Developers saying they won't budge at all on the price

Alex321

Just after some opinions please.

My partner and I are part/x our house and have put in an offer of 285k on a 300k new build. We've had a very firm no from the developer who rekons they will not be moving at all on the price as the houses are selling so well. The development is in its first stage and according to their website every single house is still available (minus 3 which have been reserved) but none are sold.

We're not interested in negotiating hard and have offered what we think is right, and more importantly what we can afford so this is our first and final offer. 20 minutes after having that conversation with the developer their mortgage advisor called us to see what our next move was. We've told them we're considering other options, which we are. My issue is that as this house is our favourite I don't want to go and make offers on other houses if this is just part of some game the developers are playing. Are the developers likely to call back? Or do we just move on?

This is our first new build so thanks for your help!

[Deleted User]

Move on, if they call they call, but you can't wait around for something that may never happen. And you can't make it happen if they're not already biting.

Thrugelmir

Sell your own house. Then there might be some room for movement.

SuzieSue

They will only call back if they think that they won't be able to sell the house for a higher price but that might be several months down the line.

The larger ones don't generally play games - if they say that they won't accept a lower price then they mean it.

kinger101

If it's a relatively new site, they'll be very reluctant to knock down the price unless it becomes absolutely essential due to cash flow problems. If there are multiple stages, the price people pay will be available on the land registry website while others are still up for sale. So the prices those first properties go for is quite important.

If you can stretch your budget, you would probably have more luck negotiating on finishes (kitchens, bathrooms, etc).

Gingernutty

They won't budge.

New builds are to BTL investors what nectar is to honey bees. They'll get their asking price.

Don't bother unless you're prepared to part exchange or if you've found your 'forever' house as you are odds on to lose money on the resale.

kingstreet

You can't expect to negotiate down the purchase price of the newbuild, unless they are screwing you down on the PX on yours.

A builder will usually be more flexible on the PX to keep its headline prices steady for surveyor comparables.

What's happening on the other side of the equation?

Alex321

Thanks for the replies. I hadn't thought about the sold price being available... They've offered the full market value for our house, and will pay the EA (which I gather is standard). Sounds like we would have been better off asking for extras instead. Oh well, lesson learned for the next one!

Jon_B_2

We seem to have a thread like this every week.

Simple answer. The market is hot right now. Don't expect a reduction of list price. Incentives vary on developers.

Alex321

Thanks for the replies. I hadn't thought about the sold price being available... They've offered the full market value for our house, and will pay the EA (which I gather is standard). Sounds like we would have been better off asking for extras instead. Oh well, lesson learned for the next one!

WeAreGhosts

I'm in the same position - new build, same price point - but the new build I'm looking at has been on the market 6 months and it's the last on the development. Developer (a small one) says they won't take any less than a few grand under the £300k.

I went to view with the thought that there might be a decent deal seeing as it's been on the market so long, but nope.