Negotiate price on new build

djdaface

How does one go about getting in touch with builders / developers


Because im a first time buyer I would like to find opporunities to buy a new development with a perctage deposit paid in my area.

Saving £20,000 for the needed deposit is going to take years, But if i could find a new build with a market price of £200,000 and they are willing to pay the deposit instead of any discounts etc its dooable, but I havent a clue where to look. :eek:

carpmaster

Are you joking? You don't have any deposit at all but will commit to a £200,000 new build if someone pays the deposit for you?

Have you had your head in the sand over the last few months? You will probably get the same place half price in a few years.

sarkin

[FONT=Arial,Helvetica,sans-serif]
Dear Mr Preest
Friday 16 November 2007
The expansion of the New Build market in recent years has resulted in an increasing array of discounts and incentives being offered on New Build properties. This continues to be particularly prevalent for New Build Flats. It is essential that as a responsible lender, we continue to take steps to protect our customers by ensuring that we have suitable security for mortgage purposes.

Therefore, with effect from 19 November, Alliance & Leicester will be restricting the maximum LTV available for New Build Flats and Nearly New Flats to 70% LTV.

Please note:

A New Build Flat is defined as one where the property is being purchased directly from a builder or where the property has not been occupied before.

• Larger property conversions also fall within this definition, specifically this will include conversions of properties which have not previously been lived in, for example the conversion of a former office block.
• The refurbishment of an existing flat will not normally be classed as a New-build flat.

A Nearly New Flat is one that was bought from a builder or developer in the last 12 months or is on a site that is still being developed

Our lending decision will be based on the standard 'Open Market' valuation and not the 'Projected Market' Value as is currently the case for New Build Flats.

All other policies remain unchanged.

For more information



Kind regards

Raj Uppal
Director of Mortgage Operations



Here is the email from A&L like I said no longer lending without 30%deposit will see if I can find the other email


[/FONT]

plane_boy2000

These ones always make me laugh. When you look at a new build there are so many variables that its like asking how long is a piece of string!!!

I live in a new build which I bought 3 years ago, and managed to negotiate a 5% discount on. At the time I was very pleased as I actualy got a bigger house in square footage than I could have got by buying something older.

This development is quite big and is still running, and will be for another couple of years, but things still sell well. I have a friend who has just bought on the same development and managed to achieve a similar discount - they tried to play hard ball and lost the house they really wanted as people are literaly waiting for things to be released here. To try to advise someone what discount they will get on a new build is really difficult because every area and development is different, so my advice would be to ask them what they could do for you. You may be surprised as most of the sales negotiators just want to sell, and they will have been given guidelines on what they can offer on each plot.

hearts

sarkin wrote: »

[FONT=Arial,Helvetica,sans-serif]Dear Mr Preest[/FONT]
[FONT=Arial,Helvetica,sans-serif]Friday 16 November 2007 [/FONT]
[FONT=Arial,Helvetica,sans-serif]The expansion of the New Build market in recent years has resulted in an increasing array of discounts and incentives being offered on New Build properties. This continues to be particularly prevalent for New Build Flats. It is essential that as a responsible lender, we continue to take steps to protect our customers by ensuring that we have suitable security for mortgage purposes.[/FONT]

[FONT=Arial,Helvetica,sans-serif]Therefore, with effect from 19 November, Alliance & Leicester will be restricting the maximum LTV available for New Build Flats and Nearly New Flats to 70% LTV.[/FONT]

[FONT=Arial,Helvetica,sans-serif]Please note:[/FONT]

[FONT=Arial,Helvetica,sans-serif]A New Build Flat is defined as one where the property is being purchased directly from a builder or where the property has not been occupied before.[/FONT][FONT=Arial,Helvetica,sans-serif]

• Larger property conversions also fall within this definition, specifically this will include conversions of properties which have not previously been lived in, for example the conversion of a former office block.
• The refurbishment of an existing flat will not normally be classed as a New-build flat.

A Nearly New Flat is one that was bought from a builder or developer in the last 12 months or is on a site that is still being developed[/FONT]

[FONT=Arial,Helvetica,sans-serif]Our lending decision will be based on the standard 'Open Market' valuation and not the 'Projected Market' Value as is currently the case for New Build Flats.[/FONT]

[FONT=Arial,Helvetica,sans-serif]All other policies remain unchanged.[/FONT]

[FONT=Arial,Helvetica,sans-serif]For more information [/FONT]

[FONT=Arial,Helvetica,sans-serif]Kind regards [/FONT]

[FONT=Arial,Helvetica,sans-serif]Raj Uppal[/FONT]
[FONT=Arial,Helvetica,sans-serif]Director of Mortgage Operations[/FONT]

[FONT=Arial,Helvetica,sans-serif]Here is the email from A&L like I said no longer lending without 30%deposit will see if I can find the other email[/FONT]

[/quote
sensible ;-)

dolce_vita

plane_boy2000 wrote: »

These ones always make me laugh. When you look at a new build there are so many variables that its like asking how long is a piece of string!!!

I live in a new build which I bought 3 years ago, and managed to negotiate a 5% discount on. At the time I was very pleased as I actualy got a bigger house in square footage than I could have got by buying something older.

This development is quite big and is still running, and will be for another couple of years, but things still sell well. I have a friend who has just bought on the same development and managed to achieve a similar discount - they tried to play hard ball and lost the house they really wanted as people are literaly waiting for things to be released here. To try to advise someone what discount they will get on a new build is really difficult because every area and development is different, so my advice would be to ask them what they could do for you. You may be surprised as most of the sales negotiators just want to sell, and they will have been given guidelines on what they can offer on each plot.

But if everyone saw it as in their interest to play "hard ball" and offered nothing more than 80%the prices would come down. That's a fact.

Just because you pay 50k more for a house, it doesn't make you 50k richer.
It makes you 50k poorer.

High house prices are a bad thing not a good thing.

When will people realise?

djdaface

carpmaster wrote: »

Are you joking? You don't have any deposit at all but will commit to a £200,000 new build if someone pays the deposit for you?

Have you had your head in the sand over the last few months? You will probably get the same place half price in a few years.

LOL

theres meant to be a 5% drop in prices as a nationwide average not a 50% drop, and the area i live in isnt due to drop much at all. Seaside resorts will always remain popular.

carpmaster

djdaface wrote: »

LOL

theres meant to be a 5% drop in prices as a nationwide average not a 50% drop, and the area i live in isnt due to drop much at all. Seaside resorts will always remain popular.

Well go and borrow the £200,000 then, and come back in 2 years time to tell us how you're getting on.

Rover

The market will slide to a final correction ~2011/12, even in sunny British seaside resorts
I wonder how the OP got on ? Give us an update the.real.me

Is_You

We are thinking of PX with Barratt. They are valuing our house on Wednesday. The house we want to buy from them (won't be ready till May) is up for 265,000. Providing they give us what we want for our house would we still be in a position to reduce their asking price, ideally below the 250?