Negotiating price on New Build property?

RossF1984

Hi Guys and Gals,

Looking for some advice with where to start on negotiating a reduction on the price of a New Build home?

We are looking at reserving a property that is just north of the £210k mark and wondered if what I could expect with regards to reducing the purchase price. Ideally, as with all of us I am sure, we want the best deal possible. Realistically we would like to pay around the £205k mark but with carpets, tiles and turf included. Wondering if something like this is achievable? Any tips, advice or stories very welcome.....

I was thinking of laying out my 'demands' from the off but wondered if there was a better way?? :rotfl:

lee111s

Are the houses selling well? If so, don't expect much.

We got nothing, but the houses on the estate have been flying off rhe shelves so to speak.

RossF1984

lee111s wrote: »

Are the houses selling well? If so, don't expect much.

Difficult to say really, the development is very new with only the show home finished and no other properties completed as of yet. We would be buying 'off plan' with an expected move in date sometime in April.

Surely these companies have margins that they work within as I imagine that the profits on new build estates can be quite LARGE.:eek:

mije1983

RossF1984 wrote: »

Surely these companies have margins that they work within as I imagine that the profits on new build estates can be quite LARGE.:eek:

They may well be large margins, but no business is going to turn down more money if they can get it just because their margins are large.

The only way you are really going to find out is to ask. But then they may not be completely truthful with you! If they haven't even built them yet then I don't think they will be in a rush to discount the price.

Chanes

If they start selling well you may find the price actually goes up and they won't negotiate extras or discounts at ll. Good luck anyways.

marksoton

RossF1984 wrote: »

Difficult to say really, the development is very new with only the show home finished and no other properties completed as of yet. We would be buying 'off plan' with an expected move in date sometime in April.

Surely these companies have margins that they work within as I imagine that the profits on new build estates can be quite LARGE.:eek:

Whatever makes you think that?

Have you ever considered the cost a new build developer has:

Procure the land
Get planning permission. Whilst almost certainly legally fighting local residents objecting to the scheme.
Agree LA T&C's ( Quite often with caveats requiring infrastructure and road upgrades)
Pay for utilities to be provided... Water,sewerage,Gas,telecoms etc
In most cases remediate the land and mitigate environmental concerns.
Build roads
Build a house
Sell said house

I'm not saying they don't make a profit. But there's a reason the consortium model is becoming more common.

Personally ( and i work on these sites) you're madder than mad mick from madsville to buy one.

csgohan4

I wasn't impressed when I looked at a new build from one of the large development companies. Small rooms, small everything else.


They even tried selling it to me saying it was the last one. I politely declined and it is still not fully sold 2 years on the development.


Wouldn't touch a new build with a barge pole.

hjd

Every house was a new build once..

davgray

RossF1984 wrote: »

Difficult to say really, the development is very new with only the show home finished and no other properties completed as of yet. We would be buying 'off plan' with an expected move in date sometime in April.

Surely these companies have margins that they work within as I imagine that the profits on new build estates can be quite LARGE.:eek:

We work to a margin of 20% roughly on sites, this in generally land purchased with planning already on. Strategic land without planning and once gained can offer more. As previous poster mentioned, there is a lot of cost the generally public don't see, generally the original land owner is the biggest winner

eddddy

It's just supply and demand. The developer will sell for the best prices they believe they can achieve.

If they believe they can achieve £210k, they will hold out for that price - irrespective of whether that represents a huge profit margin or a tiny one.

If they believe £205k is the best price they can get, they will take it.

AdrianC

RossF1984 wrote: »

Difficult to say really, the development is very new with only the show home finished and no other properties completed as of yet. We would be buying 'off plan' with an expected move in date sometime in April.

And how quickly have similar developments in the area sold? Are there other developments on the market at the moment?