Gransnet forums

Buying a New Build Home

(21 Posts)
SpringyChicken Sun 11-Mar-18 21:36:18

My daughter wants to buy a new build house but can't afford the asking price. After researching, I see that new build prices aren't set in stone and it's worth putting in an offer. Has anyone done this? Any tips and your experiences would be most appreciated.

Eglantine21 Sun 11-Mar-18 22:43:00

Oh yes. Got 10% off and negotiated wardrobes, flooring, dishwasher and landscaped garden. But I was in a good position to complete quickly.
It will depend how sales are going.
It's always worth a try.

M0nica Sun 11-Mar-18 22:48:05

The market is slowing down, builders should be ready to do a deal just to get the houses sold.

If they say the houses are going like hot cakes, do not believe them.

Missfoodlove Mon 12-Mar-18 00:10:37

If your daughter has the funds approved and can proceed quickly then it is likely she may success negotiate a discount.
We negotiated a 20% discount on a new build some years ago albeit in a falling market.
She has nothing to lose and it’s not going to offend anyone so do it and good luck. 👌

kittylester Mon 12-Mar-18 06:29:13

Has she investigated Help to Buy?

SpringyChicken Mon 12-Mar-18 06:41:34

She was initially lured in by the Help to Buy scheme, Kitty but we’ve discouraged her as it could turn into a financial nightmare. So many drawbacks to it.

Oopsadaisy12 Mon 12-Mar-18 08:53:15

Has she thought of Shared Ownership? My DD and her family bought a flat in London with this scheme I think they bought 40% and then bought more as they could afford it, it got them onto the property ladder and they are now in a home of their own.having said that it was about 20 years ago.....

SpringyChicken Mon 12-Mar-18 09:34:23

She shouldn’t need to go down that route, Oopsdaisy. Her problem is that she wants a bigger, better house than she can afford. She can afford a house, just not the one she wants. We’ve decided on a plan after much deliberation. We’re talking to her in her lunchtime today and advising her to put in an offer on the house which is on hold for her, 15% below the advertised price, by phone (easier than face to face). If they say no, she has to lower her sights.
Thank you all for your advice, I’ll keep you posted.

rizlett Mon 12-Mar-18 13:22:30

Good Luck to your daughter Springy - fingers crossed!

SpanielNanny Mon 12-Mar-18 13:27:34

Friends of my son & dil were able to negotiate a substabtial discount on their new build. They held out for when there was only a 1 left on that particular bit of the plot. The building company wasn’t leagally allowed to move on to the next part of the estate while houses sit empty.

Oopsadaisy12 Mon 12-Mar-18 13:29:52

Well I guess we always want what we can’t have, with the cost of moving, solicitors fees etc. It might make more sense to be saving towards a newer house and not borrowing too much. Good luck whatever she decides to do.

glammanana Mon 12-Mar-18 13:38:57

Srpingchicken I was a New Homes Negotiator for many years and I know from experience that there is a degree of moveability on the price quoted,if the house is already completed she can offer a price reduction due to the kitchen/bathroom/tiling/choices being done also to agree a quick exchange of contracts will help discounts.
A good negotiator will put this to her Sales Manager because this time of year many Companies of New Build will be looking for their end of year completion figures ie (April) Good Luck.

glammanana Mon 12-Mar-18 13:42:33

Woops !! forgot to add ask Negotiator for help towards Solicitors costs this is not unreasonable or for Company to carpet the property Barrets used to this as part of the deal it goes a long way to help new buyers.

radicalnan Mon 12-Mar-18 15:09:30

There is never anything to lose by making an offer, the worse they can say is no.

Ramblingrose22 Mon 12-Mar-18 15:22:14

SpringyChicken - I'd be interested to know why Help to Buy can turn into a financial nightmare as I was thinking of recommending it to my children.
Can you elaborate, please?

Florence64 Mon 12-Mar-18 15:40:03

I used to work for a new home builder. It was a long time ago, but it's always worth asking for something like carpets or turf to be included in the price. We used to build in what was called 'an incentive' into the price, which could be the deposit, carpets and curtains or possibly landscaping. Things may have changed now though.

Nanabilly Mon 12-Mar-18 15:42:10

I wonder if there is any info on the help to buy schemes on the moneysavingexpert website .If anyone would know pro's and con's it will be marti n lewis.
Might be worth taking a look . Everything I've heard about it was positive unless things have changed

SpringyChicken Mon 12-Mar-18 18:13:36

Well, the house is not to be. Daughter sent an email with the max price she could afford and the reply came back that they couldn’t drop that low (which implied that the price was negotiable to some extent). So she’s pulled out. I’m relieved to be honest. She will get over the disappointment and realise it was for the best. Thanks for all your comments.

Dyffryn Tue 13-Mar-18 09:24:59

My daughter bought her first house on Help to Buy, she was fine although I did encourage her to pay it off when the time came for her to remortgage. Luckily she had had a few pay rises and was able to do so. Help to Buy was not a financial nightmare for her but an aid to getting on the housing ladder.

TerriBull Tue 13-Mar-18 10:05:56

My son and girlfriend also bought a house about a year ago on Help to Buy, they are managing to save now because they are paying much less than they were when they were renting in London, but they have gone out 40 miles or so and pay quite a bit on their commute. Hopefully they will be able to wipe off some of the extra borrowing when the full amount becomes payable. They didn't manage to negotiate a discount unfortunately, I wish they had because I thought their house was a little over priced, but the selling point of this development is that it's right next door to a train station that has a very good, fast connection to London and therefore popular with commuters.

SpringyChicken Tue 13-Mar-18 21:51:05

Ramblingrose, daughter and her boyfriend were going to have as large a mortgage as they could and a massive help to buy loan of £80k!!!!! There is no way that they could save £80k to pay off the loan after 5 years so they would have to pay interest. The rate increases are compound and also affected by the RPI so that is a scary unknown. In no time at all, she could have been paying £1400 + interest per annum on the help to buy portion and rising. Also mortgage rates are less favourable for help to buy. We could not see how all these factors together would be a good deal. We looked at several articles online and couldn’t find much in favour of the scheme. Not for my daughter at least.

Join the discussion

To post you need a valid nickname and password. Log in if you are a returning member, or join for free.

If you have forgotten your nickname or your password, you can get a reminder.