Property bargaining

[Jack_Hammond]

I am keen on buying a place in a complex, off-plan straight from the developer, how possible is it to bargain with and get a discount on the pamphlet price, is it something one can do?

Has anyone else gotten some $$$ knocked off the price of a new development, and if so, how much percentage-wise would be a reasonable expectation.

 

[Jack_Hammond]

Bumping... nobody with some advice? :/

 

[rorz0r]

My advice would be don't buy off plan straight from a developer... They take their time, cut corners, leave you without a liveable place, etc etc. Have heard lots of horror stories about things like this. If he sells the stuff before it's even built do you think he will try and get the quality right?

 

[Smooth Criminal]

It's simple, let them work for their money. Don't just fork it over and give them free reign to do as they please now that the money is already in their account.

If you're buying off plan, at the very best pay as small a deposit as possible now, and the rest upon completion.

 

[Jack_Hammond]

Thanks, I definitely do plan on being a very hands-on owner in the development process, as I too have heard far too many horror stories of dodgy developers. It also helps that my parents are both civil engineers so I have picked up on what to look out for over the years.

My only problem is I am completely clueless on when to haggle and how much, I know most pre-owned houses and cars have about 20% margin added within the list price where you can make a deal, but with new things I am not so sure about it.

 

[noxibox]

My only problem is I am completely clueless on when to haggle and how much, I know most pre-owned houses and cars have about 20% margin added within the list price where you can make a deal, but with new things I am not so sure about it.

I've never known a developer to be willing to haggle. They act more like a retailer and they typically will tell you the marked price is the price you have to pay. Margins on pre-owned will vary, and particularly on cars, dealers are often unwilling to budge much. When it comes to houses a lot depends on the seller - are they in a hurry, can they afford to sell for much less, etc.

The one golden rule is never ever pay builders, contractors and developers upfront. They will screw you.

 

[Jack_Hammond]

I've never known a developer to be willing to haggle. They act more like a retailer and they typically will tell you the marked price is the price you have to pay. Margins on pre-owned will vary, and particularly on cars, dealers are often unwilling to budge much. When it comes to houses a lot depends on the seller - are they in a hurry, can they afford to sell for much less, etc.

The one golden rule is never ever pay builders, contractors and developers upfront. They will screw you.

Thanks Noxibox

I met with the reseller today, and they say that the developer *might* consider a 5% discount, which is great, it means they are open to haggle. I think the fact that a squatter camp is right across the valley is indeed making them desperate, but I know that this camp will be RDP'ed soon, so for me it's not a risk, simply a bargaining tool

 

[phoneJunky]

Hey Jack, you buying in Centurion? If so, I also looked at that development. But I got a deal on a house for about 20K more...

 

[LancelotSA]

My only problem is I am completely clueless on when to haggle and how much, I know most pre-owned houses and cars have about 20% margin added within the list price where you can make a deal, but with new things I am not so sure about it.

I highly doubt this. That would mean you could expect to get R200,000 knocked off a million rand house. We recently sold and we were given a valuation range from the agents. They then put it on the market at the upper end of the range. We ended up selling for about 3% less than this price.

 

[phoneJunky]

I got a massive 40K of and that was only about 7% off, and the estate agents says it doesn't happen that often to get that much off.