New Build Negotiating

ash4040

stressedout45 said:

The incentives that you will be able to negotiate depend on how popular the development is and what stage the build is at.  

We exchanged contracts on the purchase of a new build a few weeks ago, and complete next month.  The build of our plot was underway at the point we reserved.  We had to choose our kitchen, tiling and flooring options shortly after reserving because they were at that stage of the build of needing to know what we wanted.

  We managed to negotiate an included kitchen upgrade (integrated appliances and the choice of various work tops and cupboard doors), flooring throughout, and some chrome spotlights in one of the bathrooms.   

Turf in the back garden is already something our developer includes as standard. I believe this is unusual though.  I mention this because I often hear of people buying with other developers negotiating for this to be included.

I would say there is usually room for negotiation of the price -  The show home for our house type was available to purchase at the time we reserved… but we were not keen on its location on the development… that plot is still for sale now, and would actually be out of our price range if we were to come along can reserve it right now.. but it was well within our range at the time!  So the prices are definitely overinflated.  

In terms of the deposit - we are using the proceeds from the sale of this place, as with the usual property chain situation.  I believe if we had been first time buyers, we would have paid the upfront deposit on exchange.  

Our lender requires a higher deposit of 15%, rather than the 10% that would be required if we were buying a non-new home.. I have no idea if that is usual or not if I’m being honest! 

We paid a £500 reservation fee.  

The developer will probably ask that you speak to their financial advisor to get ‘financially qualified’… you don’t HAVE to do this, but this is not a big deal and will show them that you are serious and in a proceedable position. 

Regarding exchange deadlines.. Oh God - this caused me so much worry.. because of many ups and downs in our chain, we exchanged contracts over two months after the initial 28 day deadline!  Our solicitor repeatedly told us not to worry, because we were motivated buyers and got all our completed paperwork etc sent back very fast, so the developer could see that we were serious and held onto us as buyers.   There solicitor told us that he had reiterated to the developer that the problems were nothing to do with us, it was issues with the bottom of our chain.. he told us that the week before exchange, the developer admittedly did start to get a little bit twitchy and make noises about the amount of time it was taking. Fortunately,  we exchanged soon after that conversation!  

(I will say that I have read many horror stories about the developers being a lot less patient than ours have been with us - at the end of your initial 28 day reservation period, they are well within their rights to put the property back on the market if you are nowhere near exchange). 

One other thing to mention is that I very strongly advise that you use a solicitor who is specialised in newbuild conveyancing because it is a whole different ball game.  

good luck and I hope any of this rambling has been useful in some way to you.  

Sorry to jump in on the thread but can you please explain what you mean by this:

One other thing to mention is that I very strongly advise that you use a solicitor who is specialised in newbuild conveyancing because it is a whole different ball game. 

Why is this important? Thank you

74jax

I've been with a top UK housebuilder for many (many) years.
Basically ask for what you want.
Can I have plot x at xx price. Can I have a turfed lawn, Can I have carpets, can I not have the mirrors in bed1 but bed2,
Can I have xyz and 123.

The sales advisor facing you will put ALL your requests to the director or sales manager - if you dont ask at this point, it will be harder after.

When is their half year, full year?  Deals can be made for completions in these months. 

Who is the site manager, what has he completed on.

You do not have to use their mortgage company or solicitor, just make sure they are new homes specialists and not joe blogs solicitors who have never done a new build sale before.

Be nice, meet the builder etc.