How to Negotiate Better Terms with a Developer When Buying a New Build

Terms with a developer can be negotiated, but the requests that work best are practical ones the developer can meet without losing face: a parking space included in the price, the deadline for client changes, or the payment schedule. A straight discount on the price is usually the hardest to obtain, so it makes sense to negotiate a whole package. The most important thing is not to let yourself be pressured and to have every agreement in writing in the contract.

Before you start negotiating: preparation

Good negotiation starts with an overview of the market. Browse the project catalogue and compare similar flats in the same location. If you know what the competition offers, it is easier to tell whether a request is realistic. It is also useful to find out how long the project has been on sale and how many units are still available, because this affects the developer's willingness to negotiate.

Before the meeting, decide:

• what is essential for you (for example a parking space or the layout),
• what is a welcome bonus (for example better flooring),
• what maximum price and instalment you are willing to accept.

Check a realistic budget in the calculator, and then confirm it with a mortgage specialist. The more secure your financing, the stronger your position, because the developer knows the deal will not fall through because of the loan.

Discounts: how to ask and what to expect

A direct discount on the price is difficult to achieve with new builds. Developers usually have a price list set for the whole project, and individual discounts would upset the relationship with other buyers. It is still worth asking, especially if you are buying several units, paying quickly or considering a unit that has been unsold for a long time.

Instead of percentages, try other forms of benefit:

• Higher specification at no charge: better floor tiles, wall tiles, a fitted kitchen or interior doors.
• Parking or a cellar included in the price: often easier than a reduction in the price of the flat.
• Adjusting the payment schedule: for example, a smaller payment at reservation or a more suitable spread of payments.
• Taking over some costs: for example fees connected with the transfer, if the developer is willing to discuss them.

Beware of "discounts" that are merely a mark-up: check whether the stated original price was genuine. Consult a lawyer or tax adviser on the tax and legal consequences of any concession.

Parking and ancillary spaces

A parking space is a frequent subject of negotiation. For each project, find out whether the space is included in the price of the flat or sold separately, whether it is owned or rented, and whether it is possible to buy a space later. Buying one later is often the problem, because garage capacity is limited.

What to ask about:

• the specific number, location and dimensions of the space,
• whether there is provision for an electric-car charger and who pays for the installation,
• the price and conditions for visitor spaces or a second car,
• the conditions for a cellar, bicycle room or small front garden.

If you are not buying the space together with the flat, check whether you can later sell or let it to someone from outside the building. Always have the exact terms checked by a lawyer.

Client changes

Client changes are an area where you can save money or, conversely, pay extra unnecessarily. Ask by what deadline changes can be submitted, who processes them and how they are priced. Layout alterations, moving partition walls or other utility routes are often possible only at an early stage of construction.

Recommended approach:

1. Ask for a written list of standard and above-standard features.
2. Request a price quotation for each change separately, not as a lump sum.
3. Check whether the change will extend the completion or handover date.
4. Find out who is responsible for any defects in the altered part.
5. Have all approved changes included in an annex to the contract.

Also consider what is better arranged separately after handover, for example the kitchen or built-in wardrobes. The developer sometimes offers convenience, but not always the best value for money.

What to have in writing and whom to involve

A verbal promise carries no weight in a dispute. Every agreement, whether about parking, fittings, the deadline or changes, belongs in the contract or its annex. It is important to have the following clearly described:

• the price and the payment schedule,
• the completion and handover date and the consequences of missing it,
• the scope of the specification and any changes,
• how payments are held and secured,
• the conditions for withdrawing from the contract.

Have the contract reviewed before signing by a lawyer who specialises in property, and discuss the financing with a mortgage specialist. You can find the general steps of the whole purchase in the buying guide. By locations and developers you can compare how the terms differ. If you are unsure how to choose, you can use the housing inquiry form.

Frequently asked questions

Is it worth asking for a discount when the list price is fixed?

Yes, but it is more realistic to ask for indirect benefits, such as a parking space, a better specification or an adjusted payment schedule. Always have them written into the contract.

When is the best time to negotiate?

You are in the strongest position when your financing is settled and you know a comparable offer. However, client changes are time-limited, so deal with them as soon as possible after the reservation.

Do I have to bring a lawyer to the negotiation?

It is not mandatory, but it is sensible before signing a contract for a future contract or a purchase contract. A lawyer checks that the agreements are correctly recorded and that your money is protected.