Negotiate price on new build property?

Steedie

Steedie

Steedie

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Hi guys,

I've been given the go ahead with regards to the purchase of my first home today. Spoke to the mortgage advisor today who says I've been approved and given "Authority to Proceed", so now have an appointment tomorrow to reserve the property and to discuss optional extras and personalising, as well as signing as much as can be done at this point.

It's a Taylor Wimpey home through Help to Buy, and because the property isn't complete yet (we have a move in date of Nov/Dec) we can't exchange contracts until June.

I'd assumed up until reading tonight that a new build price is the price, and you don't really make offers or negotiate on a new build. But apparently that most definitely isn't the case, and you should try negotiating for money off the list price, or to include optional extras/stamp duty. What are peoples thoughts on this? Anyone gone through a new build purchase recently or have any other kind of experience?

I'm terrible with negotiating as I'm so typically British and overly polite, but with such a big purchase I'm going to force myself to be a bit tougher, just wondered what sort of tips you guys have for things to ask for in terms of reasonable % off or what kind of extras to ask for as part of the purchase price.

I'm extremely nervous all of a sudden as tomorrow I pretty much commit to the biggest purchase of my life, and tomorrow I know my brains going to be going at a million miles per hour so if I can get some advice on here that I can take with me, that would be awesome.

If it helps the value of the home is £330k for a 3 bedroom (darn sarf innit)

Finally, any tips on new build purchases in general? I'm a little worried we're paying for something that isn't finished yet. Ending up with a street light right outside the bedroom window or manhole covers right outside etc.

Thanks guys, really appreciate any help as always
 
Haha I can imagine! I'm prepared, reading some of the stories online of people buying new builds off plan is almost enough to put me off.
 
The theoretical % markup in a newbuild home is phenomenal (i used to work for a "premium" house builder)- consider that when you're thinking it's hard to ask for money off.

Of course if they're selling the things every day without even trying this is totally irrelevant as they have no incentive to give you anything off the property. If you're using something like help to buy this effectively goes against you too. Getting a feel for the popularity of the estate and house type your looking at in advance will help. Believe nothing that comes out of the sales persons mouth

Decide what you think the house is worth and set a margin around that price, also consider the value to you of things like flooring etc, as it will be ofnfar more worth to you than cost tonthe builder. If you reach a price dead end try and get "things" done for the price
 
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I bought off plan a couple of years ago and got all the options, white goods, stamp duty paid by TW. 3 bed semi darn sarf. They asked what it would take to get the sale, so I listed everything I could think of. After the deposit I didn't actually have enough money to buy anything else anyway, so it really was necessary to get the sale.
 
I moved into a new build last month, I did part exchange for my old property so couldn't really negotiate on price though I did get them to add a couple of grand onto the price of my own. You might have more luck paying the asking price but asking for free incentives such as flooring or turfing. Make sure you know, and budget for things that aren't included in the price - like flooring, wardrobes etc.

I gotta say my purchase Could have gone smoother - their legal dept were useless and then they started threatening to pull out because my solicitors were a bit slow at one point, despite us waiting for three weeks for their side to do something. They wanted me to go with their panel solicitor but I didn't want to - I guess that's the risk you take but otoh speaking to a neighbour who did go with the panel, he's not aware of half the conveyencing issues I am. Having been in a month, yes there are snags - some quite significant but equally it could have been a lot worse. Overall I'm quite happy (as long as they fix the snags).
 
billysielu said:
I bought off plan a couple of years ago and got all the options, white goods, stamp duty paid by TW. 3 bed semi darn sarf. They asked what it would take to get the sale, so I listed everything I could think of. After the deposit I didn't actually have enough money to buy anything else anyway, so it really was necessary to get the sale.
Click to expand...

Great western park by any chance?

scorza said:
Having been in a month, yes there are snags - some quite significant but equally it could have been a lot worse. Overall I'm quite happy (as long as they fix the snags).
Click to expand...

How have you found getting stuff sorted?
 
Well hello neighbour! I may send you a trust if that's ok?

And I'll take a look at the Facebook group, thanks
 
Depends on demand - they did a load of new builds in my area and they were selling fast (no movement on price).
 
Yeah these have sold quite quickly, although not ridiculously quickly which makes me feel that they'll probably just tell us to jog on. Price wise I'm fine with if I'm honest, even knowing that their will be a markup given it's a new build.

But if I can get any options or stamp duty thrown in, then I'd be well chuffed :)
 
Never be afraid to ask, tis almost always worth pushing for more for yourself - whether it is your salary or a large purchase just ask for more, push for a better deal - the person you're dealing with is likely quite used to having people ask so it isn't a drama for them.
 
Taylor Wimpy (and Barratts and therefore David Wilson) report profits in June and December. These are their busiest months, this info may be useful to you in regards to final fittings such as flooring.
On the plus side, these months are usually good for getting bigger discounts. Negotiate like you would a pre-owned property.
If it's Didcot then there is a lot of building in various areas (I'm from there and go back every few months) so play the different developers off against each other.
 
We did a part ex and negotiated the following

Asking price was 230k (5 bed detached, not down south)

30k off asking
All stamp and legals
Carpets and curtains
Full landscaped gardens

Pushed them for all fitted wardrobes but couldn't manage it

We had an issue with the garage after we moved in and managed to get the builder to pay us 10k. We were happy as the garage is basically a junk room.

Lived here for 10 years and not had any issues with the house itself.
 
Make sure you get everything thrown in you want in terms of finish including turfed garden, carpets etc as these cost them less than they are worth to you, if that makes sense, so easier to negotiate than cash discount.

Obviously the headline price will be overinflated too so you should be looking for at least a 10% discount unless it happens to be a particularly popular development.
 
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