Can you help me negotiate on a new build?

[lemonmeringueno3]

I'm feeling a bit deflated because I've spent the past year building up to making an offer on a new build home in my town but, after an appointment with them yesterday, I don't think it's going to happen.

XH and I separated last year and I stayed in the house until it was sold. Throughout this, I had my eye on a David Wilson development and a style costing £460k.

I sold my house and moved in with family to make myself a good prospect, have £400k cash, a solicitor lined up, a secure public sector job and a mortgage in principle.

They haven't sold anything at all since October and the plot I like went on in August.

Over the past year, with prices in our area falling or stagnating, they increased the price to £500k but offered a 'deposit contribution' of £40k. So really, no discount or incentives at all.

I went along yesterday and was told that there is no flexibility at all - £460k is it.

On principle I'm not paying it and will keep looking elsewhere. I don't want to overpay in this market. But before I give up completely, have I done something wrong or missed something? I've bought new in the past and put in an offer that was accepted after negotiation. The salesperson just didn't do any selling at all it was like they didn't care if it got sold.

Has anyone successfully negotiated or can tell me how to do it? I know it sounds pathetic but xh always did that sort of thing and I must say was taken more seriously than I was yesterday.

Unlike a personal seller who wants to move to a new home or release inheritance they probably have enough of a cash buffer to wait this out and hope that prices rise this year (foolish imo)
You did everything right but they're not a normal player in the game.

I would consider making a formal offer if you didn't actually do that or start looking at other options. There's often a lot of snagging issues with new builds anyway. Is there anything a little older but not OLD around you like?

They might not have any flexibility and need to be seen to get that money in for the property so could it be an option to get some extras thrown in for that? Usually there's upgrades to buy, flooring etc which could add to a few £k to make it more worth it? Help with moving costs, legal fees etc?

Thank you for your reply.

Yes I think I will have to look at existing housing stock now. I am just frightened that I could move in and find all sorts of things wrong with it. Again, xh would have a go at fixing things or know how to get them sorted. I suppose I will just have to learn! The divorce process has been so brutal that the thought of a nice new build was very appealing.

I think I felt a bit insulted tbh. I know it's not personal but she was so dismissive it was almost unbelievable.

I'm not any expert in new property, but the knowledge I do have is that the baseline price is rarely negotiable unless getting into distress like sale. I assume this is because of some sales indicator on price they have as a performance metric..presumably they don't want data being published indicating falling new house prices...and also because it is public data.

Wha5 I know they are usually a lot more flexible on is extras and contributions to costs etc which of course don't get published by the land registry. As others have said, focus on that if you can make the figures work

She did list a lot of things that were included, but they've always been included iyswim.

She said the house is completely finished so they can't offer any upgrades at all.

XH would have been quite rude and slapped a 'take it or leave it' offer on the table that, from experience, usually worked.

I was my usual nice, friendly self and think I looked like a mug.

Yes you're right they don't do discounts but 'contributions' so that the sale prices achieved look artificially high. I wonder how that affects national house price statistics, thousands of new builds achieving 'full price' when they didn't really.

OP, mortgage rates are falling and those developers with finished houses seem to be holding their prices. When the mortgage rates went sky-high last year, a lot of developers paused building, meaning there are fewer finished homes, so they probably believe they can command asking price.

You didn't look like a mug you walked away so you smashed it!! I agree with others they're often more willing to upgrade things like nicer worktops etc or new carpets. A friend even got the garden done properly and landscaped!

But if they're not offering money off or any upgrades then sod that!

You will always feel like you've overpaid and been taken for a ride it will spoil the enjoyment of it.

@lemonmeringueno3
"Yes you're right they don't do discounts but 'contributions' so that the sale prices achieved look artificially high. I wonder how that affects national house price statistics, thousands of new builds achieving 'full price' when they didn't really."

Exactly...as if new buyers could look up prices others paid, they would all want a discount.

Agree the baseline doesn’t usually budge but you can usually negotiate additional things like patio and turfed garden (as opposed to 3 slabs and a pile of dirt), carpeting / wood flooring throughout, additional plug sockets, moving of walls if it’s not already built (eg my mum bought a house with a small kitchen diner and large living room, the neighbours in the same design house moved the walls so the kitchen-diner-family room was across the whole back of the house and the living room is smaller), electric garage door, outside tap, higher spec kitchen/appliances etc. Basically the little things that add up. I know someone who managed to get a hosepipe thrown in because they were moving from a flat to a house. My sister works for a developer, sales have plummeted and they’re making people redundant… I can assure you they’re desperate to sell. You did the right thing and they’re foolish. Eta discounts do happen though. My friend got 10% off list and many of the extras mentioned above.

How much were you trying to offer?
If it was £400k, I’m not surprised they were dismissive. If it was £420+ they should be taking you seriously. £440 and it should be yours.
As others have said, the price will influence all other sales for them though, so they have a game plan.
Maybe an email to head office?

I’d recommend looking up to the corporate. DWH is owned by Barratt Plc. Their financial year end is June so they have only just entered the second half of the year. Companies report performance to the market in quarters so you are more likely to get a deal if you put an offer in towards the end of a quarter as they will be pushing for sales. So mid March.

We bought ours 10 years ago and have just sold it ..

We didn't pay stamp duty but I got the plot I wanted with room to extend which we did and have made £200k in that time ..

Getting the right plot is key to making money on a new build IME .

I’ve never bought a new build but my understanding is that they rarely accept discounts on the purchase price so you didn’t do anything wrong. As others have said, they throw in various incentives instead.

It sounds like the saleswoman did a poor job, though, making you as a potential buyer feel bad. Weren’t there any smaller/cheaper properties on the same development she could have suggested you view?

Remember you have the NHBC and you can get snagging fixed so if you are alone then this would save you money . Are there any equivalent houses for that money in perfect condition ? If not then stretch yourself and buy it .

We have loved our new build but using our profit to get a project house .

I do think it depends on the developer and how you look after it but house is still in perfect condition 10 years later .

Thank you. I think I needed to hear the first bit, really. Doing everything on my own after decades of marriage feels hard but it feels pathetic to admit.

"My sister works for a developer, sales have plummeted and they’re making people redundant… I can assure you they’re desperate to sell. You did the right thing and they’re foolish. Eta discounts do happen though. My friend got 10% off list and many of the extras mentioned above."

Thank you. Definitely worth knowing. I do really like the house so can't help hoping they might come back to me.

If it were me I would bypass the local sales girl you spoke to and get hold of the regional sales managers email.
Write a polite and formal email carefully highlighting your position and the price you would like to offer. The end result may be nothing - but its worth a try for the sake of a 10 minute formal email. Often the bottom rung sales people don't have any authority for negotiating.

I didn't get that far.

I said something like 'shall we go back into the office for a chat then, because I'd like to make an offer' and she said 'well the price on Rightmove is the price and there's nothing else available on this plot.' I said 'so no incentives or negotiations at all' and she said no.

Good advice about their year end. I'll look that op. I guess they might also feel optimistic this week because they've probably had a bump in interest after Christmas.

There are but no she didn't.

I might do this, thank you.

New build developers rarely negotiate on price. You are more likely to be able to get them to agree to additional sales incentives such as throwing in carpets or an upgraded kitchen. Negotiating on price rarely works

@lemonmeringueno3 I think you did the right thing, I also think that developers are desperate to sell but if they reduce it effects their reported profits they have to publicy publish for shareholders.

You absolutely did not look like a mug, waling away was the right thing.

New build in my area have been reduced but these are small local developers, and they are still not selling. A bigger company has also gone bankrupt halfway through a build, all house have been covered in sheeting and abandoned.

Lots of houses still being built so this weakens the market as more sit unsold.

As you are living with family sit tight you are in a very good position.

Great advice and thank you for making me feel better.

I think I'll wait a few weeks so that they're not as 'busy', research year end and then write with a formal offer.

What do people think I should offer?

It's marketed at £495k with a 'deposit contribution' that brings it down to £460k - which is the price it was on for a year ago, so not a genuine offer really.

I can't ask for extras because it's built and completely finished, ready to move into. I could maybe push for some garden landscaping but she made me feel so cheeky and stupid for asking that I feel a bit scared!