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Original poster

Cheeky offer on new build

33 replies

shazza292022 · 04/08/2022 19:23

So we have sold our house to FTB and we are on the hunt for a new house. We have our eye on a new build but it is quite expensive so we would only be able to offer around 12% under the asking price. Now I would normally just leave it at that however, where I live the housing market has really slowed down, and for this development I have noticed they are offering alot of deals on all plots at the moment, and like they are really pushing for sales. When I say deals I mean like paying your mortgage for half a year deals for example, which I rarely ever see. This makes me think they are keen to sell, especially as some of the plots they had advertised months ago, I have noticed are still available now.

So am I cheeky for putting in my low offer given our circumstance? We have been sold for some time now so paperwork is already well underway, hence the pressure to find somewhere else. I know it's a don't ask don't get sort of situation but I wondered if anyone else has had any experience of this?

OP posts:
EinsteinaGogo · 04/08/2022 19:29

Don't ask, don't get!

What have you got to lose? You're in a good position. You could certainly negotiate.

Is the development complete?

Ontomatopea · 04/08/2022 19:31

You might as well offer if they don't want to take it they wont

LittleOwl153 · 04/08/2022 19:31

Don't ask don't get... especially if the house you are after is close to completion...

denysedenyse · 04/08/2022 19:33

What they said above. You have absolutely nothing to lose by asking

BaileySharp · 04/08/2022 19:33

They have a tendency to not want to reduce the selling price I found (although I've only bought once) but are more willing to throw things in to make the sale

Roselilly36 · 04/08/2022 19:35

Usually new builds charge a premium, not sure how realistic a 12% reduction would be, unless you are prepared to buy a home on less desirable plot. Do some research on the builder, unusual for new homes in the current market not have sold.

Thatiswild · 04/08/2022 19:35

Offer whatever you like, they can only say no. They’ll counter offer if they don’t want to take it. Go for it.

chilliesandspices · 04/08/2022 19:36

My DH worked for a national building firm. He knew to look for end of year dates for building firms as they vary. He walked in 3 days before end of year and did a low ball offer on his flat. They snapped his offer up. Always worth a punt. His firm did a 10% discount for employees and still made a profit so he went in with 12% below asking.

floppybit · 04/08/2022 19:41

@chilliesandspices this is interesting, how would someone find out these dates? Would it be available online or did he know because he was in the business?

TheLette · 04/08/2022 19:44

In my experience new build developers don't negotiate on the price but do agree incentives. I am not sure why, there must be a good reason, particularly because the plot price does sometimes depend on the specific plot. However no harm in asking especially if it doesn't look like it's sold. I'm just saying don't expect them to go for it. Depending on the value could you achieve what you need through incentives (e.g. they pay stamp duty, legal fees etc)?

TwoLeftSocksWithHoles · 04/08/2022 19:46

I don't think it's cheeky, it's just business negotiation. I wouldn't start with an offer I would ask how much they can reduce the price (they may be preferred to go even lower than your 12%) then say you need a 15‰ réduction and negotiate back to 12% if necessary.
If they won't budge, let the salepersons tyres down as you leave, flicking 'Vs'

That's what I'd do.

chilliesandspices · 06/08/2022 11:52

floppybit · 04/08/2022 19:41

@chilliesandspices this is interesting, how would someone find out these dates? Would it be available online or did he know because he was in the business?

He was able to ask colleagues in the new home section of his company but a bit of Googling can get you there. A cursory Google gave me these dates published last year

www.housingtoday.co.uk/story.aspx?storyCode=5115234&preview=1&hash=DCD1D60A98A86CC7112B45D1E8463F7C

sst1234 · 06/08/2022 11:58

How anyone can possibly answer your question without more detail. Well, they could but it would be pointless guessing, not considered advice.

Which area of the country are you in? What’s the asking price? How many plots in total on the development? How many of this type left to sell?

Sunshineboo · 06/08/2022 12:03

If it is built or close to completion and it hasn't sold then I think it is very worth an offer. however as a warning it will be on sold for a reason. I say this is someone who did this and got £17,000 off an already discounted £190,000 house quite a number of years ago. they had already dropped 15k the housing market was stable - ok but not terrible. Our plot had not sold because it was in a terrible place. People are buying houses and waiting for them to be built on better plots Despite this being fully carpeted and with a landscaped garden. other similar houses were selling for 205k plus we bought ours for 173k. i should have known!

Issues with Our House were primarily a north facing back garden, overlooked by houses from all angles, and on the corner of a side road where there was very limited parking for the houses up there. they parked right in front of our house blocking the drive. the garden had lovely walls all round rather than fences - looked beaut but made it darker. the lack of light, position at the bottom of a hill and shite drainage meant that it was like a swamp.

the house was dark and even though house prices rose, when we sold after 10 years we lost money. but i was glad to let it go and start afresh.

I am the only person I know to have ever lost money in property!

Thestoppedfan · 06/08/2022 12:13

I would definitely speak with them, when we bought ours they couldn’t reduce the price but they could give us money towards the deposit which did the same thing. They gave us £15k.

tttigress · 06/08/2022 12:16

New builds are often overpriced.

As stated if the units aren't shifting and the developer can see a downward trend in the market, they may accept.

SzechuanSally · 06/08/2022 12:19

Is the development nearly finished and these are the last few plots? If so, they may accept a lower offer. If not and still houses to build and sell they probably won't as they have to keep an eye on selling the future houses.

We bought ours on a development with a section still to be built. They wouldn't budge on price but we got tons of incentives Inc a deposit contribution and an injection of cash to the value of the stamp duty, as it was during the holiday.

Extras a big thing to negotiate as bear in mind, most new builds come with no turf, basic flooring/carpet and fixtures and fittings. To make it worthwhile you need the cash to purchase the extras - elevates the house to a much higher standard.

maddening · 06/08/2022 12:19

I did and got a reduced price, it was one of the last 3, the estate was near full build completion so they wanted off. It was the show house too.

wallpoppy · 06/08/2022 12:25

Jesus christ it's not like you're trying to take advantage of some poor desperate old dear who built her beloved house by hand and needs the money to pay for her husband's new kidney. It's a commercial operation and if they think that your offer is viable, they'll take it, if they don't, they won't. yes, it really is that simple.

TwoLeftSocksWithHoles · 06/08/2022 12:32

tttigress · 06/08/2022 12:16

New builds are often overpriced.

As stated if the units aren't shifting and the developer can see a downward trend in the market, they may accept.

I would say always

SummerSazz · 06/08/2022 12:36

I got a deal on a new build about 10% under asking but it was one that had previously sold and fallen through and it was the last weekend of the show office being open on the development.

Agree that if you don't ask you don't get!

nokidshere · 06/08/2022 12:36

Why would you not offer what you want to? No one is under obligation to say yes unless they want to.

Our new build (20yrs ago) was on the market off plan for 129,950 we offered 108k which they accepted and we got to choose the finish, and they paid our moving costs.

If you don't ask you won't know.

TheMullerLightOwl · 06/08/2022 12:37

Don't ask, don't get.

However I think you would be unlikely to get 12% off the asking price if there are still a number of units to be sold. This is because mortgage valuation surveys are based on sold prices nearby. As soon as one house sells below asking price, this then affects the valuation of all units in a development.
If it's the last house they probably wouldn't care, but if they have 10 more to sell then they would be less likely to accept the lower price.

AStar98 · 06/08/2022 13:05

You'll find that most developers won't entertain an offer under asking price, even in the current climate.
In general most will insist on the asking price and throw a package of incentives to persuade you. I believe the value of incentives are based on individual plots. So you might find that the 6 months of mortgage payments only apply to a small number of the least desirable plots.
I've been through the process 3 times with developers - ended up paying under asking price for first new build because the surveyor disagreed with the valuation back in 2010, my 2nd new build was standing stock and were accepting offers only at this point so maybe if you're looking at something already constructed?
The final new build we didn't proceed on in the end but was fairly recently, all plots had been sold offplan and you really don't have any wiggle room in that scenario.

johnd2 · 06/08/2022 13:45

One reason they don't accept offers is they want to make sure you don't set a precedent. If they give 5% to the first person then they end up giving discounts to everyone.