New-build buyers negotiating 14% reduction
The latest market analysis by Unlatch, the new homes sales progression and aftercare platform for developers and housebuilders, reveals that new-build homes sell for 14% less than their original asking price, proving that there is a huge benefit in purchasing a new home, not just on the economic savings but also taking advantage of the many incentives that can often be offered to buyers.
According to the latest Gov.uk UK House Price Index, the average new-build home in Britain sells for £394,699. This is a 36% premium compared to the wider national average house price of £289,807. But just because a home is brand new, it doesn’t mean it’s not worth negotiating over.
However, based on the average asking price for new-build homes currently available for sale, Unlatch’s research reveals that new-builds actually sell for -14% (-£63,753) less than their original asking price (£458,452), proving that buyers should always be willing to negotiate with their house builder instead of simply accepting the original asking price.
In London, the difference between new-build asking prices and sale prices is even bigger. Homes come to the market with an average price tag of £712,503 but actually sell for -20% less at £567,526.
In both the South West and North East, new-builds sell for -13% less than their asking price and, in Scotland, the saving for those who haggle is -12%.
In Wales, the East Midlands, and East of England, the potential saving is smaller but still significant at -2%.
Lee Martin, Head of UK for Unlatch says:
“As a nation, we Brits aren’t known for our negotiating skills. And even when we do give it a go, it usually surrounds second-hand goods such as cars and antiques. Very few of us are even aware that new-build house prices are up for reasonable negotiation and they’re not set in stone.
Incentives such as money towards your stamp duty, legal fees, furniture packs and even mortgage and/or service charge fees are popular incentives developers often offer during the lifespan of the scheme. It should be noted that these incentives are offered either at the start or end of a development, or throughout if the sales are slow in order to kick start the momentum, so everyone wins.
So, if you’re in the market for a new-build, always be prepared to negotiate with the developer. The chances are that their asking prices are set at a level they are happy to reduce slightly for a quality buyer in a proceedable position who is bold enough to ask for a discount.
The lesson is, if you don’t ask, you don’t get. After all, what’s the worst that can happen?”
