Negotiation on New Build possible?

binky21

You could try and push for flooring or contributions towards Legal/Stamp Duty costs (quite common incentives), but again it will all depend on the demand on that particular site. If they do have a waiting list, then there is no incentive for them to throw things in as they can simply find another buyer.

I don't think anyone can tell you what to do, as you're the one who is going to live with the decision. It's a huge amount of money, and not something to take lightly. If you were to complete on the house and move in, would you be dancing with joy or would you still be frustrated that you overpaid?

As others have said, try to remain objective and unemotional when talking with them. Most importantly, both of you need to be prepared to walk away if you're unhappy with the price. Have a frank, honest discussion with your partner and explain why you're unhappy with the cost and lack of incentives. Remember that on top of legal costs, you will have a lot of other expenditures (e.g. flooring, turfing, tiling additional bathrooms, etc.).

dgtazzman

* House prices have risen in many parts of the UK in the last 2 years, in some areas very sharply, so depending where you are buying, a 20k rise in price in 18 months is only to be expected. 3 years ago I bought a 200k new build house in Northampton for 200k, I sold it a year ago for 210k (sold it slightly under asking, could have already gotten 215k-220k for it at that point if I hadn't wanted a quick easy sale due to divorce). This house type is now selling like hot cakes for 240k-250k on the same development, they have people standing in line for them at this price.
* Your lender will send a surveyor to value to plot, they will tell you what it is worth in their eyes, if the valuation comes in under asking price, you can renegotiate based on that. I have done this with the new build I am currently buying. Asking 200k, negotiated down to 192k, valuation came in at 180k (which was ridiculous really, enough comparables locally at 190k-195k, but that's another story). Builder didn't want to kick up too much of a fuss about the valuation, so negotiated the price down to 189k and extras thrown in (GBP 500 allowance for flooring and over 3 grand in extra tiling in kitchen and bathrooms).

If you like the house and it sounds like you do, especially your gf, I'd just continue the process and wait to see what the surveyor from your lender has to say. Your initial point of negotiating was when you reserved and anything discussed should have been put on the reservation form at that point. If it wasn't and you signed it, you have nobody but yourself to blame. Your only real chance of further negotiation now is if the valuation comes in lower than the asking price, otherwise you will have to pull out.

AdrianC

nick1231 wrote: »

What would you do in my situation?!I

Look, it's very simple. Nobody here even knows where in the country it is, let alone what the reality of the demand is.

There is really only one relevant question - and you are the only one that can answer it...

Are you willing to run the risk of losing the plot - and receiving the full wrath of your g/f - for £10k of overpriced-in-the-first-place "extras"?

nick1231

Apologies i thought i had already listed that information - its in Birmingham.

When you put it like that Adrian i can't see the point in even asking for the extra's as you're right they will probably be overpriced anyway.

i suppose the best way forward is to ask them to return my reservation fee - tell them that i'm prepared to offer 190k and see if they return back to me.

I would more than likely miss the opportunity to pick what fixings we would like (which is the main reason for buying the house lol) as it so far into completion and like other people have said its whether they will even come back if theres as much interest as the manager claims!

Time will tell - will have to see what the Sales Manager offers first.

Mulder00

Zoopla is hardly 100% accurate with valuations, so I'm surprised that you are concerned based on a valuation from there which only values it slightly less.

You were happy to pay what you paid for it when you reserved the plot, so not sure why a website which simply gave you a notional price would change your opinion. As for the extras, well, you should have got it in writing when you reserved - it is unfortunate that they are now turning around on this.

We reserved our place back in April (it's in the South East though) and it was pretty much, take it at the asking price, with no extras or incentives included or leave it. There wasn't even time for them to get the website up as the units went so quickly since being released on the Thursday night (we paid our reservation fee on the Saturday morning and was the last unit to go).

I think you are being short-sighted with the valuation and negative equity thing. As for the options that was supposed to be included and the dropping in price - I simply don't think many developers do this any more (at least not in my area as properties sell pretty quickly and if you don't want to pay the price, someone else definitely will).

If there are other people willing to pay £198995 without any extras, then the property is worth £198995 without the extras, regardless of what Zoopla claims.

EDIT: Re-reading your post about the extras, are you sure that you are not misunderstanding what was offered? Were you not offered the option to choose your extras which you have now lost out on as the roof is on? We pretty much had to agree most of the extras before the roof went on as much of it has to be done while they have access to the shell (installing extra plugs, outside taps, additional lights etc). Is it just a case of you waiting too long and you now have to take what they have given you?

AdrianC

Mulder00 wrote: »

EDIT: Re-reading your post about the extras, are you sure that you are not misunderstanding what was offered? Were you not offered the option to choose your extras which you have now lost out on as the roof is on? We pretty much had to agree most of the extras before the roof went on as much of it has to be done while they have access to the shell (installing extra plugs, outside taps, additional lights etc).

It's worth understanding the order in which construction progresses, and what that actually makes unavailable at each stage...

Foundations - can't easily change the basic shape.
Floors and walls - can't easily change door positions etc.
Weather-tight (roof & windows)
First-fix (wires and pipes) - can't easily change socket/tap positions.
Plastering & painting - can't easily change colours.
Fit-out - can't easily change cupboard layouts, doors.
Second-fix (sockets, switches, light fittings, taps)

If the place is only just weathertight, you still have time to make some choices. Just. If you move quickly.
If plastering is going on, then first-fix has been done, and your options are largely cosmetic.

csgohan4

The main reason i didn't buy a new build was the build quality these days as well as the overpriced nature of the beast of new builds they are.

I was shocked at first when I was told they would leave the flooring as bare concrete and I would need add my own flooring either through them or another company. Hence their asking price isn't so inclusive after all.

Personally I would walk or get as much extras/ discount off

You do not want to be ripped off or have poor value for money but that is all relative compared to a Woman's Scorn

makeitstop

nick1231 wrote: »

Apologies i thought i had already listed that information - its in Birmingham.

When you put it like that Adrian i can't see the point in even asking for the extra's as you're right they will probably be overpriced anyway.

i suppose the best way forward is to ask them to return my reservation fee - tell them that i'm prepared to offer 190k and see if they return back to me.

I would more than likely miss the opportunity to pick what fixings we would like (which is the main reason for buying the house lol) as it so far into completion and like other people have said its whether they will even come back if theres as much interest as the manager claims!

Time will tell - will have to see what the Sales Manager offers first.

Sales staff will often have a decent reduction percentage that applies to "extras".

So, what "may" seem (or be priced as) a £1000 extra, may to the sales people be available at perhaps £600. 40% lower than any advertised option price.

If I were in your shoes, I'd be tempted to pul the plug, stating how you feel you were too hasty and that it doesn't seem like such good value. Of course, you can let them know you would be more comfortable to proceed with a purchase if they were to offer flooring throughout the house, but as it is, you think you will withdraw.

These people do not want to lose a sale, and you may be surprised to find that they become much more accommodating once they see you are serious.

However, I do feel the time to discuss it and bargain hard has passed. So, it could prove almost impossible to get them to agree to anything, as they know you (and more importantly your GF) really want it.

Might have paid to read up on how to negotiate before reservation.

nick1231

well I had a response and despite the sales manager confirming they would be willing to look at what they can do - they've sent me an email explaining they are not budging and its the offer as it is or leave it.

time to speak with the gf

nick1231

Decided to right back to them explaining its going to be difficult to move forward with this if there arent willing to try and meet me half way.

Said we are still intersted and would like to leave an offer of £195k as we would need the extra money to pay for the flooring etc or alternatively pay full if they can provide this for us.

i'm hoping this is a reasonable compromise that they will accept so this can be resolved...