New build incentives

ftb2020

So should we be entitled to the £3,000 voucher for reserving is my question? She is saying we are getting a better deal with the £10k but as we are already paying for this ourselves should we be entitled to the £3000 voucher aswel?

[Deleted User]

Your negotiating line is that you will reduce your offer to £305k, take the £3k voucher and then use the £10k saving to put the extras in yourself. 

In reality, unless youve got a spare £10k then you probably wont want to do this.  By allowing you to add it on to the price of the house it allows you to mortgage it and save finding £10k upfront.   So they are doing you a favour structuring it this way.

You can try negotiate or complain but just be mindful of what your response will be if they agree to do £305k with nothing inside. 

KAP0365

ftb2020 said:

So should we be entitled to the £3,000 voucher for reserving is my question? She is saying we are getting a better deal with the £10k but as we are already paying for this ourselves should we be entitled to the £3000 voucher aswel?

Deleted_User is spot on. No, you’re not entitled to it. Including flooring is the offer, because it supposedly would have cost more if you’d added it on separately to the basic price of £305k, and they are instead doing it for 10k, perhaps it would have been 15k? It’s therefore added 10k to the price of the house instead of £15k for example. Therefore the price would have been £320k+ for example without the incentive. The only way you can prove it wouldn’t be that much is by pricing like-for-like yourself. Of course they are still making a profit. They are under no obligation to combine offers but if you’re not worried about losing it, tell them you’ll pull the offer if you don’t get the voucher too. You may risk losing the house plot though. 

If you have a spare 10k+ to spend on the flooring yourself throughout, then change your offer, take the lower mortgage and ask for the £3k voucher.

Safe'n'Sound

All down to the wording on the reservation form. Right now, you should be disappointing with anything less than 3.5% incentives and should be looking at 5%, whatever shape or form that comes in. Anything more than 5% is not impossible but will get lenders asking serious questions. A good developer/broker combination can put the individual incentives into certain areas which bypass lender stipulations. But the original and most important work lies in the buyers hands and negotiating the discount/incentives in the first place.