One of the advantages in buying a new build home is sometimes having the opportunity to negotiate with the housebuilder for some ‘extras’. Yet, how do you go about getting extras as well as know you are getting the best deal possible? Well, to begin with, make sure the developer hasn’t priced the new house for more than it should be. You can negotiate on the actual property price if you think it’s a little too high.
Take into consideration the following:
- Since you’re buying a new build home you’ll be paying a premium in comparison with similar, re-sale homes. Make sure this premium isn’t too much by looking at the price per square foot of comparable properties. This should give an indication of the premium you’re paying.
- If you’re part-exchanging, the builder will offer less for your home than it would get on the open market. What you’re gaining in return is not having to find a buyer yourself, not being part of a chain and not paying an estate agent.
- Make sure the ‘extras’ are really worth it or not something you could easily do without. If a developer offers to pay your stamp duty, for example, that’s worth having. Yet, if you’re offered furnishings as an extra, you may not have the choice of what you receive. Also ask yourself if any extras being offered haven’t already been built into the price of the new house.
- Naturally, the reason a developer offers you extras is as an incentive to make you purchase the new house. That’s less likely to happen if interest in the new home is already high and there’s high demand for the new build. However, if there are a number of developments of new houses in the area, this means competition will be higher and you’re likely to be in a better negotiating position to get those extras.
- Choosing when to negotiate can often give you an advantage. Developers may be more willing to negotiate as the end of the financial year approaches (usually June or December) and they don’t have many properties left or if some properties are taking time to be sold.
- Play developers off against each other. When you see developer A, tell them that developer B has offered such and such extra and can they match it. You could do the same to developer B. If competition is strong enough, you could end up with a few extras you wouldn’t have otherwise got.
Whether it’s the new house price or extras you’re negotiating, you can often get a better deal. It’s another reason why buying a new build home is such a popular choice with so many people.