New Build Discount


#1

Hi all,

I’d like some advice on bidding for a new build property.

The property I am interested in is in a new development in north Dublin and is made up mostly of townhouses aimed, I think, at downsizers from the surrounding suburbs. This development consists of less than twenty houses and is mostly complete - the finish looks to be of a reasonably high standard. The agents have been marketing these houses for at least 6 months and so far only two of the houses are under offer - one for asking and one for about 8% under asking. I think that 8% under asking is not unreasonable based on sale prices locally but I think that I might be able to push for a little more given how few have sold so far. So, I was wondering if the collective wisdom of the posters on this site might help me with the following.

What type of margins do developers in Ireland make on new build houses as this might help me when it comes to submitting a bid. The price range of the development ranges from €760k to €1.1m for a one-off large family home so these are not starter homes.

I am concious that the developer probably does not want to continue to set progressively lower selling prices on each sale so I was thinking that I could eventually match the price that the 8% discount guy achieved but see if I could get them to lay down the same flooring as the show home (these properties only come with bathroom flooring as standard) plus perhaps some of the show home furniture or whatever else I could get them to chuck in. My question here is do developers do deals like this or is it too much hassle for them?

I might add that I do not live in Ireland at present and I do not need to buy a property at all. I live in the UK and have a euro denominated windfall coming my way through work and I’d like to move this out of the UK ahead of whatever political or economic chaos Brexit may cause. I appreciate that Dublin property may be at or near a peak and the timing looks awful but I’ve been looking for a particular type of property in a small number of Dublin suburbs and this one pretty much ticks all my boxes.

Cheers in advance for advice/thoughts.


#2

It’s a difficult one to get right. If it’s a smaller developer there probably is a better chance of getting a better deal. The big operators can wait out some of the short term machinations. It’s a lot of money so the question probably should be is it your ideal location in terms of quality of life?


#3

Thanks for replying.

In therms of location this area is nigh on perfect for me. I would hope to spend more time in this property as I get older so proximity to shops and pubs/restaurants is important because I do not want to be dependent upon a car. It is near friends and family in Dublin and public transport links are pretty good (well by Dublin standards at least).

I’ll look into the developer to see if I can get an idea of the size of the company.


#4

I could be wrong on this but i think supply and fit for carpets etc is 13.5% VAT vs 23% for consumer so getting stuff put in by the builder is certainly a good idea. Also they will get volume discounts on top of this


#5

our estate was a similar scheme at similarish prices, 19 houses only and there were some houses sold at asking and some where deals were done. I think with the houses sold at asking they were given a 10k flooring allowance. The estate was done in 2 phases so prices for phase two were roughly 8% higher than phase one.

The developer was smaller so it was possible to do a deal, compared to Cairn and their albany estate which isnt shifting but the prices are being held.