Main points to know before buying a new build home

Despite the global pandemic, there is no shortage of new build homes for sale as the housebuilding industry has remained resilient against the recent challenges.

If you are planning on buying a new build property, there are a few things to be aware of before making a purchase.

Finding the right home

First, you need to find the right property. Nowadays, there is a wide range of online platforms that can help you choose your future home based on your needs and preferences. Apart from detailed information on new build developments, such websites offer convenient search tools and useful descriptions.

There is a plethora of aspects and details you need to take into account when choosing your future home. However, when looking for a new build property, there is one thing that you should inspect closely – its developer.

All property development companies operate in different ways, and the results may vary greatly depending on what developer you’ve chosen. A well-known name is not a guarantee of good quality as even the biggest property development companies may underperform from time to time.

How do you make sure that the developer is reliable then?

• Check the company’s track record: Visit the previous developments and talk to the residents.
• Search online: Look for any reviews from their customers and news mentions.
• Visit the site: The developer may promise you an abundance of greenery, amenities, facilities, and transport links, but nothing is better than seeing it for yourself. Make sure that the neighbourhood is to your liking.

Buying off-plan

Furthermore, if you’re thinking about purchasing an off-plan property, choosing the right developer is even more crucial for you as you’re investing in real estate that hasn’t been built yet. Such a purchase comes with more risks since you will have to base your choice on the information from a brochure or a show home.

However, buying off-plan comes with some perks too. You may be able to secure a sought-after plot at a below-market price. Once you move in, you might find that your property has increased in value.

Here are some tips if you are planning on buying an off-plan property:

1. Get a clear understanding of the final product.

Usually, potential buyers are presented with marketing materials and show homes that are meant to give them an idea of what they will get in the end. However, bear in mind that these only provide ideal images of the final product. You might get a unit in another part of the development with different views and finishes.

Therefore, instead of marketing brochures made for advertising purposes, you should examine detailed specifications that clarify what materials, fixtures, and fittings your future home will feature. Using this information, you can then compare it to the final result and file a complaint if needed.

1. Know exactly what you pay for.

To attract more customers, some developers offer money-saving incentives, such as free furniture or a car parking space. It’s important to know what’s included in the price as some financial incentives may have an impact on the size of the mortgage loan you will be offered.

1. Familiarise yourself with the developer’s schedule.

Off-plan properties are notorious for delays so make sure to keep in mind the following dates:

• Short-stop date: when the developer expects to have finished the project.
• Long-stop date: when the developer must have finished it. If the developer fails to complete its work by that date, you will receive compensation.

Mortgage

If you don’t have enough funds to pay for the property right away, it’s important to have a valid mortgage offer before exchanging contracts.

If you feel at a loss, it might be a good idea to consult a mortgage adviser. Apart from helping you with your mortgage, they will be able to tell you if there are any government schemes, such as Help to Buy, you are eligible for.

Reservation

You can usually reserve a property for a 28-day period by paying a fee, which ranges from £500 to £2,000. Within that period, you will need to exchange contracts with the developer to complete the purchase. Once it’s done, the developer will deduct the amount from the final price.

However, if you fail to exchange contracts during the reservation period, you are not entitled to the return of your reservation fee.

It’s vital to receive a written reservation agreement from the developer after paying a fee to avoid any misunderstandings.