Page 3 | Cheeky offer and additions on new build.

tralalaa1225 · 2025-02-24T12:59:19+00:00

I am a cash buyer (as in money in bank) and have my eye on a newbuild. The development is selling very slowly and the 3 bed I like has had a 'discount incentive' of £20k for the last 6 weeks - so being marketed at £315k (with discount). Friend who's an EA reckons I should go in at £300k as I'm in such a strong position and we're at year end. Is this realistic? Could I also push for extras such as patio/white goods etc?

Smidge001 · 06/03/2025 08:21

They originally had a discount incentive to bring it down to £315. You thought it too much and offered £300k. They are now coming back and saying £325! That's higher than before, I don't understand why you're even considering it. They clearly could go down to 315 as that's what they were marketing it at before.

I would be firm and not budge a penny below 315.

Geneticsbunny · 06/03/2025 08:32

I assume you know this but just checking that you are aware that new build houses lose value for the first 5 years on average and then settle down price wise. So as soon as you move in, you will probably be in negative equity for 5 years.

Original poster

tralalaa1225 · 06/03/2025 08:45

Sorry I should be clear.

Advertised at £335k, then they marketed a cash incentive of "up to" £20k. I went in with an offer of £300k.
Offer rejected and I was told there was no discount on that plot; they were only offering a flooring and turf package.
Told them the advert was misleading and left it at that.

New sales guy came back back and offered a £10k discount, so £325k.

There is a stock plot, a finished house whose sale fell through about 8 weeks ago. It's on for £400k

OP posts:

tyish · 06/03/2025 08:52

I assume you know this but just checking that you are aware that new build houses lose value for the first 5 years on average and then settle down price wise. So as soon as you move in, you will probably be in negative equity for 5 years.

This is absolute BS. There are so many variables to this that it would be nigh on possible to say it's remotely true. I've lived in 3 new builds (in 3 different areas) and none of them went into negative equity, not even the one we had to get valued only 18 months in due to a ported mortgage, and that was the one we bought at a really high point in the market around covid.

Mortgage lenders wouldn't lend if it was guaranteed you'd go into negative equity, because that would be bad business (they absolutely have tighter criteria, because new builds do not appreciate at the same level off the starting block, but that is not the same as an inevitability of negative equity).

rainingsnoring · 06/03/2025 09:00

tralalaa1225 · 06/03/2025 08:45

Sorry I should be clear.

Advertised at £335k, then they marketed a cash incentive of "up to" £20k. I went in with an offer of £300k.
Offer rejected and I was told there was no discount on that plot; they were only offering a flooring and turf package.
Told them the advert was misleading and left it at that.

New sales guy came back back and offered a £10k discount, so £325k.

There is a stock plot, a finished house whose sale fell through about 8 weeks ago. It's on for £400k

I see. That's a bit different. I expect they meant that they would pay SDLT and came up with this figure in relation to the most expensive plot on the site plus maybe upgrades included in the figure. I suspect they didn't mean a discount from the list price. It seems, in light of the new information, that the 300k was probably unrealistic. However, the fact that they are offering any discount suggests that they are very worried about sales.
What do you mean by your comment on the 400k house? Is it a different size plot/house or the same?

It is well known that new builds lose value the moment you move in so you do tend to be in negative equity technically in many cases in the short term. Obviously, if the general market rises rapidly, as during Covid, that doesn't apply. Valuations aren't sale prices and many are very over optimistic at present.

Twiglets1 · 06/03/2025 10:24

tralalaa1225 · 06/03/2025 08:45

Sorry I should be clear.

Advertised at £335k, then they marketed a cash incentive of "up to" £20k. I went in with an offer of £300k.
Offer rejected and I was told there was no discount on that plot; they were only offering a flooring and turf package.
Told them the advert was misleading and left it at that.

New sales guy came back back and offered a £10k discount, so £325k.

There is a stock plot, a finished house whose sale fell through about 8 weeks ago. It's on for £400k

Why is that 400k one so expensive?

Original poster

tralalaa1225 · 06/03/2025 13:02

It's still 3 bedrooms but bigger and a different style.

OP posts:

Twiglets1 · 06/03/2025 13:04

tralalaa1225 · 06/03/2025 13:02

It's still 3 bedrooms but bigger and a different style.

It does suggest the house you’re interested in isn’t that overpriced at 325k though? Seeing as they both have 3 bedrooms & that one had a buyer. Unless it’s considerably bigger by square footage.

thaisweetchill · 06/03/2025 13:15

I work for a national house builder and it all depends on when the property will be completing. If it's a 'stock' plot, so ready to legally complete tomorrow, they'll definitely consider offers and will do most to reserve you. If it's not ready to complete for a few months they'll be less likely to reduce or offer incentives.

Also depends when their financial half year/year ends are as they'll be targeted for how many plots they sell for then.

I would whittle your list down slightly as contrary to other posters, the extras you want do cost us (don't know why people think they're free!)