No one can predict the future, but.....

Mark4444

We are in the process of buying a new build and were about a month away from exchange preCovid.  We were able to negotiate a full stamp duty contribution (£17k) but it’s been suggested by a few friends that we should now push for more.  Being candid I wasn’t even thinking about this as an option so would appreciate a wider view on how to approach given all
of the uncertainly, perhaps from people who were in a similar situation back in 2008 (I know that was very different to now, but it’s the closest fit I have in living memory).

What I will say is that unless I loose my job we fully intend to move due to needing a larger house, and this one is certainly the one for us so I am not prepared to walk on the sale, but I do want to limit my exposure if possible given it’s likely to be a buyers market.

Thanks

Vestraun

There’s been many threads on this in the last few weeks, yes it’s likely there will be a drop but no one can predict how much. You need to decide how much the house is worth to you, if you haven’t exchanged you can certainly negotiate again but you need to be prepared to walk away if you don’t get the price you want. 

RelievedSheff

You don't get if you don't ask but equally I wouldn't be surprised if the developers refuse to give any further incentives or reductions on the price. They don't have too. If you don't buy the property they will just remarket it and someone else will, even in the current climate people are still buying houses.

graphs

Lower your offer. You are leaving yourself mightily exposed.

GDB2222

Vestraun said:

There’s been many threads on this in the last few weeks, yes it’s likely there will be a drop but no one can predict how much. You need to decide how much the house is worth to you, if you haven’t exchanged you can certainly negotiate again but you need to be prepared to walk away if you don’t get the price you want. 

I agree. You, the OP, can’t negotiate unless you’re prepared to walk away from the deal. I'm really surprised that this is the only house that you could possibly buy?

Bear in mind that you could end up on a half finished estate.

Mark4444

It’s of course not the only house we could buy, but it is the one we like most which was my point before about not wanting to walk away. The seller isn’t aware that’s my intention, but I thought that context would be useful in relation to any responses. 

We will wait to see how things feel post lockdown and make a revised offer based upon what we see happening in the market - it’s still a good 6-8 weeks from exchange once everything is up and running so we have time.

Cheers

Mark4444

Ah, also, as for it being a half finished estate we are one of the final 6 out of 150 houses, and all houses are now “sold” but not all exchanged much like ourselves.  Of course that might change but im not concerned at this time. 

blue_max_3

It's hard to predict what may happen. But the fact that you and a few others have already raised this spectre, means that it is getting into the psyche. People are also pushing for a stamp duty suspension too (though I've seen no evidence this is being considered).
Ultimately, it's all about sentiment. The press loves to headline large drops and can really drive that sentiment. But maybe they have other things to focus on currently.
You'll have the same decision with any property you try to buy unfortunately.

Comms69

Heres the thing, prices will drop, anywhere from 5-25%, i would suggest that the lowest prices will be in March - August next year. But you must be prepared to walk away when you negotiate. If you arent there's no aces in your hand so to speak. 

numbercruncher8

I don't think much advice here will be useful as the lack of detail will force people to generalise. In fact it'l broadly break down into people that think prices will fall, so you should get a bigger discount, or those that people will think they will rise in the long run so it doesn't matter. There will be another bizarre view - you gave your word on a value, you should stick to it.

The only thing we can guess at is the purchase price, c.£500k, and that it is a new-build. So the current discount is around 3%. But we don't really know where that lies in relation to the wider market. Discounts on these things in one form or another are really common anyway (ie free furniture, discounted price, stamp duty paid, etc). IMO the initial price of many new builds means that they build in some room to offer one of these. So, if your discount is coming on top of a discount maybe thats good, if not then maybe not.

I think you are in a strong position, and you'll see signs such as 'last few remaining', but almost always all of them won't complete and for an estate of this size there will always be one or more properties on the market even if you wait some time.
What would say is compare the price paid to the local area, look at what the new-build premium is relative to an older-build place of equivalent sqft. Comparable properties are a big tell for me. For instance, if older style properties are going for £200k less, then I reckon a new-build is overpriced. Having new stuff is worth more, but not that much more to me.
If house prices are going to fall it isn't going to be linear, and IMO new builds are more likely candidates for a fall. Where I am looking I see new builds that are a few years old that are struggling to shift when being resold, because they don't get HTB.

steampowered

What's the size of your deposit? 

If your deposit is only say 5%, then it could be a risky move, as you'll be in negative equity if the value of your house drops by 5%.

If you have a larger deposit and the house suits your requirements for the foreseeable future, it's much less risky - since you aren't risking negative equity and have enough time to wait for the housing market to recover.