New Build Chipping

creditmanessex

Anyone buying a new build thinking of asking for a reduction in the price due to the current situation?
What are the implications? ie if you got £x off, I was thinking you could ask for as a deposit contribution. If they said yes would you then need to get an updated mortgage offer?

onthemend88

We are not asking for a reduction in price as we are happy with the price we are purchasing at. House was valued by the builders surveyor at £296k and we are buying for £249k. Also, we are buying through a private builder (not a big developer) and he has been as good as gold with us. We have built up a very trusting relationship with him. He is providing us with loads of upgrades for no charge and will also be installing things for us when we eventually move in for no cost. 

The only reason we would ever have to negotiate a price was if in 6 months time our offer expired and the new valuation came in less due to the potential drop in house prices however, builder is aware this may happen and we will cross that bridge if it comes to it. 

Brock_and_Roll

I feel very sorry for buyers that already "committed" - pure bad luck with the timing. 
Would I advise a FTBer to buy a house today? Of course not. The fiscal impact of the crisis (i.e. higher taxes for us all to repay the billions the government has borrowed) will take years to work through, so certainly no pressure for new buyers to get on the ladder any time soon.

For people already exchanged or close to exchange - I would complete as agreed. Lifes too short anyway.

For those still negotiating I would most definitely negotiate hard as hell, and potentially if there is a liquidity squeeze on builders,  it could be like 2008 when you could fire off ludicrous low ball offers on a dozen similar properties and there would be a good chance that one would accept.

jimbo2108

I bought my first house in Jan 2020. If I was buying in todays market I would still go ahead as planned. Its only not a good idea if your not thinking of staying or using a house as an investment. I plan on staying here for 10years + when the market may or may not work in my favour. I don't know why people now ask for reductions in prices, you were happy to buy at that price before so why not now? Just seems like people are trying there luck.

creditmanessex

Because if you wait 6 months you could get for 5% less?

creditmanessex

And say I get another 10k off as deposit contribution. Does the mortgage offer have to be updated and re-posted?

davidmcn

creditmanessex said:

And say I get another 10k off as deposit contribution. Does the mortgage offer have to be updated and re-posted?

Your lender needs to know the new price, which will generally mean a new offer to be issued with the amended details.

creditmanessex

anyone offered lower offers as yet?

Thrugelmir

creditmanessex said:

Because if you wait 6 months you could get for 5% less?

If interest rates rise then there might not actually be any saving in the long term.