Realistic Discount on New Builds When Ready To Proceed

Davey16

We have already sold our porperty and are living in with family. We are looking at buying a new build and have at least a 10% deposit put away depending on house price. I know a lot of people say don't buy now but we can't live in for too much longer and don't want to rent!

The two house builders we are looking at are bellway homes and charles church! (North-East Cleveland area)

How much should we be looking at offering under the asking prices of new houses prices £280k up to £420k in the current market.

Does anyone have success stories of large saving buying new builds?

To end, after speaking to a saleswoman in the bellway show home last week she informed me that they had 'stock' properties avaialable; 1 selling at £280k 2 at £295k and 1 at £425k. After re-visiting the show house today another sales lady (wasn't very friendly or helpful) fed me the line that there was 'lots of interest in all plots' and no 'stock' properties.

Any advice or help would be much appreciated!

Thanks

Jorgan_2

The best discount I have heard of on a new build comes from two years ago, before the current problems hit. A buyer had no chain and could complete in time for the builders year end. He didn't make an offer, he asked the builder for their best price, if it was acceptable to him, he would proceed. House was on the market for £595k, they came back with £450k, he took it.

Davey16

Thanks for the reply, that is a good discount for the time and something that we should surely see more and more of in coming months/years? with the current market!

The lady i spoke to today told me that a bid of £390k had been turned down for the £425k house and that i'd be really lucky if she could get me the £280 house for £250k. Surely there must be more discount avaialable than this, with what is expected to come!

I think i'm going to put an offer in writing to the head office to bypass the sales lady! is 30% plus too much too expect? are builders that desperate to sell?

thanks!

brit1234

Davey16 wrote: »

We have already sold our porperty and are living in with family. We are looking at buying a new build and have at least a 10% deposit put away depending on house price. I know a lot of people say don't buy now but we can't live in for too much longer and don't want to rent!

The two house builders we are looking at are bellway homes and charles church! (North-East Cleveland area)

How much should we be looking at offering under the asking prices of new houses prices £280k up to £420k in the current market.

Does anyone have success stories of large saving buying new builds?

To end, after speaking to a saleswoman in the bellway show home last week she informed me that they had 'stock' properties avaialable; 1 selling at £280k 2 at £295k and 1 at £425k. After re-visiting the show house today another sales lady (wasn't very friendly or helpful) fed me the line that there was 'lots of interest in all plots' and no 'stock' properties.

Any advice or help would be much appreciated!

Thanks

Sorry but you are mad to buy a newbuild in the current market even at a discount. Welcome to the world of negative equity.:lipsrseal:exclamati

Davey16

Well the negative equity problem may be unavoidable for us then because as i said we are currently living in with family. We can't stay there too much longer so need to buy, and surely we'll get more discount off a new build than anyone else is willing to give on their exisiting home?

geoffky

Clever people are renting. financially naive are buying..

skintlass

geoffky wrote: »

Clever people are renting. financially naive are buying..

Thats a sweeping statement if ever I heard one. People have lots of reasons for selling and buying houses, being clever or not doesn't always coincide.

player

I think it's apparent Davey is aware of the risk of negative equity, but this is a good example where he is after a home not an investment. He is right about driving a hard bargain.

Being a businessman yet not a homeowner I would say don't be afraid of putting in a low offer to gauge a reaction, there is bound to be elasticity on prices - some seller will display more than others.

m00m00

a non new build at 280k I wouldn't expect to get offers above 250k in the current market, let alone a new build.

if a builder told me they wouldn't drop below 250k on a 280k new build, I'd laugh in their face, and await the call from them a week later pleading me to reconsider.

SquatNow

Realistically the question is irrelevent.

The OP is unlikely to get a mortgage offer (or a mortgage offer woth accepting) on a new build with only a 10% deposit.

The OP is simply NOT in a position to proceed and the builders will spot this and will show them the door, rather than talking down the value of their houses.

What it comes down to is while the OP may not care about going into negative equity, THE BANK WILL.

ioscorpio

Bellways and other developers are doing good deals on stock plots especially if the development has been completed and they want to sell the last few plots so that they can close the sales office down.

The majority of people coming thro their doors are wanting part exchanges or assisted sales, so if you are in the postion to proceed, you are in a strong position, but you will have to use their mortgage broker.

So few people are visiting new home sales offices, you will be welcomed with open arms. The negotiator will have to refer to their sales manager to get the best deals, so don't be afraid to put in a cheeky offer.