do you think i sould haggle on price of new build?

f1slikki

hi there any help or advice would be much appreciated.

I am looking at purchasing a new build property however i feel that with the current market that the asking price is a bit too high.
going into the sales office tomorrow & looking to see about haggling a 10% discount, what do you think to this?any chance?
due to the current market the builders are now offering an 80% shared equity scheme to try to get interest in, I am very interested in the shared equity however on the basis that i could get the asking price discounted initially, the discount would amount to around £14,500 which is not alot when they have homes to sell & no buyers!

i have a couple of arguments up my sleeve for when i go in tomorrow which are:

1. The development was being done in 2 phases however phase 2 has now been put on hold & as yet no dates or information on when this may resume.

2. Phase 2 now on hold however 2/3 of phases 1 which is due for completion within the next 1-2 months is still available.

3. I was initially looking into purchasing in phase 2 but as this is on hold i am now having to look at phase 1 but as this is nearing completion i have no choices on things such as: kitchen units, power point locations or even location of radiators.

4. Most importantly they have 2/3 of their homes to sell and no buyers however i am looking to buy just at the right price for the current market.

do you guys think i have any chance or will i just get laughed at.

thanks in advance for reading this & sorry it is long winded..

geewhiz

I think you will have an excellent chance of getting a decent discount although 10% may be a bit high but is a good place to start.

A friend of mine done the same recently, he had bought in phase 2 but someone in phase 1 pulled out and the builder wanted them to take their place. Eventually got £9000 off but that was on a £240,000 house where they are not having problems selling phase 2.

Good luck !

davidla

Do you want/think you can get 10% off? Because if you do, then you need to start at 15% off. If you start at 10%, you will almost definitely have to settle for less. It's good to have strong arguments, but have you thought about their counters to your arguments?
David

Incisor

f1slikki wrote: »

hi there any help or advice would be much appreciated.

...

i have a couple of arguments up my sleeve for when i go in tomorrow which are:

1. The development was being done in 2 phases however phase 2 has now been put on hold & as yet no dates or information on when this may resume.

2. Phase 2 now on hold however 2/3 of phases 1 which is due for completion within the next 1-2 months is still available.

3. I was initially looking into purchasing in phase 2 but as this is on hold i am now having to look at phase 1 but as this is nearing completion i have no choices on things such as: kitchen units, power point locations or even location of radiators.

4. Most importantly they have 2/3 of their homes to sell and no buyers however i am looking to buy just at the right price for the current market.

do you guys think i have any chance or will i just get laughed at.

Are you bothered about being laughed at by a builder who refuses your offer but has houses he cannot sell? Laughing at you from their perspective would be to send you away with your tail between your legs. I am not saying that it will not happen, but if it does, you will end up with the last laugh when they struggle to sell. More likely you will be politely refused.

As for arguments up your sleeve, don't bother. You have nothing to justify, you are just taking along the prospect of a large pile of cash. If it is not a prospect of a large enough pile, you may be shown the door, but you certainly won't be able to tell the builder anything about the value of their properties which they did not already know.

f1slikki

thanks guys for your replys, most appreciated.
yeah i am looking for around 10% off so i'll go down tomorrow & see. good to know that someone has had a discount i know i am looking at a bit more however they aint selling phase 1 let alone considering building phase 2 so i can only try, where's the harm.

horza

A colleague of mine recently haggled Barratts down from £285,000 to £220,000 on a new build in Devon. I would start at a ridiculously low offer, say 30% and then be prepared to haggle.

New build flats in Plymouth again with Barratts were being advertised for £151,000 then suddenly down to £114,000, developers are desperate to sell.

Go for it, obviously depends on the market in your area.

f1slikki

thanks horza that was like music to my ears.
try my luck tomorrow & see. there is no harm in trying and i'm going to buy something anyway so may as well try to make it as good an investment for me as i can.

the builders which i am looking at have a few developments going in my area but they have all still got lots of availability & they are offering incentives now & shouting loudly about these so i think they must be feeling he pinch.

i'll keep you guys updated on any progress.
many thanks again.

MORPH3US

Go for it OP, you've got nothing to lose and I think you have a very good chance of getting the deal you want....

Please let us know how you get on....

M

f1slikki

I most certainly will & if i get a good deal i will be shouting it from the roof tops.

the more discount i get the lower mortgage i need therefore lower monthly payments with the way things are just now it can only get better.

thanks guys.

Dan_Collins_2

OUr best in our office so far is £250 to £170k but I am not sure about SO. You have to walk away, they will come back to you, however you will be competing with SO so you have to be careful.

geewhiz

Dan_Collins wrote: »

OUr best in our office so far is £250 to £170k but I am not sure about SO. You have to walk away, they will come back to you, however you will be competing with SO so you have to be careful.

That's impressive, we are not really seeing much of a slowdown in Edinburgh so £9000 off is the best in our office.

The market has slowed here but only meaning that the family sized houses in my street are now taking up to 4 weeks to sell instead of going in the first week. It's the first time buyers smaller houses that are for sale for a while, must be a nightmare trying to buy your first house now.

Ignore my advice about the 10% and go with the OP advice of about 30% !