# How to negotiate on a new build property?



## Pandy

Hi guys,

Myself and my partner are very close to paying a reservation fee on a plot that we want, but I know that when that time comes, we will need to bargain hard to get the best possible deal. 

Has anyone got any tips on how we can go about negotiating the price and the extra like flooring, kitchen style etc? As we are buying off plan so get a say in everything really.

Thanks in advance
Andy


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## Dangerroush

I think you have to see what other builders are offering in the area, remember the housing market is slow, so it's a buyers market, go in with an open mind, but with clear ideas what you want, but don't be unrealistic. In the negotiation, you want to ensure that you get the upper hand first, so win something small, then Move onwards with your demands, make the next one you talk about a bit unrealistic, so they can say no, then go back with what you really see as your most important item, and stick with it, tell them if they agree to it ou will sign up there and then, if they say they have to talk to someone senior, it normaly means your going to get your request.....GOod luck


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## Pandy

Dangerroush said:


> I think you have to see what other builders are offering in the area, remember the housing market is slow, so it's a buyers market, go in with an open mind, but with clear ideas what you want, but don't be unrealistic. In the negotiation, you want to ensure that you get the upper hand first, so win something small, then Move onwards with your demands, make the next one you talk about a bit unrealistic, so they can say no, then go back with what you really see as your most important item, and stick with it, tell them if they agree to it ou will sign up there and then, if they say they have to talk to someone senior, it normaly means your going to get your request.....GOod luck


Thanks for the reply 

They have the upper hand in that fact that there aren't any other developers around here that we can barter against, but we are first time buyers, have our mortgage in principle and are buying off plan so that puts us in a strong position in my eyes. We have placed our names against the plot to let them know that we are serious and will be able to reserve from this Wednesday coming.

The main thing we would like in small terms is the flooring throughout the house, and electricity to the garage would be a bonus if we could push for that.

The big one is that we don't want to pay the asking price for it - I just don't know where to start with that?

It is on paper at £230k and we have a mortgage in principle for £190k (plus £10k deposit - I'm not sure why the advisor went so low as we knew they would be £210-225k depending on the plot) so we are £30k short on that (although the bank 'would' lend us up to £290k). Could we use the mortgage in principle as a barter or is that not a strong enough piece of info?


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## Dangerroush

Hi, I don't think the mortgage in principle is a bargaining chip...but, you have no chain, your willing to sign on the dotted line, tell them straight, you like the property, but you only have max 200k, what can they do, after all, you have no chain, your a real prospect for them. They need to sell the property's so they can move onto the next development. Is the property valued high compared to existing houses of a similar size in the area, if so your in a strong position, just depends how much they want to sell. Good luck


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## 182_Blue

It depends on the area and who wants what you want, we looked at a development in a popular area about a year ago and there wasn't any room for bargaining, the price you saw was the price you pay, they was so popular that you had to put your name on a list in case anyone dropped out !, everything had sold long before being built !


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## Coops

It is definately a buyers market at the minute, we moved into our 2nd new build last year. The development is relatively small (80 houses), our house had been finished 6 months prior and there are still properties left to sell now. They just aren't selling them.

We got a very very good part exchange deal inc carpets, turf, legal fees paid and stamp duty paid amongst other things. I was pretty straight with them from the start and clearly outlined what we wanted. Eventually after some offers they came back to me after I walked away.

Guess it depends how popular the development is going to be - being a first time buyer you certainly have that on your side - no chain etc. Yes you will have a choice on fittings but just make sure that you budget for everything such as carpet, turf and other such things.


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## B17BLG

What other incentives are they giving you?

Any first time buyer schemes etc?


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## petemattw

Go in and see what they say, I missed out on a property a little while ago which was a new build, I thought they'd never accept my offer, I was going to go in at £275k on a property being marketed at £325k, I later found out it sold for £265k. If i'd been cheeky enough to go for it....


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## Pandy

I have read a lot about putting in an offer and walking away, leaving the ball in there court, but that really isn't an option for us - we have been waiting for this part of the development since last October and we really don't want to walk away and risk losing it, so I guess we are going to have to compromise somewhere along the line.

I guess a cheeky offer can't go amiss, or we barter for as many things included as possible - thanks for the ideas Coops.

We are using the New Buy scheme, so a 95% mortgage in essence.


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## PaulN

Whether you make a lower offer or not your mortgage is way off. Not only haven't you got enough for the house, but you haven't got money for solicitors fees and Stump duty which on its on is about 4-5k. 

You know what you can afford but I guess the repayments on £190-200k would be £800 ish.


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## Pandy

I used 10k as reference to 5% of the 200k total house price. We have enough for the deposit on 230k and will have the fees saved in 2 months. It won't be built until Sept-Dec anyway.

I spoke to the financial advisor today and he ran some figures through based on 230k and it is affordable to us.

We are saving hard as we have our wedding next April too :doublesho


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## Dixondmn

The best advice i can give, is be prepared to walk away. Tell them your terms and you will sign on the line the very second they agree to it. If not walk away and look elswhere.

The only trouble with this, is holding your nerve as you're no doubt in love with the property.... just dont let them know how much..


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## Beancounter

As had been said above, it really does depend on the area and how much competition there is in the surrounding areas. Know you budget for ALL expenses and don't go above it. It's easy to get drawn into the 'I must have that house' when you look around.

I've bought 2 new builds over the last 20 years and both were in prime locations and all I managed to negotiate was carpets on top of their price.

The builders weren't interested in discounting, as there was a queue of people waiting for the houses. Only reason I got the carpets is because I was referred by a friend who also bought on the same development. Actually the houses in phase 2 (10 houses) went up for £25k more than we paid and phase 3 (another 10 houses) for £50k more, so this clearly backed up their thinking as they all sold 'off plan'.

My advice for buying off plan is to really study the plans and make sure you are happy with how close neighbours are and if they overlook you etc. Try and find another development by the builder too, so you can get an idea of how things will look when the bricks are layed. Those idealic plans in show offices often aren't how the final site will look.


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## Estoril-5

would the mortgage lender give you a mortgage on something that hasnt been built?

how do they value it if its not built yet?


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## bigslippy

Estoril-5 said:


> would the mortgage lender give you a mortgage on something that hasnt been built?
> 
> how do they value it if its not built yet?


A surveyor will be instructed to look at the location and plans for the build to assess valuation on completion:thumb:


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## Pandy

The development is 90% built and we know how the house will look and where it sits. The plot we have chosen is perfect for us and one of the main selling points is that it isn't overlooked which is great. We have viewed the same property on an earlier phase of the build so know the layout etc.

In an ideal solution we would offer what we want and walk away, hopefully we can do that 

The mortgage is specific to the New Buy scheme but can be transferred between sites if we wanted to.


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## Estoril-5

im in birmingham, where is the plot youre looking at


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## Craighightower

Could it be that the builder needs you to reserve to build it? Depends on local demand but if it is weak they might need you as much as you need them


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## Pandy

Well we went in today and they haven't had confirmation for the plots so its another week waiting.

We are one of three couples to have put there names next to plots before they have been released - thats on 16 plots I think.

Its in Great Barr, Estoril.


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## nichol4s

Just go in with the price you'd like to pay, I bought a new build 4 years ago it was up for £210k been stood empty 18months offered £160k got told no to low so we walked away, 3 weeks later they rang with a counter offer of £190k to which I said no my new offer is £140k again they said no week later another phone call would you move in at £160 with all fees paid, removals, carpets and a contribution to your deposit? We accepted. 
But what I'm saying is start low you can always go up :thumb:


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## Beancounter

Brayce said:


> .................. *Ask any real estate agency in your area.Hope they will help you in finding some good place*.Because they already know all about your area.And you give you better suggestion rather than ask it here.


That's a bold statement and not something I would agree with
Most of the agents in my local area are fresh faced kids who wouldn't know a decent property if it hit them in the chops!
With the invention of Right Move, Zoopla, net house prices etc, they are a dying breed as anyone with an ounce of common sense can piece together information about prices trends etc from just doing a little homework. In my opinion, the agent is more use on the sale side rather than the buy side.:thumb:


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## petemattw

is it the development next to the motorway on the Queslett Road?


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## Pandy

Yeah that's the one :thumb:

Been and reserved it today so come October we should be moving into our very own home


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## John-R-

As for getting extra power to the garage etc speak directly to the sparky on-site, the developer will "bump" up the price a little probably, the site sparky should be willing to do you a deal for cash  we got extra alarm keypads/wall light points etc etc for pretty much nowt but the developer would have been charging £25 here & there for these type of add-ons

John


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## petemattw

Pandy said:


> Yeah that's the one :thumb:
> 
> Been and reserved it today so come October we should be moving into our very own home


Birmingham meet in October at your place then!!!!


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## Pandy

John-R- said:


> As for getting extra power to the garage etc speak directly to the sparky on-site, the developer will "bump" up the price a little probably, the site sparky should be willing to do you a deal for cash  we got extra alarm keypads/wall light points etc etc for pretty much nowt but the developer would have been charging £25 here & there for these type of add-ons
> 
> John


Thanks John. The garage comes with power but we do need to look into an alarm system as I would prefer it to be installed before the walls are plastered - bet they will charge a fortune for that!!

Luckily the house is full of TV and phone points so we don't need any extras there which has saved us a few pennies.



petemattw said:


> Birmingham meet in October at your place then!!!!


Lol be alright if everyone parks on the road!

We are going up there later as they have started the foundations now so want to get pictures of the various build stages  Very exciting!!


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## Pinky

Find an alarm company and get costs etc then go to the builder and ask if this company can come and do the wiring for the alarm when the electricians are in and that will save you as if you ask the builder to get an alarm fitted they will no doubt just get the company to do it and charge you a fee for contacting them .
our builder fitted an alarm for our neighbours when building the hoose and charged them £400 extra just for a phone call ,I just contacted the alarm company then called the builders and told them the alarm was being fitted , builder wasn't happy but so what they were getting our money and it was what we wanted .


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## Pinky

Any news on this did you manage to arrange for an alarm fitter to come and do it when the electricians are there ?


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