Jump to content
House Price Crash Forum
non-FTBer

New Build Discounts?

Recommended Posts

Given the falling profits of the major builders, and that many new developments are continuing anyway.... has anyone got any idea:

  • Just how much of a discount is possible
  • When is the best time of year to go in low
  • Examples of discounts (on asking price, not incentives)

I've personally seen a few examples of their prices softening, but nothing huge.

Viewed house A in Oct 05. Asking price £200K and they said they wouldn't negotiate as 'they're all selling for full asking within a week'..... now a choice of a few on the market for £189K.

Viewed house B in Jan 06. Asking price £199950 and they also said they were selling without the need to discount.... now a choice of a few on the market for £195K.

Share this post


Link to post
Share on other sites

Some friends have just bought a new build in Stratford area for their parents getting out of SA. 10% off + Stamp paid (its a 350k home) + free carpets and appliances + free legal costs. Had they negotiated--who knows--another 10% off?

Deep discounting by builders shows that their confidence level in the market is hitting the skids.

Share this post


Link to post
Share on other sites

Given the falling profits of the major builders, and that many new developments are continuing anyway.... has anyone got any idea:

  • Just how much of a discount is possible

  • When is the best time of year to go in low

  • Examples of discounts (on asking price, not incentives)

I've personally seen a few examples of their prices softening, but nothing huge.

Viewed house A in Oct 05. Asking price £200K and they said they wouldn't negotiate as 'they're all selling for full asking within a week'..... now a choice of a few on the market for £189K.

Viewed house B in Jan 06. Asking price £199950 and they also said they were selling without the need to discount.... now a choice of a few on the market for £195K.

18 months ago I was renting a "luxury-built-for-young-professionals" new build flat. I popped into the on-site sales office to get a spare door key, and was offered 15 per cent off a 250k two-bedder on the spot :blink: . Not sure what things are like now.

I don't think we can read too much into the new build market; it seems completely detached from the mainstream.

Share this post


Link to post
Share on other sites

18 months ago I was renting a "luxury-built-for-young-professionals" new build flat. I popped into the on-site sales office to get a spare door key, and was offered 15 per cent off a 250k two-bedder on the spot :blink: . Not sure what things are like now.

I don't think we can read too much into the new build market; it seems completely detached from the mainstream.

Yes it is definitely detached, as the builders (and their salesmen) are more driven by targets than sentiment.

And it probably varies a great deal depending on the number of idiots wanting to live in a particular development.

I'd just like to understand whether anyone has any opinion on particular builders who are more amenable to negotiation. And whether there is a better time of year to negotiate (Nov - Dec I guess??). And if particular areas are more likely to see better discounts.

Share this post


Link to post
Share on other sites

I'm thinking of buying a new build, built by persimmon. It's on at £162,000, they offering -£3000, stamp paid and carpets. Was thinking of going in and offering £155k.

Has anyone got any experience of buying from Persimmon ?

Thanks

Share this post


Link to post
Share on other sites

I'm thinking of buying a new build, built by persimmon. It's on at £162,000, they offering -£3000, stamp paid and carpets. Was thinking of going in and offering £155k.

Has anyone got any experience of buying from Persimmon ?

Thanks

Yep they're nasty, it was a while back 1998 in Wiltshire, I was moving from Surrey sale agreed, deposit paid on persimmon house, carpets bought, sale fell through on London house, they wanted completion by New year, I couldn't do it, I lost deposit and all the money paid out on various furnishings. Had they waited 2-3 weeks would have been a done deal. Anyway who wants to live in new build they're tiny.......

Share this post


Link to post
Share on other sites

anyone ?

Best time to get a good deal on a new build is in December

Persimmon are doing OK because they have increased their volume by buying players like Westbury, so they may offer a deal, but they are not stuck for cash

The big players sell in all of the UK, so from a group point of view they can cover the poor performing regions by the better performing ones (and keep the balance sheet healthy for the time being)

One of the first casualties this year would be Laing Homes, which has gone

It was owned by george Wimpey, but kept seperate until recentley, however Laing is only South East, hence it doesn't have the same spread, hence its gone

Share this post


Link to post
Share on other sites

I managed to get a £310 K flat down to £238 K once! In hindsight it was a great deal. The situation was that they had to meet some sort of target to sell so many flats by a certain date, and I was the only buyer around before Christmas. Having signed up for £250K I had cold feet, backed out, and they made me an offer at £238K. By that time I'd made up my mind that I didn't like the place and walked away.

Move forward 4 months; frustrated at finding nothing I liked I revisted the same vendor last month and they wouldn't drop below £250 K for a flat priced at £270 K so I lost my window of opportunity.

Try end-of-quarter or end-of-year when targets have to be met.

Neil

Share this post


Link to post
Share on other sites

Was on a new build estate a few weeks ago talking with the sales rep. She said their were no discounts because all the houses available had been 'reserved'.

Then she said the problem was that although people had reserved the houses these people couldn't sell there current homes - nothing was selling on the local market.

I wonder how long a developer will hold onto a reserved plot for - and if the chain has broken down how long will it be before the developers start having to offer discounts.

I can now see why there is such a fuss to get FTB's back into the new build market - there is no chain left - except the one attached to the ball and tied round home owners.

Share this post


Link to post
Share on other sites

depends howgood your negotiation skills are,

spend all day with excellent preparation negotiating with the sales person at the housing estate,

some might say 'spend all day there you must be kidding? but think about it if you can negotiate all the extras and a discount valued at £10,000 over and above what they are already offering the isn't it worthwhile??

also you will get on their t*ts so much that by the end of the day thery will agree or you say i'll come back tomorrow.

folks spend three hours over buying a £500 second hand car (getting there, test drive and chatting and then returning home) to haggle £50 off the price and think thay have done well, spending all day to get £10k seems very wise use of time.

i have made significant ancillary income from negotiating a price of second hand vans down by good preparation and finding comparables to back up my value, to buy the vehicle clean it up and do exactly the same thing with different comparables to sell it. both the persons i bought from and the persons i sold to had done no preparation at all and agreed with almost everthing i said, easy £300 made, £200 off the buy price and £100 onto the sale price over the true value (my estimate only there, but £100 more than i would have parted with the van for). 3 hours work thats £100 per hour less £20 for an ad i'll have some of that please

its not hard, how many people negotiate with larger purchases in shops TV and electrical equipment, holidays etc etc?? not many i guess but why not?? They are not expecting it, the longer you engage them the more likely they are to to a deal.

do you rpreparation, get in there sit in front of them and take up their time, play on their weaknesses (they need to sell for cashfow, more properties ready to come to market on the development, slow market etc etc and go for it, nothing to loose the worst that can happen is say they say no. (bet you get a call a few days later).

MH

Share this post


Link to post
Share on other sites

Talking of Persimmon,

They took over a local Westbury development in Camelford Cornwall

Every time the Landregistry figures are updated i'm checking to see what sort of prices

they are getting, but as far as i can see none/zero have been sold theres a few with reserved in the windows but thats it.

http://www.persimmonhomes.com/findmyhome/s...2C2%2C3%2C4%2C5

Strange

Phil

Share this post


Link to post
Share on other sites

Given the falling profits of the major builders, and that many new developments are continuing anyway.... has anyone got any idea:

  • Just how much of a discount is possible

  • When is the best time of year to go in low

  • Examples of discounts (on asking price, not incentives)

I've personally seen a few examples of their prices softening, but nothing huge.

Viewed house A in Oct 05. Asking price £200K and they said they wouldn't negotiate as 'they're all selling for full asking within a week'..... now a choice of a few on the market for £189K.

Viewed house B in Jan 06. Asking price £199950 and they also said they were selling without the need to discount.... now a choice of a few on the market for £195K.

I would have thought that the best time to buy is just before their financial year end - you can probably find this on the companies house web site. If not, it will probably be in their accounts, which again you can order from companies house for a few pounds.

For example - see http://wck2.companieshouse.gov.uk/58bc7665...82//compdetails

Share this post


Link to post
Share on other sites

Been in this afternoon, was in there half an hour, she won't budge and says not worth talking to her bosses, it's on at £162, they offering a £3000 discount and stamp duty paid. I said £155k and stamp duty paid, she ummed and arred, then said that it is a popular development etc.... (usual rant) and they don't have to discount them. There are four houses of the same design that I want, two have been released for about 3 months and have not moved, the other two were released 2 weeks ago. Strange that they will not accept my offer. The fact they been on there that long with no buyers suggests I might have problems when I come to sell it, for the moment I am staying clear. She has my number, guessing she will come back to me, if not, their loss !

Share this post


Link to post
Share on other sites

Been in this afternoon, was in there half an hour, she won't budge and says not worth talking to her bosses, it's on at £162, they offering a £3000 discount and stamp duty paid. I said £155k and stamp duty paid, she ummed and arred, then said that it is a popular development etc.... (usual rant) and they don't have to discount them. There are four houses of the same design that I want, two have been released for about 3 months and have not moved, the other two were released 2 weeks ago. Strange that they will not accept my offer. The fact they been on there that long with no buyers suggests I might have problems when I come to sell it, for the moment I am staying clear. She has my number, guessing she will come back to me, if not, their loss !

I've been told that old chestnut.

Then seen the same house for sale 3 months later with a big reduction. :lol::lol:

Share this post


Link to post
Share on other sites

saw an advert in the local paper last week and they were offering a house for £179,950 cut from £189,950 and they will pay 5% deposit and the stamp duty bringing the house down to less than £170k so an overall discount of £20k

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.