Negotiating on a Barratts New Build

Rach_b_123

Hi,

Has anyone or does anyone know of people who have managed to negotiate a good deal on a new build - Barratts Homes in particular?

Please no negative posts about the quality of Barratts houses - I've read mixed reviews online and am fully aware of the problems new build properties can have....I just want to hear about peoples experiences of negotiating.

The price for this property is £175, 995 and there are currently 4 ready to move into properties of this kind that seem they to be struggling to shift. We would pay this if we got all the extras thrown in:

Carpets throughout and ceramic tiles in kitchen
Stamp Duty paid
Legal fees paid
5% deposit match
Garden landscaping and fence

But to be honest, if the properties are struggling, we thought we would try to negotiate even more. What are our chances of getting all of the extras listed above plus an amount off the price?

We havent started negotiating yet and wont be until January (if the houses are still there) - just wanted to hear of people's experiences to help my research.

Many thanks.

kingstreet

You won't get cash incentives of more than 5%. For example, 5% builder's deposit could be available, but you won't get stamp duty paid on top of that. If you do, it will case problems with your mortgage lender as many limit cash incentives to no more than 5%.

Do you have at least 10% deposit on top of the builder's to open up a few lenders? Only a couple of lenders offer 90% on newbuild houses.

lord_tyrannus

I got absolutely nowhere trying to get a discount off the list price from barratt although they did hint if we paid list we could get free flooring

a friend of mine bought barratt and managed to get half of the stamp duty paid but he was on the 3% threshold

witchy1066

wait until January and if the houses are still available, I think you would be in a good position to negotiate almost anything,

but and I know you don't want to hear this , if they are struggling to sell have you asked yourself why or done any research as to why

all new builds around here are sold off plan , and from what I have read on this forum its the same in most areas of the UK,

Rach_b_123

kingstreet wrote: »

Do you have at least 10% deposit on top of the builder's to open up a few lenders? Only a couple of lenders offer 90% on newbuild houses.

Were going for the Help to Buy phase 1/equity loan and will have a 5% deposit saved.

kingstreet

Ok. You are still limited to cash incentives of no more than 5%, but a price reduction should be accepted no problem, if you can get one.

Rach_b_123

witchy1066 wrote: »

but and I know you don't want to hear this , if they are struggling to sell have you asked yourself why or done any research as to why

all new builds around here are sold off plan , and from what I have read on this forum its the same in most areas of the UK,

I am yet to discover this and racking my brains as to why this may be. We have seen where they will be positioned (very briefly and not taking too much notice so need to go back and scrutinise this) and it appears to be in a good location within the development (and in a very good area/well established wider development). The only reason I can think of the living room is on the small side but the ground floor kitchen/family/dining room more than makes up for that in my opinion (its a 3 storey townhouse with living areas on the ground floor and first floor). Maybe the gardens are not south facing too....

Not 100% sure why they arent selling yet but determined to find out - it is obvious why the other properties in another part of the development aren't selling - they look out on the local industrial estate so the houses have been put in any available space possible and not in a spare I would want! But with the houses we are interested in, nothing glaringly obvious why...yet....

Rach_b_123

kingstreet wrote: »

Ok. You are still limited to cash incentives of no more than 5%, but a price reduction should be accepted no problem, if you can get one.

Thank you. So cash incentives are stamp duty paid, legal fees help, deposit match but would carpets/ceramic tiles, landscaping, etc. be counted as as non-cash incentive?? Sorry that's probably a really dumb question!

kingstreet

Yep. Exactly right.

Non-cash incentives are things like tiling, flooring, turf etc.

Rach_b_123

kingstreet wrote: »

Yep. Exactly right.

Non-cash incentives are things like tiling, flooring, turf etc.

Whoohooo!! Thank you. Better get my hard faced negotiating head on then and take them for as much as I can. :beer:

Building_Surveyor

Negotiation is very much dependant on the development and demand. Nobody on here can tell you whether barratts will budge on the asking price of this particular development. All you can do is ask them. The fact that the houses are built but are still unsold puts you in a stronger position to negotiate but again, depends on how desperate barratt are to get rid and how many people are queuing through the door. But as others have said, suggest you find out why they're not selling first before jumping the gun.

Good luck!