Help! We want a New build!!

MobileAddict

Hi there, I wonder if there is anyone out there who can help!

We are looking at a new build house and a few months ago, went through the whole thing of reserving a plot. Anyway, turns out that the houses on the development aren't selling too well, which I can only imagine is because of the climate at the moment.

So, we are wondering what the profit margins generally are on new builds. Its not that we are trying to get something for nothing, but originally, we thought all the talk of the credit crunch was spin-doctoring, but now we realise the situation. We still want the house so much and yet we are fearful of increasing our mortgage, so wonder if we were to try and haggle, what percentage could we go off not to offend and shoot ourselves in the foot!!

Any help gratefully received!!

Many thanks...

Zoe

glen8

have you already sold your house, on the market or wanting to part-ex?

PasturesNew

An indication of size/features of house and location would help people from those areas give a better viewpoint.

beingjdc

Looking at the Leeds example recently posted in another thread, there are certainly some places where 20% reductions are happening on new build. I've heard 40%, but I'm sceptical of that (other than at auction, which I think is a good avenue at the moment if you want a new build and have the cash).

Benefits_Blagger

MobileAddict wrote: »

So, we are wondering what the profit margins generally are on new builds.
Zoe

new builds are like driving a new car off the forecourt, as soon as you take possesion it has lost thousands as it is no longer new.

so there should be a fair of margin which you could haggle down.

MobileAddict

Hi there, Thanks so much for all the input. The house is a 3 bed in Stafford. Semi-rural location I suppose and a good finish, but really,wea re just wondering what sort of margins there usually is!

In respect of the developer, its not a grand scale developer like a Wimpey or Barratt, but part of me thinks that that will go in our favour because they wouldn't have the capital to sit on the properties waiting for the market to alter.....

Super grateful for all your help!!!!

MobileAddict

Oh, and no, we haven't yet sold our house and our plot isn't ready until August (so far, although has already been put back from June!). Ours is on the market though...

overlander

If it is a small builder they will not want money tied up in an unsold house. If you really must buy the house pitch in with a -20% offer and blame it on the credit crunch. That way if it drops 30 % from the builders price you are only down 10 %.

MobileAddict

Sorry, just wanted to push this up againi for any further advances!!

Is anyone in the process of buying a new build and got a good deal?????

gemima

Hi,

We are in the process of negotiating but not much further down the line. We offered -20% and so far they have come down -7% plus stamp duty paid and carpets. She wanted me to come back to her today and I haven't but will do tomorrow sticking to my guns.

I will keep everyone up to date with the progress (if any).

overlander

It is a breath of fresh air that people are talking about how much they can get off instead of how much more they need to pay in a few months. This massive bubble is about to explode and the quicker the better high house prices are in no ones interest except the banks.

They won't deal at -20 % wait another couple of months, then demand 25% :cheesy: