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Original poster

New Build Negotiation

13 replies

MyDucksArentInARow · 04/08/2020 08:15

I'm looking to reserve a plot on a development. It's perfect, and I can take advantage of HTB and no stamp duty to fly up the ladder. It's a popular site so I don't think there'll be much wriggle room. I'd love to hear of other people's experiences, particularly with Bovis in the South.

We're thinking of putting our first offer in with the following:
5% off list price
They pay our estate agent and legal fees
Turf
Flooring
Upgraded worktops (Quartz)

The spec of the house is quite high so things like white goods are already included and "upgraded" tiles. Although I will ask if there is a tier above available to negotiate with. Do you think I am barmy and will lose the plot to someone else on a very competitive development with my very specific time scale ?(only 2 plots for the house type in the time frame)

OP posts:
JoJoSM2 · 04/08/2020 08:20

You can always try. As with any house, if it’s a bit less popular and taking time to sell you might be able to get a great deal. If it’s desirable, then you’ll be lucky to get it.

NotSuchASmugMarriedNow1 · 04/08/2020 08:21

Can't hurt to ask

thereinmadnesslies · 04/08/2020 08:25

We got a similar package but in a period where they were struggling to sell (Christmas 2018, when Brexit depressed the market). They didn’t want to reduce the price of the house because it then sets a precedent for other buyers but they did pay the stamp duty and increased the offer for our house part-ex.
Just be aware that if they pay your legal fees they will expect you to use their appointed conveyancer. We declined this because we spoke to other house owners on the estate and their conveyancer was useless and just waved through the paperwork and didn’t pick up some fairly important issues.

Original poster
MyDucksArentInARow · 04/08/2020 08:46

Thanks, I'm not sure we would get much of list price, but 5% is a healthy chunk and we have run the numbers against full price, so hoping starting with 5% and drop down to 10-15k, and even convert some of that to dealer contribution if they want to keep list price higher. We're in the mid stages so no end-of-development incentives for them to price drop.

I would love to part -ex but HTB means we can't, hence using their move with us process as that will mean we can hold the plot. We're getting back their decision on that this week as they had our house valued last week. I'm expecting to negotiate when they come back with a decision if they'll consider the easy move for our current property.

The plot also backs onto social housing - whilst I have no issue with this (I wouldn't choose the plot if I did!). I'm thinking I can use this to my advantage to put pressure on, and is hopefully buying us time to negotiate too as others may be put off.

OP posts:
OneMoreLight · 04/08/2020 08:51

Usually you do better to get extras included rather than money off the houses in a new build.

My0My · 04/08/2020 08:57

It will depend how much Bovis want your money! They might prefer to wait and get full price from someone else.

notheragain4 · 04/08/2020 09:14

We just went through similar.

  1. it's highly unlikely you'll get money off the list price, they don't like doing this as it impacts the rest of the development, when we discussed this on a house (we didn't buy) they said we could negotiate a discount but they'd take it from stamp duty and other things instead (this was prior to the holiday) no harm asking the question but just to make you aware, especially if the development is selling well, that said there are people who have negotiated the price of course, tends to be easier to do at the end of their financial year when trying to meet quotas.

  2. is the house in the very early stages? The roof was on ours so we were passed upgrade stage sadly so just double check that.

  3. not all developers will pay legal fees, Barratt won't because they say they don't officially recommend solicitors as it is a conflict of interests (they were happy to unofficially recommend some though....) but other developers will.

  4. your lender will have more say over your incentives than the builder! Some lenders are very strict and will limit how many you are allowed, some won't allow certain types like mortgage cash back so the broker and builder need to make it into something else, which brings me to my next point...

  5. just work out how much of a saving you want, explain why and ask if they can do that. With two developers I've worked with it's just about numbers, they don't care what it's assigned to. So with our house flooring, turf and kitchen upgrade were already included as it was passed that stage. We then needed them to pay stamp duty, and in the negotiation were disappointed to find out it was too late for inbuilt wardrobes. So the salesman asked for stamp duty paid and £3000 in mortgage cash back that we'd get back on completion towards wardrobes. It was all agreed. When we went though the mortgage process they had to rename the mortgage cash back to removals costs as that's what nationwide would accept. They're also allowing us to get stamp duty back as mortgage cash back now due to the stamp duty holiday which I thought was pretty generous tbh but it shows that overall we negotiated to a certain price if that makes sense???

Original poster
MyDucksArentInARow · 04/08/2020 09:59

@notheragain4, Thank you! Yes, we'll be looking at net value too. Interesting that you can change the name of things to pass it through lenders ok. I think we're in a good position because we know we could buy it at list price, so we can do everything in incentives. We just want to maximize value for money!

OP posts:
notheragain4 · 04/08/2020 10:04

They can only say no and better off starting high! Good luck, I've started a thread for those of us thinking about and buying new builds, only me there so far lol

New build support chat thread? www.mumsnet.com/Talk/property/3986280-new-build-support-chat-thread

Original poster
MyDucksArentInARow · 04/08/2020 10:08

Thank you @notheragain4

OP posts:
Shadowboy · 04/08/2020 19:09

My best mate sells houses (not bovis) they never reduce the list price - ever. But they will throw in extras and pay solicitors fees etc. They may give you flooring vouchers or gardening vouchers. It also depends on the stage the plot is at. If it’s already into the first fix then you may be limited on kitchen options as they are usually ordered in advance however; they may need to sell so they may offer alternatives

ChocoTrio · 04/08/2020 19:57

My new build development is selling well and they don't offer any incentives, because they don't need to. If yours is popular, then chances are they won't agree to much.

You need to play it safe - secure your plot if it is competitive!

It's a strange time for builders. I know mine has actually made redundancies with their sales team even though they are selling ok.

Southeastmamaof2 · 23/08/2021 14:04

I am wondering OP- how did the negotiations end, what deal did you get?

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