New build house price.

Kingsmill

Evening all.
Long term reader, but this is the first time I've had a need to seek some advice.

We're in the process of purchasing a new build from a large builder.
We got very close to exchange around 3 weeks ago, however the chain broke at the last minute for a stupid reason that should have been resolved 2 months earlier, but that is a separate issue.

The builders agreed to wait while we try to resell, which was nice, although business on the development has been a little slow for them, with few other houses selling since we reserved ours so not surprising
During the time since the chain broke, they were putting a bit of pressure on us to lower the price to secure a quick sale, but other than that we're quite reasonable.

We have resold the house recently at the same offer as before, which is great.
However, during the 3 months process, we have noticed that the houses that they are selling on our development are now 5k cheaper than what we are currently paying. not only that but they are offering a contribution towards stamp duty on top.

Would it be reasonable to ask for this difference off the builder at this stage, we negotiated half of our stamp duty off with them initially but they were adamant they wouldn't go any lower than that.
If they say no, could we in theory cancel the reservation and lose the fee (£500) and then simply buy one of the other identical but cheaper houses? we can't seem to see anything in our agreement that says if we cancel, we can't.

Thanks
Kingsmill


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supa34

You can renegotiate if not do what you said and Start afresh. They prob haven't got that much interest. New plots get more interest when they start to fill up and lights are on at night. But act before the new year. Demands usually go up after Xmas with more viewings and interest.

Crashy_Time

supa34 wrote: »

You can renegotiate if not do what you said and Start afresh. They prob haven't got that much interest. New plots get more interest when they start to fill up and lights are on at night. But act before the new year. Demands usually go up after Xmas with more viewings and interest.

Probably not this year..


https://www.theguardian.com/business/2018/dec/13/uk-property-market-at-weakest-since-2012-as-brexit-takes-toll-rics?CMP=share_btn_link

jonnygee2

Would it be reasonable to ask for this difference off the builder at this stage

Yes. They are clearly struggling. As a buyer you should take advantage of this.

ReadingTim

Kingsmill wrote: »

Would it be reasonable to ask for this difference off the builder at this stage, we negotiated half of our stamp duty off with them initially but they were adamant they wouldn't go any lower than that.
If they say no, could we in theory cancel the reservation and lose the fee (£500) and then simply buy one of the other identical but cheaper houses? we can't seem to see anything in our agreement that says if we cancel, we can't.

It's perfectly reasonable from your perspective to ask, but it's also perfectly reasonable from their perspective to refuse. Perspectives differ.

You could withdraw, but it doesn't mean you have any kind of legal right to buy the cheaper place - they could simply refuse to do business with you, as any business can. Is that a risk you're willing to take?

pinkteapot

I think you need to be a bit tougher and more hard-nosed than you're sounding. It's a business transaction. They're a business. If you can lose £500 and then save £5k, of course you'd do that. They'll understand (even though their sales person will make a noise about it).

Put it to them straight - "I have noticed that other houses on this development are now cheaper so obviously I'm no longer happy paying the price we've discussed as the market's moved on in that time. My revised offer for the house is £x."

You'd have to be a bit gentler if you were dealing with a vendor at a second-hand house as everything is more personal, but haggling with a builder is like haggling on a new car.

babyblade41

Are new builds so generic now that it doesn't matter which one we buy they are all the same

I have only bought a new build once and it was just one from an independent builder and I was involved from the start ..still hated the damn thing ( I would never make a developer)

I tend to fall in love from the get go on a home and can bypass decoration , remedial works (within financial restrictions)plus I wouldn't want to go through the conveyancing process when already started on one

If it was me I'd possibly ask for a bit of an incentive and hope I would be lucky but it wouldn't be a deal breaker

Grenage

Five grand is five grand; why wouldn't you go in at the current price? If the shoe was on the other foot, you can be damn sure they would.

Kingsmill

Thanks for your responses and advice everyone.

We have decided we are going to go back to them.
After all, anyone who walked in off the street today would get a much better deal than us for the exact same home.

I don't anticipate they will say no outright, I suspect they will try and negotiate some kind of contribution, because they wont want to put our house back on the market, as they would probably have to drop the price anyway.

There were other developers we were interested in first time around, and because we were having a bit of pressure applied to us and there was a risk our current developer would pull out, we obviously went back and had a look for a contingency. these other developers are very keen to 'steal' the sale so to speak, and are offering quite attractive offers, so we are not afraid to pull the plug and change developer.

Obviously, as others have said, we would never in a million years dream of doing this to a private seller, but this is business!

I'll let you know what they say.

billy2shots

I have just had an offer on anew build development accepted. Given market conditions (Christmas, Brexit, financial markets etc) I think deals are there to be had.

The house is currently built with turf and upgraded flooring and kitchen so I was told they would not negotiate very much. I walked away several times before I was called back. In the end I manged 7.5% off which equates to £44k. Stamp duty of £17.75k is covered by them and the rest comes off the house price.
I have heard of discounts of 10% plus but I think all the stars have to align for that and it is development depending. That 7.5% I'm happy with as it will mitigate the new home premium.

Hope that helps to suggest what is doable.

Crashy_Time

https://www.theguardian.com/society/2018/nov/30/uk-housebuilding-revolution-65000-prefab-homes-go-into-production