FTBs looking at new build - how to get a deal on optional extras?

Da_Crojanz

We're looking at a 3 bed new build property for 205k. On their website the developer advertised that on properties over 200k, they offer incentives such as deposit contributions, mortgage contributions or up to 15k in "finishing touches". Ts and Cs apply, obviously.

From our meeting with the sales office, it transpires the supposed finishing touches include features that are actually essential, including flooring and putting down turf / pebbles on the back lawn. As you'd expect, without these finishing touches the spec of the house is also basic throughout.

We love the house but the upfront cost is going to mount up if we don't get some sort of deal on this. Our visit to to the sales office was unhelpful and the agent drifted between opaque and outright dismissive toward our questions on whether or not we could get any of the incentives.

Any hints at how to negotiate on getting at least the lawn and flooring thrown in? Anything else would be a bonus.

foxy-stoat

Ask for everything to be included and see what they agree to. Do you have a DIP or offer for your mortgage and how proceed-able are you?

If you have sold your current property or moving out of renting with a full mortgage offer from a lender and a good sized deposit you have a a better chance of them agreeing to everything and get the plot reserved and exchanged quickly.

If your LTV is high then its best to get to full full stage, telling them about all incentives offered before reserving your plot. If you have something to sell or you have sold with a long chain then dont expect to get that much of a deal.

Our lender dropped the amount they were willing to lend by £10,000 when they found out that we had our stamp duty covered by the developer, which was also £10,000.

Good lucks.

Da_Crojanz

foxy-stoat wrote: »

Ask for everything to be included and see what they agree to. Do you have a DIP or offer for your mortgage and how proceed-able are you?

If you have sold your current property or moving out of renting with a full mortgage offer from a lender and a good sized deposit you have a a better chance of them agreeing to everything and get the plot reserved and exchanged quickly.

If your LTV is high then its best to get to full full stage, telling them about all incentives offered before reserving your plot. If you have something to sell or you have sold with a long chain then dont expect to get that much of a deal.

Our lender dropped the amount they were willing to lend by £10,000 when they found out that we had our stamp duty covered by the developer, which was also £10,000.

Good lucks.

Thanks.

We are FTB, have a DIP, can proceed pretty much anytime and have 10% deposit. The mortgage we are going for is only around 2x our gross annual income so according to mortgage advisor we will have no problem getting accepted. He did say we'd have fewer products to choose from due to 10% deposit but that we'd have no issues getting them.

Stamp duty is only a few hundred pounds and the deal we are most interested in is the one where they offer optional interior decor extras, so shouldn't affect much with the lender.

They do offer mortgage / deposit contributions too but we figured it would be easier to get the extras.

M_Python

Flooring and turf are not essentials. It is quite common for new builds not to have either.

As you are paying over the £200k minimum, surely you will get the £15k worth of extras so not sure what your problem is.

Da_Crojanz

M_Python wrote: »

Flooring and turf are not essentials. It is quite common for new builds not to have either.

As you are paying over the £200k minimum, surely you will get the £15k worth of extras so not sure what your problem is.

There are Ts and Cs which say the extras are at the builders' discretion and the agent we spoke to suggested that they weren't offering the extras as the homes were "flying out the door."

She was shockingly unhelpful though and the website says different on the extras.

BoGoF

The truth is if they are 'flying out the window' then there is no need for them to offer incentives. Are there lots of reserved plots to show that this may be the case?

If the incentives are discretional then they will be given only when needed.

foxy-stoat

Da_Crojanz wrote: »

She was shockingly unhelpful though and the website says different on the extras.

Sounds like the sales person who I spoke to when I was looking, developer's name sounds like a type of bread

Bought off a different developer and the sales person was very helpful and easy to deal with.

Da_Crojanz

BoGoF wrote: »

The truth is if they are 'flying out the window' then there is no need for them to offer incentives. Are there lots of reserved plots to show that this may be the case?

If the incentives are discretional then they will be given only when needed.

I see what you mean, it is however a tad deceitful of them to advertise said incentives both on the website on a huge banner right outside the development.

AdrianC

Da_Crojanz wrote: »

From our meeting with the sales office, it transpires the supposed finishing touches include features that are actually essential, including flooring and putting down turf / pebbles on the back lawn.

They aren't "essential" at all.
You may not want them to install those things, because you may prefer to DIY or get somebody else to do them - better and/or cheaper.

Any hints at how to negotiate on getting at least the lawn and flooring thrown in?

Ask very nicely.
If they say no, and you think it's a deal-breaker, threaten to withdraw from the purchase. Be prepared to follow through on this, if you're going to do it.
If you've already exchanged, then the time for negotiation has passed.

Da_Crojanz wrote: »

There are Ts and Cs which say the extras are at the builders' discretion

Ah, the joys of the small print...

and the agent we spoke to suggested that they weren't offering the extras as the homes were "flying out the door."

So they may be quite happy for you to carry out your threat to withdraw.

Da_Crojanz wrote: »

I see what you mean, it is however a tad deceitful of them to advertise said incentives both on the website on a huge banner right outside the development.

Bet the small print refers you to the Ts & Cs... Perhaps other properties on the development are proving less popular?

It's very simple. Supply and demand. If more people want properties than there are properties, then they are not going to get the incentives. If there are more properties than buyers, then you can start to ask for reductions and/or "freebies".

[Deleted User]

When I looked into new builds I was shocked at what was deemed to be 'optional' extras - flooring, grass, an outside tap! Things you'd imagine are essential to a home all came at an extra cost. Was one of the main reasons I was put off new builds.

OP, like all typical sales people they will say anything to get you through the door. You are going to have to either call their bluff and threaten to pull out, or just accept the extra costs if you're not prepared to lose the house.

If you do go for latter, it'd be worth investigating what it would cost to put in some the extras yourselves once you have moved in. Might work out cheaper than going through the developer.

AdrianC

Deleted_User wrote: »

When I looked into new builds I was shocked at what was deemed to be 'optional' extras - flooring, grass, an outside tap! Things you'd imagine are essential to a home all came at an extra cost.

Seriously...?

"Shocked", "essential"?