New build negotiations – buyers purchasing new homes ask for 14% off

In a recent market analysis conducted by Unlatch it was discovered that new-build homes sell for 14% less than their original asking price. These results prove that buyers willing to negotiate can make a worthwhile saving on their new home. 

The new homes sales progression and aftercare platform for developers and housebuilders analysed the latest Gov.uk UK House Price Index to uncover these findings.

Properties sell below market value

The average new-build home in England sells for £394,699. This is a 36% premium compared to the wider national average house price of £289,807.

Unlatch’s research reveals that new-builds actually sell for -14% (-£63,753) less than their original asking price (£458,452.

Some of the biggest differences between new-build asking prices and sale prices were found in the capital. Unlatch’s findings show that homes come to the market average price of £712,503 but actually sell for -20% less at £567,526.

New-builds sell for -13% less than their asking price in The South West and the North East while properties in Scotland sell for -12% less.

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.”