New Build Negotiations

SenseandSensibility

Hi,

My husband and I (both FTB hoping to use the Help to Buy scheme) are planning to reserve a new build plot on Sunday. The house has been on the market for a few months having already been completed, so will be ready to discuss fittings etc and hopefully move into sooner. We have been advised that it is becoming increasingly common to negotiate down the price of new builds (this one is currently listed at £234,999), but we are keen to know by how much? We don't wish to be regarded as timewasters by starting with a figure that is too low, but equally would like to reduce the price by some degree. We are also planning to negotiate on the inclusion of extras/fittings etc.

Thanks for your help!

FinallyStoppedLurking

No different to any other house I'd have thought. 5-10%. 

pinkteapot

Usually, when buying off-plan, you can't get anything off the price but can get some extras thrown in. If the house is complete, like this one, you've got more chance of negotiating. It will depend however on how many houses are still to be built on the site. If this is in the last phase, the builder will just want rid. If there's still more to go though, they won't want a low price showing up on Land Registry as future buyers of other plots will see it. 

You'll be dealing with a well-trained, hard-nosed salesperson. In good news, go in as low as you like - they're not going to get offended like a vendor might. In bad news, they can spot a mile off if you're serious about the house and will refuse to budge on price knowing you'll back down because you want it.

Ideally, you want there to be another house on another development that you like just as much, so you can tell them you'll buy whichever one offers you the best deal. Anything else locally that you'd consider? Even if this is your preferred house, it'll still help you get a deal if you can play two developers off against each other.

2bFrank

Just depends on the development, if its the last few houses left and they are having difficultiy shifting they may move on price. However if there are newer properties to be built then they wont shift on price as it will affect the prices of the other properties yet to be sold.

You will have more luck negoitating if you are not using any schemes (HTB etc). The builders know that you will not be able to afford a house without the scheme and wont negoitate on price (although you can usually get some extras thrown in to a certain amount). If you are confident you will be able to get a property without the scheme and can look elsewhere that will give you a better position in negotiations.

HanPop

If the house is already completed then you won’t be able to get any extra fittings etc, you’ll just get what’s already there. Our house was already built and had magnolia walls and I wanted white and they said no as it was completed and signed off so sold as seen. Our kitchen was ‘upgraded’ but we had £5000 they ‘give’ you for extras and even though we didn’t pick it this upgraded kitchen was ‘taken’ out of that money. However the purchase fell through but we managed to rebuy it later and because they just wanted rid of it we got the overall house price cheaper and didn’t pay stamp duty and didn’t pay for any of the ‘extras’. Ours was one of the last to be sold on the estate though so that does make a big difference. 

SenseandSensibility

Thank you, in the end we reserved the house at the sale price, because of which they were willing to throw in £5000 of extras. We got upgraded kitchen units/appliances, turf to the rear and upgraded flooring throughout, so it couldn't have gone much better!

Thrugelmir

I'd turf the rear garden myself. Builders simply bury everything. Dig over and add a good amount of horse manure. You'll have a much better lawn in the longer term. 

csgohan4

upgraded stuff from builders are usually charged at a premium, so 5k of extras may probably be less than half of that if at all. I would trust your local tradesman who you know than strangers

SenseandSensibility

Thank you both for your advice. Thankfully the development we are buying on (in the village where I was born and raised) is using local builders and landscapers when it comes to the gardens and turfed areas (we were shown two other proprerties that have recently sold that are the same as ours, and the turf used looked to be of good quality). Extras are also being sourced from local companies which have always had a good reputation, so we fortunate to be able to trust the arrangement we reached.

csgohan4

I still suspect the developers will provide an uplift in premiums as they are subcontracting to those local builders, where as I suspect would  be cheaper if you went direct