Buying a new build home can be an exciting process, but many buyers often wonder if they can negotiate the price.
Unlike buying a pre-existing or older property, negotiating with a builder or developer, rather than the typical seller may involve a different approach. Developers have fixed costs and profit margins, but that doesn’t mean there isn’t room for negotiation. In this article, we look at ways you may be able to reduce your price.
- Research the market
It’s essential to have a solid understanding of the local real estate market before attempting to negotiate the price of a new build property. Research comparable homes in the area and note their selling prices and features. This will give you a baseline of what similar properties cost, helping you determine whether the asking price for the new build is fair.
Look at recent sales of similar new builds in the area, or by the same developer, and research the developer’s previous pricing strategy.
- Timing
Builders are often more flexible during certain times of the year or phases of development. They may be more willing to negotiate at the end of their financial year or quarter when they are under pressure to meet sales targets. Additionally, during the final phase of a development, they may want to sell the remaining homes to finish the project quickly.
- Negotiate upgrades rather than price
Some developers may be less likely to lower the sale price, but they may be more open to offering free or discounted upgrades, which adds value to the home without affecting the base price.
Examples of Negotiable Upgrades:
- Premium flooring (e.g., hardwood or tile)
- Kitchen upgrades (granite countertops, upgraded appliances)
- Landscaping packages
- Finished basements or additional rooms
- Smart home technology (security systems, smart thermostats)
- Leverage Incentives
Builders often provide incentives to attract buyers, especially if the project is slow-moving or near completion. Always ask if there are any current promotions or special options available, as these may save you thousands in the long run.
- Be willing to walk away
One of the most powerful ways to negotiate is simply being willing to walk away. If the developer knows you’re flexible and considering other properties, they may become more motivated to make a sale. Have a clear budget and don’t be afraid to let the builder know you’re willing to explore other options if your needs aren’t met.
Negotiating the price of a new build requires patience, market knowledge, and a willingness to explore different options. While builders may have less flexibility on price compared to traditional home sellers, there are many ways to save money through incentives, upgrades, and financing options.
Further reading
Purchases – Oakwood Property Solicitors
WHAT TO DO NEXT
To make a start on the next step in your property journey, get in touch today to book a consultation with a member of our team. Call us on 0113 218 5727 to find out how we can help you.
