New build prices

[takingstock]

I'm hoping to buy a new build with the help to buy scheme. I've been referred by the house builder to an IFA who quoted figures based on the full asking price and this is too much for me.

Can anyone help me to understand what a good offer looks like on a new build?. I don't want to lose the house but I'm very inexperienced when it comes to negotiating and I don't know whether to go in at what I can afford (5% below) or start less than that.

Houses in the same estate went for much less 6 months ago and the one I'm interested in has been on right move since Feb.

I've just offered and new build, managed to get carpets, ceramic tiles, upgraded kitchen and appliances and a few other extras included with 5% off asking price and a hefty sum toward my stamp duty

So it doesn't hurt to make an offer and negotiate, especially if you can work to,their time scales for moving in etc

Offered ON A new build.

I know that financial lending has changed enormously in the last 7 years, but have you read this thread about buying a new build?

That's really great Honey. Can I ask how you started your negotiating? Did you lay all your terms out on the table, right at the beginning?

We've not used help to buy, as we negotiated part ex.

I was quite straight forward about what I wanted "included" within my budget, and that I didn't want any surprises afterward.

After that is was simply a case of sticking to my guns until they offered something back that was satisfactory and affordable.

Help to buy isn't like the previous private equity schemes. You'll have five years interest free, then nominal interest and 25 years if needs be to clear the loan. As long as you budget how you're going to repay that and the mortgage, and think of the purchase in terms of monthly outgoings it will help you focus.

If you're thinking in terms of 150'000 say, it's easy for a seller to tempt you to another 10k. If you think of it as potentially another £100 out you bank account each month it's easier to go "Nope"

Right I'll need to work on my budget!

How did you manage to get a deal on your stamp duty as well? Did they offer it so you could come within your budget or did you ask for it?

Basically, they aren't stupid, they know buyers or savvy enough now to check the Land registry sold prices on Zoopla and Rightmove.

So their main goal is to show a good sold price so they don't devalue future properties as people try to bargain from the last sold price.

So you can get better results by looking for discounts they can hide. So they pay your stamp duty and still get to show a good sold price. They agree to decent flooring or other "extras" which again, won't affect future sales.

Obviously, it's only worth it if the extras are things you'll need and would cost moving in.

Speak to your lender though, not all will accomadate them paying the stamp duty to your soliciter.

So you don't have to settle at just 5% off, you can push for other benefits too

We bought a new build a year ago with HTB (we've in the process of moving again but that's another story, nothing wrong with the house). Like honeydragon says house builders are generally keen to make sure people don't see the list prices being negotiated so as not to de-value the rest of the development. With that said we were able to negotiate that they paid the stamp duty and some extra tiling etc. We are in the South East though and the development we bought in was over subscribed (if that term applies to houses) so you may have more luck. You can only ask!

Well. I'm very excited. Have had my offer accepted. 7% below the asking price :)

Nothing added in but am really pleased to have got such a good deal.

Thank you for your advice. It really helped.

?ovely

We didn't do much, other than give you the confidence to get what what you wanted. Well done and congratulations