# How much should i expect off a new build?



## BENJY (Oct 26, 2005)

Hey Folks

Im currently very tempted to jump on the property ladder and buy my first house well appartment. Now currently around my area there are a shed load of new developments up and still in the process of going up so i will be looking to buy a new build. How much should i expect them to knock off the asking price? Would placing a bid of 10grand under the asking price be too cheeky? The development i am looking at inparticular has a few appartments already built but unsold so they must be looking to do a deal.

May be a stupid question but the whole propert market is new to me.

Also are these shared equity schemes worthwhile? 
I dont need to have one but the extra cash it would save me could go towards a nice home cinema system

Thanks


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## Needs a clean (May 24, 2008)

If the market down there is anything like the market in my area, then you have no chance of getting money off. The property up here goes on the market on a "offers over" basis. 

Why would you think that you would get 10 grand off the price? Is that the way it works down there?


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## BENJY (Oct 26, 2005)

WOW offers over!

Well i dont expect to get 10grand off i would like 10 grand off but its probably not possible. I would of thought that due to the number of new builds going up in my area and the number of them sitting empty there must be some negotiation in price.

And i also would of thought that being in the position to move in as soon as possible would of helped


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## chillly (Jun 25, 2009)

Ask away you never know. 10 t0 15% is always in the running on new builds and in this climate as they need the dosh to carry on building:thumb:


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## Needs a clean (May 24, 2008)

chillly said:


> Ask away you never know. 10 t0 15% is always in the running on new builds and in this climate as they need the dosh to carry on building:thumb:


Not on the new build my mate just bought. Fixed price. No offers. But, as i say, that is in Scotland, so it may well be a different kettle of fish down there. No harm in going in with a cheeky offer if there are a few sitting.


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## ferret303 (Sep 6, 2007)

I got a 10 grand reduction on my new build i did ask for 15k off but it was a no on that one.


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## The Cueball (Feb 8, 2007)

Needs a clean said:


> If the market down there is anything like the market in my area, then you have no chance of getting money off. The property up here goes on the market on a "offers over" basis.
> 
> Why would you think that you would get 10 grand off the price? Is that the way it works down there?


The 'offers over' system is only in Scotland IIRC...

Elsewhere the property is offered and usually goes for below the asking price, sometimes at the full price...

Not that I watch those stupid property shows.... :tumbleweed:

To the OP, go in with your cheeky offer, all they can do is say no...

Good luck!

:thumb:


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## Stumper (Apr 5, 2009)

When we looked at a new build, it was up for £185000 originally and the developers reduced it to £170000. We put in an offer of £162000 and they accepted it!

The falling down point was the deposit. Pretty much everywhere will demand a minimum 25% deposit on new builds and we only had 15%.


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## Gruffs (Dec 10, 2007)

Also,

Do your homework. New builds are vastly overpriced. 

Look at a 3-bed from 15-20 years ago and look at the size of the land and house you will get for the money. Also, the quality of the workmanship is ropey at time with wonky windows, poorly fitted kitchens and floors. Some of the plastering in a £400K showhome i saw beggared belief.

Go round with a fine tooth comb and beat them down hard.

Shared ownership is primarily for Key Workers but it's not as rosey as it appears either. Have a good read up on that too before you get stuck in a Govt. money trap.

As said, deposit size is the problem for most atm. 

New builds look attractive to start with until the development is finished and everyone who lives there has two (or more) cars and only 1 space. I would advise you to go for a property built about 15 years ago if you can. 

Read up well and try to get the best deal you can. Kitchen for Free, fittings, carpets deposit, stamp duty. All are bargaining points.


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## rusty82 (Aug 13, 2008)

property in the area of my woods are approximetly going for 91% of their asking price if thats anything to go by.

no harm in asking, after all, if you dont ask you dont get!


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## APK (Oct 6, 2008)

The problem is that for the last few years developers have built thousands of flats/appartments that nobody wants anymore, as such they have tumbled in value, as a result lenders are veru cautious with most lenders insisting on 25-30% deposit on new build flats, as flats are aimed at ftb's on the whole, few ftb's have this sort of deposit as such they cannot sell, which drives the price down, which makes lenders even more cautious, which means they restrict their lending, which reduces demand, which drives the price down, which..............you get the idea, so get your mortgage agreeed in principle and go in very hard on the basis you could complete before their accounting year end.


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## BENJY (Oct 26, 2005)

Gruffs said:


> Also,
> 
> Do your homework. New builds are vastly overpriced.
> 
> ...


Hi mate thanks for the advice I was looking at getting a older house but im not really keen on it at the moment for the main reason being you buy it then need to spend x amount of money bringing it up to scratch where as in a new build its all new plus you get a certain amount of leway if anything should go wrong with it miss fitted windows etc the builder should get it sorted for me. 
Plus im living in it alone so my plan is to buy move in obviously then when i meet someone i want to settle down with in a few years buy a proper house and then look to rent the appartment. If i dont get the 10g off i would like then i would look into the extras side of things carpets fitting etc.



APK said:


> The problem is that for the last few years developers have built thousands of flats/appartments that nobody wants anymore, as such they have tumbled in value, as a result lenders are veru cautious with most lenders insisting on 25-30% deposit on new build flats, as flats are aimed at ftb's on the whole, few ftb's have this sort of deposit as such they cannot sell, which drives the price down, which makes lenders even more cautious, which means they restrict their lending, which reduces demand, which drives the price down, which..............you get the idea, so get your mortgage agreeed in principle and go in very hard on the basis you could complete before their accounting year end.


The deposit really isnt a issue for me thankgod as ive had a good job for the past few years and been able to put a fair bit aside so i should be able to get a 25% deposit for the appartment im looking at no problem and ive arranged to go see some peeps about getting a mortgage sorted tomorrow so i will find out how that goes before putting my offer in with the intention of doing what you just said ''Ive got a mortgage arranged for this much xxxxx i can go asap would you like my buisness''. Then see what they have to say.

Thanks for the help guys.


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## JCW85 (Oct 29, 2009)

Hi BENJY

I don't see what harm it would do putting a cheeky offer in but be weary if the Apartment you like isn't completed as they could use a lesser specification unless you agree it as part of the Contract.

Alot of the National House Builders are getting on the Affordable (Social) Housing bandwagon so they are finding alternative sources of income and won't give away their existing stock but there is a deal to be done!

As for shared equity (now called HomeBuy) this is basically a leasehold in disguise unless the staircasing hasn't been restricted which most are and therfore you will not own the freehold title.

I get involved with alot of AH schemes and typically the floor plans are larger than a private builder as there alot of standards which have to be complied with (I won't bore you with the details)

Hope this has been of some help to you.

Chris


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## petemattw (Nov 3, 2008)

How much to ask off is relative to the initial price. I recently looked a buying a new build with a mate to rent out, it started off at nearly £550k and eventually sold (not to me) for less than £470k, which is a signigicant difference. The company needed the cash releasing and making a loss was better than going under. So try for about 15 percent to start with (assuming that's over the 10k you want) and negotiate down. If you went in at £10k below and they said yes straight away you'd be wondering what you could have got it for!

Shared equity, if you can afford to not do it don't do it. You'll be in bed with two partners instead of one, you'll have a share, the bank will own it and so will the government and then you not only have to pay mortgage but also rent. ALSO, on some of the schemes when you sell it, you have to sell under strict criteria and the government can claim a greater percentage back from you leaving you in a worse position in the future. As a "key worker" i've looked at this years ago and it wasn't an attractive option!

Best of luck with whatever you decide - just remember to get a ground floor so you can run water for detailing!


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## 738ALR (Sep 8, 2009)

Supply / Demand - it wil depend completely on te local market.


As has already been suggested work on 10-15% reduction, or more if the housing market permits.

If you're struggling for a deposit, ask to do a deal where the house price stays the same, but the developer contributes the deposit for the mortgage.

Andy


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## VixMix (May 8, 2008)

Push on the extras aswell, my friend got a shed load on her newbuild. There was a significant discount on the price because the original buyer pulled out and the kitchen and bathroom had already been fitted so she never got to pick her kitchen. 

The downside to newbuilds is the amount you have to pay to make it practical, silly things like getting an ariel fitted and fencing and landscaping the garden - it sounds frivolous but my friend's garden was just soil, no paths or anything. There was no fencing and her neighbour didn't want to pay for it all by themselves so left it and she had their dog roaming about and fouling her garden!

Don't write off established houses. A nearly newbuild is likely to have everything you want and are also open to reduced offers. Bargains can be had!


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## Roswell (Aug 11, 2008)

Historicaly a new appartment costs to much they tend to fall in value unlike a house, older houses also have a bit of a premium to them many are more expensive than a new one thats the only time you will enjoy getting a new hosue is its most likely going up in value not down, Some new build finishes are hiddeouse at best very cheap materials used for skirting etc plastering or lack of and wonky floors seem to be oerder of the generation of stack them high and sell them high. I have yet to see a new build with coving which is something id expect as a minimum in a new build. 

With old houses you take into account repairs with your offer eg it needs a new heating system (A days work) - £2000 from the asking price, new windows take about a day cost about £2500 minus - £2500 from asking price, as long as its got good structual walls with no damp / cracks / bowing and a roof to keep you dry the rest is pretty cosmetic.


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## Vyker (Sep 17, 2008)

I got £5k off my overpriced new build, and managed to get flooring thrown in. 

But that's not to say I got a good deal.

You will pay over market value for new builds, but you have to remember that to get a mortgage, you need a valuation done by the bank, and they wont play ball if its too over priced or they see you are getting ripped off, but also remember that they will over value it as well! catch 22


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## DE 1981 (Aug 17, 2007)

We looked at a new build just up the road from us a good while ago, it was on for £275k at the time, i got a call last week from the sales rep offering the exact same spec'd house for £235k. Im pretty sure if i went for it id get it cheaper than that but finding a buyer for ours is unlikely in the current market plus i doubt we would get back any of the £25k we spent on our fancy new kitchen and bathroom.

Gav


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## jedi-knight83 (Aug 11, 2006)

Guy i know just missed out on a few new build houses as they went within hours of coming on the market for the full asking price... another went for £100k over list.

Property market is on the way back up it seems in certain parts of the country.


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## -ROM- (Feb 23, 2007)

jedi-knight83 said:


> Guy i know just missed out on a few new build houses as they went within hours of coming on the market for the full asking price... another went for £100k over list.
> 
> Property market is on the way back up it seems in certain parts of the country.


Yeah the problem is many new build sites downed tools and stopped construction whilst we were in the worst of the recession. So any new builds are now are being snapped up due to the shortage in the last 12 months.


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## Tom_O (Jul 1, 2008)

Obviously it depends on who made the place, and the price should reflect quality, but many new builds I've seen just have the feel of an american car. There are loads of them, and everything looks kinda right and as it should, but the quality is sub-standard, and many won't stand the test of time.


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