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New Builds - What Discounts Have You Had?

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Hi

I am looking to purchase a new build property from a national housebuilder in South Wales. We have sold our house STC so we are in a strong bargaining position.

I would be interested in hearing what discounts / incentives other forum members have been able to negociate recently

As I was looking of asking of around 25% discount, its a new site which launched about 3 weeks ago.

TIA and look forward to any advice you have

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The discount is going to depend on the developers financial position, and on how the development is selling, and critically how well they've priced it in the first place.

For examples I'll use two new developments I've looked at this year:

First I looked at a Shanley homes development near Watford (Sadly gone from their website now). The houses had been realistically priced at around £1m when shabby homes 30% smaller were being marketed in the surrounding streets for similar prices.

I turned up on the open day and there were cars whizzing in and out the whole time I was there. Three went on the first weekend. I put in an asking price bid on the last plot, but the developer withdrew it and sold it for 50k more than the others a couple of weeks later. All went to chain free buyers, and all are now occupied.

Then there's this development, in Crouch End: www.bristongrove.co.uk

I looked at it in Jan, told the agent it was 350k over valued and put in a low bid which the developer turned down. It's now dropped by 100k, one has been under offer since Feb, but basically all four houses remain unsold and the developer won't budge on price.

And ultimately, the Watford houses were better value at the asking price than what I think the Crouch End ones would be with 25% off the asking price.

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I am looking to purchase a new build property from a national housebuilder in South Wales

Where ?

This matters - new developments in some bits of S Wales are going to become un-sellable quite soon whereas other bits are likely to fair better.

One way to approach the question is to ask what sort of person would buy the house, how much they might be earning in that area and what size mortgage/deposit they'd have. That should tell you the price level at which people will be able to bid in realistically.

Friends of ours are trying to sell a 4-bed estate house in an OK bit of S Wales for almost 300k, and if you use this analysis you realise that actually they've got no chance of an offer anywhere near that.

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Hi

I am looking to purchase a new build property from a national housebuilder in South Wales. We have sold our house STC so we are in a strong bargaining position.

I would be interested in hearing what discounts / incentives other forum members have been able to negociate recently

As I was looking of asking of around 25% discount, its a new site which launched about 3 weeks ago.

TIA and look forward to any advice you have

For a site that has been for sale 3 weeks, I would say

No chance!

tim

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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