When to stop negotiation on a deal for a new build

metallicdreams

Me and my wife are in the process of moving houses and looking to move into a new build utilising the HTB Equity scheme. Our minds are set on this 4 bed property by Bellway however as they are currently in the build stage, they are not willing to discount anything on the price and alternatively offered 8k contribution towards flooring and max of 7k towards stamp duty. At one point Bellway were offering full stamp duty contribution in their ads (Dec time) however they decided to take the offer out in the new year. I feel what they have offered is a good deal, considering that we will get the flooring done to our liking, however the fact that they were offering full stamp duty previously makes me feel like I am only getting the second-best deal. 

To spice things up, I put an offer with Taylor Wimpey on one of their 5 bed house (less sq ft and 1 less garage though than Bellway’s 4 bed) and they have come back offering a discount of 25.6k, either as discounted house price or via stamp duty contribution or a mixture of both up to that limit. Now although they are offering this discount it comes to the same cost for me if I were to proceed with either, however we still prefer the Bellway one, as we get to choose the flooring and prefer Bellway’s floor layouts, whereas Taylor’s flooring is all done and the bedrooms are smaller.

I have informed both parties that I shall consider the offer and get back to them. However my question is, can I go back to Bellway and say I have a better offer from another builder and unless you are wiling to add anything (further stamp duty contribution or even any optional extras like washer dryer instead of a washing machine, downlights instead of pendants in the bedrooms etc) to your final offer, we are more inclined to proceed with Taylor’s offer, just to try and see if Bellway can come back with a better offer to win us. Or has this reached a point where this is the max they can do and there is no point in me asking for anything further or pretending to decline the offer to get something extra?

Any feedback would be much appreciated as I hoping to get back to Bellway later today/tomorrow.

sal_III

How long is a piece of string? Who knows at what position Bellway are. For what is worth leveraging another offer you have made is unlikely to help you, the leverage usually works the other way around.

Given the fact that they reduced the SDLT offer from full to partial across the board, points that they are less inclined to offer incentives for whatever reasons. 

You have nothing to lose by asking for a better offer.

metallicdreams

Thanks a lot for your response sal_III. As the build is not complete, I feel they are not that desperate to sell it off hence are staying firm with their responses regarding stamp duty even though I have asked 2 or 3 times. However I am only thinking is it worth asking one last time as I now have an offer from another party. 

eddddy

There's no harm in asking - salespeople tend to be thick skinned, so they're unlikely to be offended, if you try to push them.

But bear in mind that the salesperson will have been told how much discount and incentives they can offer. If they've already reached the limit of what they're allowed to offer, however hard/well you negotiate, they won't be able to go any further.

pinkteapot

Never any harm in asking - be blunt and to the point. They'll say yes or no, then you can decide. You'll hit a point where you try a few different tacks and they don't offer anything further. 

Be pretty forceful - tell them that with the offer you have from the other builder you're going to go with them. Make Bellway think they're losing you - then you'll see if they've got any more to give. Nothing to stop you going back after and saying you've changed your mind and will take their offer. 

metallicdreams

Thanks a lot for your advice eddddy and pinkteapot. I have dropped the bomb with them saying we are more inclined towards Taylor Wimpey's offer as its a 5 bed and they said its a shame to lose you and obviously if it seems like a better offer and if its a 5 bed to go for it. I said if there was anything better in terms of stamp duty or optional extras included, it would have been great to which they said what they have offered us was the absolute best what the Sales Director had advised. They did ask if I have decided yet though, to which I said not yet as I still haven't received the Memo of Sale to be able to go ahead with reserving. So I said hopefully the Memo of Sale should come through in a couple of days and I shall be making up my mind. I said if anything changes at their end do let me know and they also asked to let them know what my final decision would be either ways. Now its a waiting game to see if they will come back with anything better........ fingers crossed. 

[Deleted User]

If it was November or December, you'd probably have a better chance because of the end of year results they are then trying to increase.., but in February, I think you will have to take what they are offering.  This is also probably why the discount offer has changed.Which do you want more, the discount or the type of house? Personally, I would have thought the house if you are so keen to take the risk of buying a new build with possibility of build defects and smaller rooms than an older house..

metallicdreams

Thanks for your response deannatrois. I am thinking same as you, Feb not being a good time for deals. Unfortunately, we did not have an offer on our property in Nov/Dec, else we would have reserved the property with Bellway when they advertised full stamp duty contribution. Even with Taylor offering the 5 bed at the same price as Bellway's 4 bed, I am still keen on the 4 bed as I like the layout of it and it has a double garage as well. I ll probably wait a day and if I don't hear back from them I am going to ring them on Thursday and accept their offer, hopefully no else takes it by then. There is a risk of buying new builds with possibility of build defects however the NHBC cover and the Builder's own 2 year guarantee is there to cover for most of it hopefully. We bought an old house which we live in now and there were issues like leaking taps etc, which we could not complain back to the seller as he wouldn't care anyway. So the way I see there are pros and cons on both sides. 

[Deleted User]

https://hoa.org.uk/advice/guides-for-homeowners/i-am-managing-2/fix-problems-in-a-new-build-home/

A lot seems to depend on the team working on a new build development.  I'd advise, if any completed properties are on the development, asking the owners how happy they are with their property.  Some developments do have build quality problems.  Leaking taps are a lot easier to fix than brick defects (another thread on this site).

file:///C:/Users/PC/Downloads/CBP-7665.pdf  A House of Commons Briefing Paper on New Build Housing Defects - Issues and Solutions

Obviously I hope this New Build will be fine, but the comment 'you have more protection buying a toaster' is very applicable if you do hit problems with the build quality.

metallicdreams

I have just been on their FB community group and people seem to be happy with the build quality and their staff. Thanks for sharing the thread, will have a detailed look. 

Cash-Cows

Freehold? Might need to factor that in to your negotiation.