If you are after a new build property then the Credit Crunch could help you nab a bargain. Thousands of new properties have been built in the last ten years, but with the Credit Crunch biting; most of the biggest Building Firms are winding down construction until trade picks up again. Most are keen to get the existing stock off their books so they can lay off the sales teams and hibernate on a skeleton staff until the sun shines again.
A recent study conducted by the money team over at the Daily Mirror found that buyers who haggled would get money off their purchase on 100% occasions – how’s that for a hit rate. The investigators also found that the level of discounts is now much more than would previously have been thought. A year or so back people would have been quite content with a few thousand off the list price, carpets and a few white goods. Less than a year ago, you would have accepted the above but also stamp duty paid. Today you should accept nothing less than a discount in the realms of tens of thousands of pounds. It is a Buyers Market, and believe me, the National House builders do not have queues of potential buyers waiting outside.
There are two caveats you should remember when starting your negotiations with the builders though! First of all, be aware that you don’t get anything for nothing. If the builder is prepared to knock £20k form a £175,000 asking price, then the property is probably only worth £155,000 on the open market anyhow.
Secondly, and this is very important, always, always find out the second hand value of the property. New builds in the UK are a bit like brand new cars nowadays. As soon as the “new” tag no longer applies the price drops dramatically. Always ask yourself if it is worth paying the extra, or if a second hand property would do.