When it comes to buying a new build home, there are a few things you need to know. In this article, we’ll go over the most important ones to help you make an informed decision.
New build flats and homes tend to be a lot more energy efficient than older properties. This means that they should cost less to heat and cool. But, again, this isn’t always the case – so it’s worth doing your research.
One of the biggest benefits of buying a new build home is that everything should be brand new. This means that you won’t have to worry about things like old wiring or damp. However, it’s always worth getting a professional opinion on any property – new or old – before you buy it.
A new build property can be a great option for families, first-time buyers, and anyone looking for a fresh start.
New builds appeal to first time buyers because they are chain free, removing some of the aggravation of property chains. In the same way, first-time buyers typically like new builds because the developers sometimes help with things like Stamp Duty and the 5% builder deposits. Most new homes will have fridges and ovens installed, saving buyers a lot of money.
There’s a good choices of lenders offering new build mortgages so you should have plenty of options.
Buying a new build property is also very exciting, as you are the first person to live in the home. This can be a great feeling for many people and it also comes with certain perks, such as getting to choose your own fixtures and fittings.
The Benefits of Buying New Build
New build homes are appealing to home buyers for a number of reasons.
Some of the advantages include:
- When you buy a brand-new home, you’ll be the very first person to live in it. This can be an exciting prospect for some people as it gives them the opportunity to put their own stamp on the property from day one
- New build properties are also often built to a high specification with the latest technology and energy-efficient features. This can make them more environmentally friendly to live in and cheaper to run, you may also qualify for a green mortgage.
- Buyers are able to choose the fixtures and fittings they want before the property is built. This means that they can tailor the home to their own taste and style.
- Another advantage of buying new build is that the process is often less stressful than buying an older property. This is because buyers only have to deal with one company – the developer – rather than multiple people in a chain.
- Any repairs or maintenance issues that arise will be the responsibility of the developer to fix during the first two years after you move in. This gives you peace of mind and takes away any worry about unexpected repair bills.
- New build properties commonly come with a 10-year warranty. This protects you against any structural defects that may occur and gives you extra peace of mind.
Things You Need to Know When Buying a New Build Home
As a buyer, here are some things to consider if you’re planning on buying a new build home:
Haggle on Price
When you put an offer on a new build property, the developer will usually have a starting price in mind. However, it’s important to remember that this isn’t set in stone and there is usually some room for negotiation.
If you do want to try and negotiate on price, it’s important to be aware of the current market conditions. Doing your research beforehand will give you a good idea of how much the property is really worth and whether the asking price is realistic.
It can also be helpful to get a mortgage agreement in principle before you start negotiating. This will show the developer that you’re serious about buying the property and you’re in a good position to do so.
Get to Know the Developers
When you’re buying a new build property, it’s important to get to know the developers. This is because they will be responsible for building your home and ensuring that it meets all the necessary standards.
As part of your research, try to find out as much as you can about the developers. Look at their previous projects, the different types of houses they have built and see if they have a good track record. It’s also a good idea to read online reviews to see what other people’s experiences have been like.
If possible, try to meet with the developers in person so that you can get a better idea of who they are and what their plans are for the project.
Ask the neighbours
If you’re buying a new build property that’s part of a larger development, it can be helpful to speak to the neighbours that have moved in. They will be able to give you an idea of what it’s like living in the area and whether there have been any problems with the development.
It’s also worth bearing in mind that the neighbours may be able to give you some useful insights into the developers. If they’ve had a good experience, then it’s likely that you will too. However, if they’ve had problems, it’s worth doing your own research to see if these are isolated incidents or if there is a pattern.
Visit the Developer’s Other Sites
If the developers are working on other projects, it’s worth visiting these sites to see how they are progressing. This will give you a good idea of the company’s workmanship and whether they are likely to meet their deadlines.
It’s also worth asking the developers for a tour of the site so that you can see the property being built. This will give you a better idea of the quality of the workmanship and whether the end result is likely to meet your expectations.
Don’t Rely on Promotional Material
When you’re buying a new build property, it’s important to remember that the developers will want to sell you the property. As such, they may use marketing tactics that are designed to make the property look more appealing than it really is.
It’s important to be aware of this and to take any promotional material with a pinch of salt. If possible, try to get an independent assessment of the property so that you can be sure that it meets your needs.
Exploring the local area a few times, at different times of the day, can also be helpful. This will give you a better idea of what the area is really like and whether it’s somewhere that you could see yourself living in the long-term.
Beyond the Show Home
When you’re buying a new build property, it can be tempting to only look at the show home. However, it’s important to remember that this is designed to sell you the property and may not be representative of the finished product.
If possible, try to get a tour of the site so that you can see how the property is being built. This will give you a better idea of the quality of the workmanship and whether the end result is likely to meet your expectations.
It’s also worth asking for a copy of the floor plans so that you can get an idea of the layout of the property. This is especially important if you have specific needs or requirements.
Builders will use professional interior designers to decorate properties, spending hundreds, if not thousands on furniture. This is all designed to make the property look as appealing as possible and may not be representative of what the finished product will look like.
What Other Units Have Been Sold
If you’re buying a new build property that’s part of a larger development, it can be helpful to find out how many other units have been sold. This will give you an idea of the demand for the property and whether the developers are likely to meet their targets.
It’s also worth asking about the mix of buyers. If the majority of buyers are investors, there’s a risk that the development could become a ghost town if the market slows down.
Find Out Exactly What You’re Getting
It’s important to make sure that you know exactly what you’re getting when you buy a new build property. In particular, you should find out what fixtures and fittings are included in the price.
Some developers may try to charge extra for things like flooring or light fittings. Others may include these as standard, but it’s important to check so that you know what to expect.
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 carpets and floorings, white goods or a parking space? 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?
See What Extras You Can Get
When you’re buying a new build property, it’s worth seeing what extras you can get as part of the deal.
For example, some developers may be willing to include flooring or white goods as part of the price. Others may offer discounts if you buy multiple units.
If you’re early you might even have the opportunity to choose upgraded appliances, different flooring and colours.
CONTACT A MORTGAGE BROKER
If you are ready to take the next step then we can put you in touch with a fully qualified independent mortgage broker.
Pay For a Snagging Survey
Once you’ve exchanged contracts, it’s a good idea to conduct a snagging survey at the point when the building works have finished. This is a professional inspection of the property that’s designed to identify any defects or problems.
The survey picks up things like plastering, tiling, woodwork and external brickwork. The developer should rectify any issues that are identified, but it’s important to do this as soon as possible.
Any problems that have been picked up should be given to the builder in writing and then put right before your completion date arrives and you move in.
Do you need a survey to get a mortgage?
Who organises a survey when buying a house?
Warranty
When you buy a new build property, it will usually come with a warranty. This is designed to protect you in the event that there are any problems with the property.
The most common warranty is the National House Building Council (NHBC) Buildmark cover. This provides a ten year warranty:
Years 0-2 – Your builder will provide an initial warranty and agrees to repair defects that do not comply with NHBC’s Technical Requirements. This would not include wear and tear or maintenance issues.
Years 3-10 – After the builder warranty ends, NHBC provides insurance cover (usually for a period of 8 years) until the expiry of the policy.
Delays
One of the biggest risks when buying a new build property is that the project will be delayed. This can have a number of consequences, including:
- You may not be able to move in on the date that was agreed. This could cause problems if you’re selling your old property or have to move out of rented accommodation.
- The value of the property could drop if the market slows down while you’re waiting for it to be completed.
- Most mortgage offers will have an expiry date and any setbacks could mean your offer may expire before you complete the purchase
- You may incur additional costs, such as storage fees or mortgage payments on your old property.
If you’re buying a new build property, it’s important to be prepared for the possibility of delays. You should make sure that you have a contingency plan in place in case you’re not able to move in on the agreed date.
Keep your mortgage broker in the loop and ask if the provider being recommended has a process in place for extending a mortgage offer.
For more information on new build mortgages or to speak with an expert if you’re thinking of buying a new build property, please call 0330 030 5050 or submit an enquiry here.
