Discount on new builds

[Deleted User]

Some of them are priced to discourage you buying them outright. They want to lock you into shared ownership and rent, as well as service charges.

The actual price they need to sell at to make a profit is going to be a lot lower, but they will of course want to hold out for a shared ownership cash cow.

DullGreyGuy

COYI123 said:

Hello everyone , was just wondering if anyone has any clue on how much discount you can normally get on new builds? 

It'll vary massively from 0% to at least 10%

dimbo61

The whole new build market has changed over the last 12 months
BOE base rate was 0.1% in December  2021 and is now 4% and rising.
If you are in a strong position ?
No property to sell ?
MIP/AIP or £385,000 sat in the bank and half a dozen new builds finished and empty then drive a hard bargain.
Developers don't like to discount the price so get all the other extras you can
Stamp duty paid
Legal fees paid  but use your own local solicitors 
Fencing, garden, new trees 🌳 
Better bathroom and kitchen, carpets or flooring.
Alarm system, security lighting etc

Sarah1Mitty2

dimbo61 said:

The whole new build market has changed over the last 12 months
BOE base rate was 0.1% in December  2021 and is now 4% and rising.
If you are in a strong position ?
No property to sell ?
MIP/AIP or £385,000 sat in the bank and half a dozen new builds finished and empty then drive a hard bargain.
Developers don't like to discount the price so get all the other extras you can
Stamp duty paid
Legal fees paid  but use your own local solicitors 
Fencing, garden, new trees 🌳 
Better bathroom and kitchen, carpets or flooring.
Alarm system, security lighting etc

And HTB has ended, that must affect the prices?

Sarah1Mitty2

COYI123 said:

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 

Yes, if there is a downturn and rates stay high, 380k is still a lot of money though, are you sure the house is worth that?

fackers_2

COYI123 said:

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 

If they are offering to pay towards your mortgage insist on having that money off the value instead. It’s a con otherwise. 

They are also happy to throw in extras and definitely take use of those too! 

Blank11

fackers_2 said:

COYI123 said:

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 

If they are offering to pay towards your mortgage insist on having that money off the value instead. It’s a con otherwise. 

They are also happy to throw in extras and definitely take use of those too! 

Sorry I know this is an old post. I am looking for a new build hoping to negotiate. Why is the incentive mortgage contribution a con?

Sarah1Mitty2

Blank11 said:

fackers_2 said:

COYI123 said:

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 

If they are offering to pay towards your mortgage insist on having that money off the value instead. It’s a con otherwise. 

They are also happy to throw in extras and definitely take use of those too! 

Sorry I know this is an old post. I am looking for a new build hoping to negotiate. Why is the incentive mortgage contribution a con?

Because a discount means less debt to give yourself a cushion against rising interest rates.