New build - Before exchange ?

metal675

With regards to my above post, is it advisable that I negotiate

- on phone
- in person
- on email, where I put it my deadline for them to accept a lower price ?

Thank you in advance

BJV

A lot will depend what the development is. Is it a land fill site or a nuclear facility?

Personally I would put health before anything.

BJV

metal675 wrote: »

With regards to my above post, is it advisable that I negotiate

- on phone
- in person
- on email, where I put it my deadline for them to accept a lower price ?

Thank you in advance

Ok so it sounds like you have decided you want the house but just want it cheaper?????

If that is the case I would always try in person. It is easier to sway people. Phone or email can sometimes miss the emotion or sentiment.

metal675

Well it is a water body related development nearby that will have increased ships there by causing pollution running on fossil fuels, traffic etc.

There are contradictory views - govt report dismisses the claims, the activists have their own reports.

metal675

As a clueless FTB any tips, dos and donts?

I plan to argue on the lower prices in the next phase that will be ready in a years time and asking them to match that.

The one I reserved is ready to move and the developer wants to complete by end of the year, which means they want to get rid of it before the end of the year.

Also the banks valuation has come up £1000 lower than the agreed price. Is that usually normal or does that mean I am paying more than actual value?

Can I use that in negotiating as well?

Thanks

metal675

Does someone have any thoughts on above post as I am due to exchange in few days ?

Has anyone done that with a large developer and have they agreed ? This is different to negotiating with an individual with a property to sale. The negotiator on the other side will be someone from their sales team.

chappers

valuation of -£1000 is neglible and I would have thought that a lender would just take a view on that and OK it.
Negotiating over an if, but or maybe.
It's a moot point as to whether the development will affect house prices, the jobs it creates might increase the value of local properties.
I still don't understand if your motive is property value or health.

As was said right at the beginning of the thread, if you have doubts walk away, loss/gain in value is almost impossible to quantify until the development is built and the effects actually happen.
Say for example you manage to get the house for half price and the effect of the development over the long term is to reduce the property prices by 20%, your loss after several years could dwarf the discount you receive.
On the other hand the development might never happen.

metal675

Thanks for your response.

I do understand your point and they are fair. However for that I will have to attempt to renegotiate first and then see and hence the queries in post #16 and #17

chappers

Sorry never negotiated on a new build, I would certainly be using at least the valuation as a starting point. I expect the sales person has a limit as to the discount they can offer and then the developers themselves have a base limit.
You could of course try saying you have changed your mind an think you would rather buy one of the cheaper ones next year.
Your success/failure will probably be more determined by the demand for the properties rather than you using the toxic development as your argument, if others aren't being put off by it then I wouldn't expect the developers to budge

metal675

True and fair point if others dont consider it as toxic. What I have seen is that investors are not concerned by it and are buying to rent it out.

Does anyone have thoughts on best medium to negotiate this with sales team of a large developer

- Email: Put down my arguments and why a reduction is justified
- In person: Walk into their office and discuss
- Phone: Call up and renegotiate

Should I also give a deadline for them to accept ? I mean should the negotiation be - you have X days to accept of deal is off, or a request to reduce type thing ?

Many thanks for all the help so far