New build price negotiations

brownsuga70

Hi

Wonder if anyone can advise.

Have seen a new build home due to be completed early summer.

We've been offered a part exchange on our current property plus the company have offered to pay the 3% stamp duty. I'm looking to accept this offer but wanted to know is it the done thing to still go back and try to negotiate on the price of the house that we want to buy, or, the fact that they are offering the stamp duty and px the house price is fixed?

Thanks in advance

kingstreet

Imagine a sliding scale. If you gain on the PX, you lose on the purchase price and vice versa.

The incentives offered depend on the popularity of the site and area concerned, so no way to tell you what's good, bad or indifferent.

Don't forget, some lenders don't accept builder cash incentives and will simply reduce the price/valuation instead. This will be crucial if you don't have the 3% to pay the stamp duty yourself.

Noctu

In our experience we had very little negotiating power with the cost of the house due to part exing.

What we got:

£254,950 house knocked down to £249,950 to avoid the stamp duty threshold (which I'm assuming they would expect anyway!)

Originally offered £100k on our house which we were told we could expect to get £110-115k on open market, got them up to £105k

No carpets or anything else on that price. That was with a local builder, not a big name one.

Hope that helps

AnnieO1234

Two years ago we bought a new build, no incentives as there were too many people interested at the time. Now however there are only two bed homes remaining and no detached properties (the build is nearing completion) interest has slacked off and the builder is throwing around incentives. It's only around 160 homes including the apartments which I am certain has some bearing, we bought extremely early on.

Are you happy with the price and love the house? Is it worth losing it? X

brownsuga70

Thank you all for your replies.


I have spoken to the sales consultants this morning and they have said that they never reduce the headline price as it devalues the rest of the development. They have said that if we checked on the land registry once the site is completed we will see that none of the properties would have be reduced.


we actually really like the development and everything decent gets snapped up very quickly at the moment where we are looking.


Have asked if they can include flooring and they are going to get to back me as they want to check if they can offer us more for our house rather than that.


Once again thank you all.

Thrugelmir

brownsuga70 wrote: »

They have said that if we checked on the land registry once the site is completed we will see that none of the properties would have be reduced.

All smoke and mirrors. The negotiation is in the builder "incentives".

Noctu

To be honest I would try and get them to give you as much as possible for your property rather than getting them to carpet it.

I know of several people who got free carpets in their new builds but wished they'd arranged it themselves as the builders put in cheap stuff that looked very worn after 6-12 months.

brownsuga70

Just an update


Thank you all for you comments.

We were finally offered the choice between :-

3% stamp duty plus free carpet

Or

3% stamp duty and 2% towards our deposit


Have gone for the second choice as it worked out at more money and the mortgage provider doesn't have an issue with it.