From the benefits to the potential pitfalls, we’ll take you through everything you need to know about buying a new build. As well as some quick new build mortgage tips to make your life a little easier.
There are multiple good reasons for buying a new build home. They are a popular choice for first-time buyers, growing families or for those looking to downsize to a smaller property.
The appeal of new builds to a lot of first-time buyers is because they’re chain free, removing some of the worry of your dream home falling through. Similarly, first-time buyers typically like new builds because the developers sometimes help with things like Stamp Duty and the 5% builder deposits. Also, developers tend to put things like fridges and ovens into properties, saving buyers a lot of money.
Buying a new build property can also be very exciting, and a practical way to create a readymade home without any need for renovation or decoration. However, before you jump into anything, it’s great to be aware of the pros and cons.
The benefits of buying a new build
New build homes are appealing to home buyers for a number of reasons. Some of the advantages include:
- Many people love that they will be the first person to live in the property
- Commonly, buyers are able to select the fixtures and fittings that they want in their home and can tailor to their individual taste and potentially their desired layout
- Any repairs or redecoration should be minimal within the first few years
- If the property is built to the correct standard, the running costs and energy bills are likely to be a lot cheaper
- New build properties commonly come with additional guarantees and new home warranties
Things you need to know when buying a new build
As a buyer, there are things you’ll need to be aware of. Here are some things to consider if you’re planning on buying a new build:
Negotiate on Price
When you put an offer on a new build property, it may be the case that the property hasn’t been built yet – this is known as buying off-plan. Generally, the earlier you express interest, the better deal you’ll get and the more choice of properties you’ll have. Whatever stage of the development, it’s recommended that you do you research regarding similar properties in the area. Once you’ve done your research you can look to negotiate your price, as not all sale prices are set in stone.
Get to know the developers
It’s beneficial to do a bit of research on the developers in your area, and neighbouring areas. Look online and see what past and present customers are saying about them. It’s important not to let any negative comments put you off completely. Instead use them to inform you on any problems that may come up. For example – look to see what people say about how quickly problems have been resolved. As well as how many people mention this – is it one owner or many?
It may be also be useful to visit one of the developer’s other sites. This will give you the opportunity to be able to see what they look like. You might also have the chance to talk to residents and get their opinions on their homes and the developer.
Communicate
If you’re showing interest on a development that has already been partially completed, this can work to your advantage. Why not ask potential future neighbours how they found the process of buying and whether they have any advice.
Find out how many other units have been sold there
If you are the first person to buy a property on site, it’s good to be aware that you then may be surrounded by a building site for the next 12 months or so. It’s handy to find out how much of the development has been sold and who to. You can also ask about the ratio of owner-occupiers to investors.
Don’t solely rely on marketing material
Remember that marketing is designed to show off how wonderful everything is – or will be – and won’t highlight any negative points. It’s important that you get a feel for what you’re buying by actually visiting the site and the local area. Take time to explore the local area a few times, at both daytime and night-time. This will give you a strong idea of what life would be like living there. Local facilities, schools and transport links can also be good things to investigate before moving to a new area.
Look beyond the show home
Developers build show homes to use as a selling tool. They’ll often use professional interior designers to decorate properties, spending hundreds, if not thousands on furniture. It’s beneficial to imagine your own furniture in the property. Try to only use the show home as a rough indication on what you’re buying. Your home could be a different size or floor plan to the show home. Also, keep in mind that the show home will only have specially chosen modern furniture with no personal touches or normal clutter. This is a tack tick to make them appear as spacious as possible.
Find out exactly what you’re getting
The nature of buying off plan, usually means there’s nothing to see yet. So it’s even more important to know exactly what you’re getting for your money. Does the price include floorings, white goods or parking spaces? If you’re buying within an apartment block, what are the annual service charges, what is the ground rent and who is responsible for what? Remember, no question is a silly question – get to know every detail of what you’re getting.
Are there any extras you can get?
Many developers offer extras and incentives, such as free furnishings, parking spaces or by paying your stamp duty. If you can get any extras thrown in, even if it just ends up being plug sockets or white goods, it’s a good opportunity to save some money. If you’re an early buyer you might even have the opportunity to choose flooring or colours etc.
Conduct a snagging survey
A snagging survey is designed to check for any problems with a new build home. At some point between exchange and completion, you’ll need to conduct a snagging survey to make sure everything’s fixed, perfect and ready for your moving day.
The survey picks up things like plastering, tiling, skirting and external brickwork. Remember that not everything will necessarily get picked up in the snagging survey. It’s important to make sure the right assurances are in place, should the property still need work.
Delays
Buying a new build can throw up issues if the construction of your home is delayed and completion or move in dates are pushed back. This can be problematic as most mortgage offers will have an expiry date. Any significant setbacks could mean your mortgage offer may expire before you complete the purchase. It’s important to check your contract before committing to the property, as there should be guidelines regarding when you can withdraw without losing any money. Most lenders often appreciate that these things can happen, so you should ask your mortgage adviser if the provider being recommended has a process in place for extending a mortgage offer.
For more information on new build mortgages, please call 01634 968111 or submit an enquiry here.
