Negotiating on a new build house help

[wineandsunshine]

Hi, we are looking at part-exchanging our house and buying a new build property. The developers have offered us £80k LESS than market value on our home. We then made an offer that was £100k less than the advertised value.
They came back and said they wouldn’t accept and we are now in ongoing negotiations.
Any advice on how much to increase by? We know our maximum!

How hard would it be to sell your house? Do you really need them to buy it? I would ask full price for your current home and a discount for making it easy for them for you to buy. Are those new builds flying off the shelf?

What % of the house price is £80k? When I looked at part exchange I was offered 4% less than market value which I was happy with considering I wouldn’t have to pay estate agents fees, and it took the risk out of buying a new build whilst in a chain. As it happens, I didn’t buy the new build, but if I had, I would have gone down the part exchange route.

What percentage of the 'market value' is 80k? If it's a lot, why not just market it and sell it yourself? By the way, if the 'market value' is based on what an estate agent has told you, I wouldn't take it too seriously.
What percentage off their asking price have you offered? How are the new builds selling? I'm assuming that they aren't selling well as you are trying to negotiate hard?

The other thing to consider is that developers don’t often like to give large deductions on the sale price. They would rather incentivise you in other ways, e.g. deposit contribution, stamp duty help, free upgrades etc.

Also, whet build stage is the house at? You are more likely to make headway if the house is ready for completion. If the plot has only just started to be built the developer has time to hold out fir a buyer willing to pay more than you.

A negotiation like this tends to come down to who is more desperate? The person wanting to buy (you), or the person wanting to sell (the developer).

IME a developer will not accept an offer on the purchase price for a NB.
They will offer all sorts of incentives (extras, legal & EA fees, SD etc) but the asking price is pretty much fixed.

They will usually try to avoid getting a lower 'sale price' on their books, but developers are really struggling now. I've seen masses of reductions on asking prices of new builds on Rightmove. It's definitely worth negotiating if there is a new build development which isn't selling. If it comes to a choice, any business would rather make some money than a loss.

They are reducing prices on new builds in areas where the market has come to a standstill. Not by much, but they are reducing, as well as offering incentives.

We’ve been told by someone who works for a developer, that many of them are slowing or stopping further building in some areas and/or hanging on to purchased land without doing anything with it.