Can I negotiate the price of a new build in a big housing development?

Skytunnel31

Me and my fiancee were only a couple of weeks away from signing a contract on new-build house in a new development before lockdown happened.

With it being a new build, the price was above the odds even before the crisis, and I was originally told there would be no price negotiation.  But now with the prospect of a large fall in house prices, I feel I need to negotiate the price down before I sign.

Who would I talk to on that?  My main contact has been the site foreman, but I imagine I'd need to speak to the boss of the development company themselves, or the original sales agent?  The foreman had said early on; "you'll never hear from those boys again; their job is done, just you come to me for everything"

But interestingly I got an unexpected call from the sales agent last week just to tell me development has started back up but that there will be a delay on the expected completion date.  I took the opportunity to raise my concern over the housing market, but was told that there has been no change to Northern Ireland house prices, and that N. Ireland historically has not been hit as bad as the rest of the UK when prices drop, and that +95% of my to-be neighbours still plan to go ahead with their sale (though for all I know they could have already signed a contract before lockdown?)

My house was to the first of 25+ houses completed on the road I'm on, so it doesnt even have post code yet!  I feel like I'm taking a risk on the developer evening finishing the rest of the road (let alone the development) and not abandaning it and leaving us living on a building site for decades!

I feel my options are either wait for the market to reopen here and wair and see how prices change, or just pull-out and look elsewhere.

Waiting will probably take too long before there is actual evidence of a price drop, and we need a house by August at the latest.  

And we've already pulled out of one house prior to this due to issues found by the surveyor; so we aren't keen on going through that again.

Can anyone give any thoughts or advise?

ImThatGuy

Of course they're going to tell you there will be no impact for house prices, they want all the money they can get.

Our POC for our new build told us the company needed the money and they wanted to complete as quick as possible to regain lost money. Since we exchanged the remaining houses on our estate have dropped roughly 10k with better incentives.

It's your call and only you know the local area but go in at a lower price and see what they say. If you dont ask, you dont get. 

AdrianC

Of course you can ask.

They might say yes, they might say no. If they say no, the ball is back in your court. Go ahead, or walk?

GDB2222

Any major price drops are going to take longer than August to happen. Why is that date essential?

jimbog

Yes, you can

Skytunnel31

GDB2222 said:

Any major price drops are going to take longer than August to happen. Why is that date essential?

We get married in August, and my rent is up this month; so I'm having to move into her brother's old room at her parents house.  Original plan was I would be living in the new house by now

GDB2222

Maybe you should rent for a while? I really don’t know what will happen to house prices, but a 10% drop would make renting look cheap. 

numbercruncher8

Sounds odd for the foreman to say that, guessing this isn't a big chain of housebuilders then.
It is worthless talking about the housing market with a vested interest, you need to do the research yourself and decide. If you feel the price is above the odds, look for what comparable properties are charging, if it still above the odds then I don't see why you should be persuaded into paying it.

The comment about N.Ireland baffles me though, were prices there not unbelievably high in 2008? The property price index shows that prices have still not recovered from the last bubble. Peak to trough prices must have halved, and few other places must have been that bad.

AdrianC

Skytunnel31 said:

GDB2222 said:

Any major price drops are going to take longer than August to happen. Why is that date essential?

We get married in August, and my rent is up this month

What do you mean by your "rent is up"? Why did you give notice on your rental in April, already in lockdown, knowing that your new-build would not be completed? That would be the only reason you would HAVE to leave now - and even that would probably have wiggle-room if you speak to your landlord, because it's very unlikely they've got anybody lined up to move in yet.

As for getting married - firstly, you may well not be - and secondly, so? You can live in a rented property whilst married, y'know.

eddddy

Skytunnel31 said:

With it being a new build, the price was above the odds even before the crisis, and I was originally told there would be no price negotiation.  

TBH, if you ask a question like "Is the price negotiable?" - the answer is very likely to be "No".

It's only when you start to walk away that the price might become negotiable.

As long as the developer thinks there's a chance that you'll pay full price, there's no reason for them to negotiate.