What you need to check before buying a new build property
Buying a new build home can catch out unsuspecting buyers. Here are the key points you need to check before buying a new build property.
The price isn't set in stone
Many people don't realise that the asking price for new build property is usually negotiable. You would think about making a lower offer on any other home, so why not on a new build? Off plan doesn't mean that you cannot negotiate. You may get a great deal if you negotiate hard, so don't be afraid to ask the question – you never know what the answer may be.
Find out what is included in the sale
Developers want to shift stock as quickly as possible. As soon as a site is sold up, the developer can move their team away and start it all again. They will sometimes even include some pretty attractive incentives, such as –
- Paying yout stamp duty
- Offering floor covering upgrades
- Payying your legal fees
- Fitting white goods for you
Always ask what is included. Negotiation doesn't always have to be about price. Think about asking for some of the other things that will make your life easier in a new home.
The show home may differ considerable from the one home you ultimately buy
Show homes are there to do one thing and one thing only – encourage you to buy. The developer will have spent a lot of money on thne show home interior and will have employed professional designers. The show home may differ considerabvly in siza and layour from the one you end up buying.
Think about how you will make your own mark on the home that you will be buying. Get a good idea of where your plot will be and how different it could be to the pristine show home. Think about the noise and light levels in particular.
Ask if there is a warranty
Most new homes have a warranty that lasts for ten to fifteen years – but not all builders are signed up to these. Ask the developer if the include a warranty because you don't want to foot the bill if a problem occurs after you move in.
On top of this, a new build home without a warranty can be worth a lot less on the second-hand market if you decide to sell over the next few years.
Protect yourself by buying a new home with a warranty.
Think about your finances
You may already have a mortgage offer on the table. Savvy buyers will make this one of the first things they resolve. But your mortgage offer only lasts for a set period of time - usually 90 days.
If your circumstances change significantly during this period, then your existing offer might be withdrawn. It is adviseable not to make any significant life changes during this period, such as:
- Getting into further debt
- Changing your job
- Spend some of your deposit
If your financial situation alters then your lender will probably want to reassess your application.
Get a fix on the time it will be ready
Builders are notorious for not finishing their work on time. If, for example, the developer tells you the property will be ready in 8 weeks, question them on how realistic that timescale is.
There are always delays of one sort or another with a building project, but the more accurate the predicted date is, the better prepared you will be.
Ask how many more homes there are to be built
One of the issues with living in a new home whilst the site is still being developed is the noise, muck and ongoing disruption. If the builder is nearly finished, then obviously the interruption to your life will be less then if you are the first to move in.
Ask the builder how many months they have left on site and decide if this is something you can live with. If it's a problem then look for a plot that is away from the ongoing work.
Don't leave the snagging list hanging
When you move in, the builder may have a list of outstanding jobs left to complete – this is called the snagging list. Unless you stay on top of the developer, the list of snags may not be prioritised.
Ask a conveyancing expert
If you have any questions about getting a conveyancing quote or any aspect of the conveyancing process, let us know: