Discount on new builds

COYI123

Hello everyone , was just wondering if anyone has any clue on how much discount you can normally get on new builds ? Me and my partner are thinking about moving to one soon and we were just wondering how much discount on average normally you could get percentage wise . It’s not a highly sought after site and there are lots of houses for sale , and the one we want has already had it’s fixtures and fittings chose , so we haven’t even had a choice on what we would like so would’ve thought this might help with getting a discount . Have heard some people say they have had 10% off before , but that seemed a lot to me , would be good to know everyone’s views , kind regards 

Sarah1Mitty2

Worth trying for at least 10-15% in the present climate I should think.

RelievedSheff

The plot we bought had already been heavily discounted so they wouldn't drop it further but we did get a £10k deposit contribution, part exchange on our previous property, stamp duty paid, legal fees paid, moving costs contribution and free flooring throughout.

COYI123

Sarah1Mitty2 said:

Worth trying for at least 10-15% in the present climate I should think.

Wow really ? The property we are looking at is £420k so you do think it’s possible to get it for around £380k? Thanks for the reply by the way 

COYI123

RelievedSheff said:

The plot we bought had already been heavily discounted so they wouldn't drop it further but we did get a £10k deposit contribution, part exchange on our previous property, stamp duty paid, legal fees paid, moving costs contribution and free flooring throughout.

That sounds amazing , the one we are looking at hasn’t been discounted at all , and is around £420k so hopefully we might be able to get for around £380k ??? 

eddddy

Assuming it's a medium to large developer, the situation will probably be like this...

• You'll be negotiating with a salesperson - who earns commission

• The salesperson will have been told the maximum discount and/or maximum freebies they can give away (it might be a 10% discount or a 0% discount)

• The less discount / less freebies the salesperson gives - probably the more commission the salesperson will earn

So your challenge will be to negotiate the salesperson down to their maximum discount, whilst they're trying to negotiate you up to the smallest discount they can. (How good are your negotiating skills?)

And you have to make the salesperson believe that you'll walk away, if you don't get the discount you're asking for. (e.g. If you ask for a 10% discount, but the salesperson believes you'd still buy with a 5% discount - obviously they'll say 'no' to the 10% discount.)

COYI123

eddddy said:

Assuming it's a medium to large developer, the situation will probably be like this...

• You'll be negotiating with a salesperson - who earns commission

• The salesperson will have been told the maximum discount and/or maximum freebies they can give away (it might be a 10% discount or a 0% discount)

• The less discount / less freebies the salesperson gives - probably the more commission the salesperson will earn

So your challenge will be to negotiate the salesperson down to their maximum discount, whilst they're trying to negotiate you up to the smallest discount they can. (How good are your negotiating skills?)

And you have to make the salesperson believe that you'll walk away, if you don't get the discount you're asking for. (e.g. If you ask for a 10% discount, but the salesperson believes you'd still buy with a 5% discount - obviously they'll say 'no' to the 10% discount.)

100% what I was thinking , my negotiating is quite good I would say . The funny thing is , we literally will only pay £385 max which is around 10% off so if they don’t drop to that , I will literally be walking away 

kingstreet

Check Companies House and establish when the builder's quarter/half year/year ends are as they may be more focused on getting SOMETHING completed for then.

You will also nearly always have a better chance of an incentive package than a discount as the discount affects the price and therefore future comparables for later sales.

Postik

I was under the distinct impression that not all that long ago they weren't offering any discounts at all, not least because as they sell them they don't want buyers in the near future finding out that other people got discounts.  My understanding is if they do negotiate it's usually by way of paying your stamp duty or giving you free flooring.

A couple of years ago they couldn't build them fast enough and seemed to have an endless supply of people queing up wanting to buy them so didn't need to provide any discount.  Of course things have changed significantly now so I suspect you might be in a stronger position to negotiate, but if you turn up and act like you've fallen in love with the place they will have you over a barrel.

COYI123

Postik said:

I was under the distinct impression that not all that long ago they weren't offering any discounts at all, not least because as they sell them they don't want buyers in the near future finding out that other people got discounts.  My understanding is if they do negotiate it's usually by way of paying your stamp duty or giving you free flooring.

A couple of years ago they couldn't build them fast enough and seemed to have an endless supply of people queing up wanting to buy them so didn't need to provide any discount.  Of course things have changed significantly now so I suspect you might be in a stronger position to negotiate, but if you turn up and act like you've fallen in love with the place they will have you over a barrel.

Yeah fair enough , but like I said it literally won’t even be me in a position to give in to them as me and my partner literally have £385 to give them , so it’s rather they take it or they don’t , and I definitely won’t be acting like I’m in love with the place , that’s a rookie move 

jonnydeppiwish!

Looking at new build around us, there is a good trickle of reduced prices on RM at present. It’s well worth offering 10% under as they can only say no.
I also don’t believe that anyone would be insulted by 10% under either or take you less seriously.