New Build devloper paying stamp duty

tuck60

We are looking at a new build Redrow property that won't be ready until July. We have put an early bird fee down on the plot but they would not discuss incentives, stamp duty etc until our current house is on the market which it now is. 
We have a video meeting with them on Sunday to discuss the above and wondered what tactics if any people have used to try and negotiate for a substantial contribution on stamp duty from the developer? I'm sure they will be bullish as may have sold many houses quickly while there was no stamp duty required. 

UnderOffer

I thought the negotiations were done before putting a deposit down? You are in a very weak position and not even proceedable as your house is not even sold yet. What happens if several weeks/months pass and you’ve not had an offer and the new build want you to exchange on the new house, a lot of builders state within 28 days. 

tuck60

UnderOffer said:

I thought the negotiations were done before putting a deposit down? You are in a very weak position and not even proceedable as your house is not even sold yet. What happens if several weeks/months pass and you’ve not had an offer and the new build want you to exchange on the new house, a lot of builders state within 28 days. 

We put an early bird offer down before the plot was released. This gives us priority on the plot, it is not a deposit. We can now negotiate with them on upgrades etc before moving to the next stage of mortgage offer etc. We have already been through the checks with their financial team and our mortgage advisor. 
The issue is stamp duty, we would like them to contribute to this but wanted to gage opinion how likely this is with them not having to worry about this over the last 12 months. 

tinytiddles

We had stamp duty paid as part of our incentives (although they changed it into a deposit contribution instead when the SD announcement was made). I just asked for it, no point being polite or bashful in these circumstances 😁. What I would say though is if you’re going to negotiate before the current SD exemption expires make sure you get something written down to say they will offer you something else at an equivalent value if Rishi announces an extension after you’ve completed negotiations. Luckily our developer was upfront and honest and offered something else without prompting but I have heard others using different developers say that they were told to go and swivel unfortunately. Good luck!

RelievedSheff

We didn't really have to do any negotiation with the sales team when we bought our new build. They did it for us!

We got £10k deposit contribution, a very good part exchange deal on our old property, stamp duty paid, legal fees paid, moving costs contribution and flooring throughout. The plot had already had the asking price substantially reduced compared to previous sales of the same house type. 

But this was on an already completed plot that was stood there costing them money. They just wanted it off their books.

You are not quite in the same position as the plot isn't completed. But I should think you would get at least the stamp duty paid if not a bit more. The sales teams are given a pot of money to give as incentives on each plot.

GDB2222

RICS are predicting a reduction in house prices after the stamp duty holiday ends. Goodness knows whether they are right. Nevertheless, it’s a bit risky to sign a contract now, at today’s prices, for a sale in the summer. I suppose that you are worried that the whole estate will get sold unless you act now?


I am confused why the first post referred to an early bird fee, if no money was paid?

https://www.redrow.co.uk/tv/videos/generic/ways-to-help-you-move-early-bird

That says a deposit is payable but it’s refundable if you don’t go ahead. I guess that means that the OP is not over a barrel.

jimmyjammy001

RelievedSheff said:

We didn't really have to do any negotiation with the sales team when we bought our new build. They did it for us!

We got £10k deposit contribution, a very good part exchange deal on our old property, stamp duty paid, legal fees paid, moving costs contribution and flooring throughout. The plot had already had the asking price substantially reduced compared to previous sales of the same house type. 

But this was on an already completed plot that was stood there costing them money. They just wanted it off their books.

You are not quite in the same position as the plot isn't completed. But I should think you would get at least the stamp duty paid if not a bit more. The sales teams are given a pot of money to give as incentives on each plot.

The developer must of been very desperate not to lower the price and get that printed on the registry otherwise it would given every other buyer a great position to haggle the price down plus valuations for mortgages would of come in alot lower which would mean more problems, offering you deposit contributions, stamp duty, legal fees and other bribes to keep the price up is a common tactic used by developers to keep prices artificially high.