Author Topic: Any tips for negotiating a price on a new build property?  (Read 6424 times)

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geek84

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Any tips for negotiating a price on a new build property?
« on: October 23, 2013, 12:17:43 pm »
Good Morning Folks

My wife and I are looking to buy a 3 bedroom new build property.  The developers have priced it at £120,000.  However, I often hear that you can actually get large discounts from the builders on new build property. 

Could someone be kind enough of to tell me what points I should raise in order to get any discount?

Thanks in advance for your responses.


Philofacts

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Re: Any tips for negotiating a price on a new build property?
« Reply #1 on: October 24, 2013, 07:48:05 am »
Due to 'Help to Buy', prices for new homes have increased at a faster rate than the general market up on average 7% over the last 12 months.
House builders don’t need to do deals, unless it is near their end of year figures time and buyers should be wary of buying poor quality new homes that are rushed to be included in the figures.

You are unlikely to be able to negotiate a price discount or stamp duty paid deal (no stamp duty is payable on a £120,000 home).
However, most sales advisors do have "negotiables" so you may be able to get around £1,500 - £3,000 as a discount, or "free" options (like turf or carpets), or a mixture of both.
You should also be aware that any discounts or "deals" applied only to specific plots are becasue these plots are not selling for one reason or another. Anyone buying one of these may have trouble selling in the future.

Other buyers should note that if the price is just over the stamp duty threshold (more than £250,000) then walk away as for example, the stamp duty on a home costing £255,000 is £5,150 more than a home costing £250,000.

Finally, everyone buying a new home should first throughly research the house builder, their reputation, quality and after sales care. 
Before handing over the balance of the money at legal comapletion, they should also have their new home professionally inspected and snagged.

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geek84

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Re: Any tips for negotiating a price on a new build property?
« Reply #2 on: October 25, 2013, 02:35:53 pm »
Thanks Philofacts.
Can anyone else be kind enough to offer any further advice?

Philofacts

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Re: Any tips for negotiating a price on a new build property?
« Reply #3 on: October 25, 2013, 02:45:42 pm »
I am at a loss to know what "further advice" you are seeking?
Builders will only give "discounts" to buyers who are most likely to actually complete.
That is those that are chain-free ie with no home to sell, that have cash or a mortgage agreed in principal and can exchange contracts in 28 days (that is have the 10% deposit required).

Tick all those boxes and you may get something off the £120,000.
All you can do is make an offer and walk away when it is turned down!
A three-bedroom new home for £120,000 is a bargain in most of the UK anyway!
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