New Land Release Prices - negotiable?

[zee]

Hi All,

This might seem a stupid question, but we have never purchased from new land releases before. Just wondering, can we negotiate the price with the land developer (ie. Oliver Hume) or the prices they set on their release date are all fixed?

Thanks all.

-zee

 

[urban cowboy]

you can always try - but the general statement would be NO!!

There is usually plenty of demand for fresh land and unless they are having trouble (or perceive trouble) shifting them, you don't have much chance.

certainly give them a go though - just be aware that land sales people don't always have any authority other than to sign on behalf of the developer - they get told the prices and don't have the power to negotiate. (Not always the case but good to be aware of).

Good luck!

 

[joanmc]

you might get a bulk discount...how many are you buying? I understand some builders do this buy a few and get a discount because they will be putting houses up and making it look more established. always worth a try

 

[craigb]

yes they do! say buy four blocks and save 10%,

 

[gg1965]

I did this. Myself, with some Taiwanese counterparts, bought 3 blocks in a new land release (in Yass NSW) and we got a discount. It wasn't 10% but about 8% per block - even so, it was a tidy sum.

Then use the same builders, electricians and plumbers and you get even a further discount.


Thanks

g

 

[Philip Thomas]

Everything in life is negotiable, even life its self.

 

[Propertunity]

This might seem a stupid question

zee, the only stupid Q is the one that's never asked

Just wondering, can we negotiate the price with the land developer

As the other posters have said - everthing is negotiable BUT it will depend on the time the land release has been on the market. No developer wants early sales of discounted prices because:
1. Existing comparable sales in the same development sets the benchmark by which bank valuers establish value. Once they offer a 10% discount on 2 or 3 blocks - every other block for sale in the estate drops by virtually 10% - not good for developer or earlier purchasers. Not good for new purchasers whose block with not value up to the purchase price - can't get finance.
2. They test the market in the early stages. They don't want to drop the price too early and lose valuable $'s on the rest.
3. Be aware that sometimes because of point 1. above, a developer will "sell" to a related entity for a number of early sales. (This is also done in high-rise developments) to establish a comparable sales benchmark - sneeky and really market manipulation - but it is done.

Having said all that if you are buying the last one or two blocks in an estate you can often get good deals (as the developer just wants to move on to the next development). I have also had a developer remove the covenants he initially created for the whole development on a block we were buying. In this case it was to allow a dual occ. It was the only block that had one because of it.

All the best with your purchase.

 

[zee]

Thanks all for the responses. Seems like I won't get much luck, as I am only after 1 land and it was released just yesterday! But I will try.

What are the things I should be asking about the land? Have only purchased established homes so far. I am clueless about buying land to build on later. How do we arrange the finance for this? Do we just give them the 10% deposit ,and the rest to be arranged when the title is ready?

The title will be ready in December. What happens if the value of the land decreases by that time? Yay! Does this happen? Please help! I am in panic as my hubby just gave the check for the deposit and went to work! He doesn't know much about buying land either. I think I better calm down, this is for a ppor and i am getting emotional.

-zee