Negotiating the Price of a Newbuild - When and How?

Chumy

A new TW site will open 30miles away from us soon. We are interested in buying a 5bed house (2.5storey- 3levels)

Questions 

1. Should we reserve on the release day or hold off and see how it goes? How should we start the negotiations

2. They have listed it at 540k(1803sq ft). Same TW property @ 470k(1560sq ft) less than 3 miles away is also available but will add 15-20minutes to my commute as well as being smaller (Too small for us as 3 out of the 5 rooms are single).  Can we ask for the house to be sold to us @ 500k based on this? Any other way we can get them to move on the price?

3. We will be happy to pay the full price to get all show room options included and stamp duty paid. Is this even possible? So we are looking for all finishings and appliances(AEG) upgrades to their top ranges. What discount on the price can equate to this(rough estimate)?

4. Should we get out own solicitors and brokers? They have offered free use of their recommended ones

House is in Southampton if it makes a difference

Any other suggestions welcomed

* we are not in a big hurry but ideally want to stop paying rent ASAP.

* we have school age kids (primary school)

* we are looking for houses over 3 levels as we have a live in nanny and want an element of privacy

*we are looking for a house built in the last 10years
*We have lived in 2 old houses and 3 new builds and hated the old houses so its not an option for us.

Thank u

pinkteapot

New-build developers are very reluctant to drop the price, preferring to throw in free extras. Especially true of the first phases of a development as buyers of later phases will see the sold price data. I think you've got no chance of getting £40k off unless the house has been built and finished and stood there empty for a few months.

If you walk in on day 1 you won't get anything off and won't get much thrown in.

The house you're looking at is 15% larger than the one you're comparing to for 15% more money. If that one at £470k sold then their asking price doesn't unreasonable to be honest.

As I said, they prefer to throw things in than drop price, so if you're happy to pay full price with the top spec thrown in free, that's what you ask for. Just list out what you want thrown in, see what they say, and walk out if they say no. You're dealing with professional sales-people - keep it business-like.

AdrianC

Chumy said:

1. Should we reserve on the release day or hold off and see how it goes? How should we start the negotiations

2. They have listed it at 540k(1803sq ft). Same TW property @ 470k(1560sq ft) less than 3 miles away is also available but will add 15-20minutes to my commute as well as being smaller (Too small for us as 3 out of the 5 rooms are single).  Can we ask for the house to be sold to us @ 500k based on this? Any other way we can get them to move on the price?

3. We will be happy to pay the full price to get all show room options included and stamp duty paid. Is this even possible? So we are looking for all finishings and appliances(AEG) upgrades to their top ranges. What discount on the price can equate to this(rough estimate)?

4. Should we get out own solicitors and brokers? They have offered free use of their recommended ones

House is in Southampton if it makes a difference

1. If you want to do it on the release day, then just say "Hello, we want to reserve this property for the full asking price, please.". If you want to negotiate, wait a while for them to start to realise they won't sell at full asking price.

2. "But something else elsewhere is cheaper, so can I pay less, please" is not going to work... You can ask, but in the words of the old sign "please do not ask as a refusal may offend"

3. You're happy to pay full asking price, but only if they throw £17k of SDLT and a few grand of upgrades in...? That's not exactly "full asking price", is it...?

4. Always find your own solicitor. The solicitor is the ONLY person on your side in the whole transaction. Using one the vendors are paying is a massive conflict of interest. Why do you think they're offering you a grand and a bit of fees for nowt...? Because they know that'll work out cheaper for them than having a truly independent solicitor look closely at the paperwork... Mortgage broker? Doesn't matter. Find the cheapest and most suitable lender you can, however you can.

By the way, if it's the Rownhams site, then you have competition... https://forums.moneysavingexpert.com/discussion/6098805/reserve-now-or-hold-off-buying-off-plan