the deal isn't right

£290k is hardly enough to buy a small 3 bed detached where I live. The small 88 sq m detached house which I've just bought from Charles Church had an existing reduction from £315k to £295k (no SDLT assistance) and is fully carpeted (acceptable colour scheme) with a fitted kitchen, so I snapped it up. I am considering installing a conservatory with the savings I've made, but it's a pain because you need to ask permission from CC first.

Tancred

somethingcorporate wrote: »

This sounds very similar to our new build purchase - we moved in at the end of July. Ours was on at £335k (after dropping from £385k to £355k to £335k). We secured it on our second offer for £310k and the developers paid stamp duty (£9k) and did some other bits for us amounting to around another £1k.

They were more than happy to accept offers but the house had been on the market for a while.

This was in North Yorkshire.

Ah the north of England! Try this trick in Surrey or Berkshire and you will get precisely nowhere.

onefurlongout

The didn't budge on the asking price but offered to pay 2% of the Stamp duty. Aligned to this the offer on ours was only 90% of the market. Needless to say the deal is dead unless they come back with another offer. At the end of the day there were too many issues with the house for us to consider paying nearly £300k

We've looked at another development today and actually like one of them, its bigger in Sq ft and £20k cheaper. The area is arguably not as good but I'm still to see why.

Its off plan so we would have all the benefits of having it done like we want it to.

Thanks again to those that commented in the thread. I'd hate to be buying down south at the moment

somethingcorporate

Tancred wrote: »

Ah the north of England! Try this trick in Surrey or Berkshire and you will get precisely nowhere.

Given the OP is looking in West Yorkshire seems my experience is probably useful but agreed, in the South East - particularly london - it's a different (totally insane) world.