New Build offer good enough?

KeyWise

The figure that matters most is what the house would sell for second-hand, not the headline price. Lenders generally value a new build net of incentives, so a 5% contribution on £465k (about £23k) helps your cash position but doesn’t mean the house is worth £465k. A quick check is to look up resales on this developer’s older estates nearby on the Land Registry or Rightmove sold prices. If similar houses resell well below that, that gap is your real negotiating point, and it’s worth more than any upgrade.

On leverage, the numbers you posted are in your favour. 18 plots unsold at about two a month means the developer has well over a year of stock left on that site, and your plot doesn’t complete for 10 or 11 months. Developers protect the headline price because it sets the comparable for every future sale, so you’ll usually get further asking for extras, or a bigger contribution, than a straight price cut. Sales offices also tend to have more room near their half-year and year-end.

For the upgrades, prioritise things that are cheap while the house is still being built but messy to add later: extra double sockets and data points before the walls are plastered, an outside tap and socket, full-height tiling while the bathroom is being fitted, and turf rather than rotavated soil. Wardrobes and kitchen upgrades are worth asking for, but they are the developer’s highest-margin items, so expect resistance there. Get every agreed extra written into the reservation paperwork with the plot number, and budget for an independent snagging inspection before completion.

Qurrat786

https://forums.moneysavingexpert.com/discussion/comment/82167090#Comment_82167090

Sounds sensible. By kitchen upgrades, I meant things like upgraded cupboard doors/units, worktops, integrated appliances, a better oven/hob, or extra storage options.

Personally, I'd definitely consider upgrading to an induction hob before moving in if it's something you want. It's usually cheaper and easier for the developer to fit it during the build than for you to replace a brand-new hob later. Plus, induction hobs are quicker, more energy-efficient and easier to clean.

My view would be to prioritise anything that's difficult or disruptive to change later, and leave the more cosmetic upgrades until after you've moved in. 😊

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82167343#Comment_82167343

Good Points, but it is normal for a new house to sell at a premium, so comparing with similar houses that are not brand new anymore is fine, but you would expect them to be lower.

RelievedSheff

https://forums.moneysavingexpert.com/discussion/comment/82167354#Comment_82167354

We were sceptical when we moved into our current house in March about the induction hob have always had gas previous.

Having lived with it for 6 months now I don't think I would go back to gas. I love it. So much quicker and so much easier to keep clean.

The people we bought our house from paid extra to the developers to fit the induction hob and I believe from memory it was about a £650 extra over the standard gas hob. But they seemed to spend a lot on extras that we had got as standard with a different developer such as turf, outside tap, outside light, power and lighting to the garage, etc.

At the end of the day you need to strike a deal that you are happy with for that house. It doesn't matter of anyone else thinks it is a good deal.

HouseHuntingAmy

Fellow FTB here, watching this with interest and a notebook.

On your question about whats inexpensive for the developer but valuable to you: almost everything on your list, because they pay trade prices. An induction hob that would cost you £500 retail probably costs them half that fitted while the kitchen is going in anyway - same with the extra sockets, tiling to the ceiling and the under-cabinet lighting. Thats why the standard advice is to push on spec rather than price: the developer can say yes to £3k of retail-value extras while barely feeling it, whereas another 1% off the headline sets a precident for every other plot.

Two things from my reading-ahead file. First, get every inclusion written into the contract with the exact product named - "flooring throughout" should say Amtico Spacia in the paperwork, not just in the sales office chat. Second, agree everything before exchange: changes after exchange become variations with admin fees attached, and suddenly the cheap extras arent cheap.

The turf point others made is worth holding firm on. A bare mud garden in month one of ownership is a miserable housewarming present to yourself.

silverwhistle

Induction hobs really aren't that expensive any more, and I've just had a new one fitted in my refurbished kitchen: around £250, as I can't be bothered to check exact price. My GF wired it in so that saved me money, but not an issue with electricians around.

What is the situation with electric vehicle charging points and solar panels? They are a pain to install afterwards, particularly the latter with the need for scaffolding again. If a few are included push for more as the panels themselves are really cheap these days. You may not have an EV yet, but might in future and if you resell much more likely buyers will be looking for a charge point or even wiring ready for one.

Edit: The advice above of getting a professional snagger is also a very good one!