Some people are vehemently against buying an old home, opting for a newly built property instead.
Usually, new builds seem more appealing to homebuyers for the following reasons:
- A lot of people prefer being the first occupants in their homes with no previous owners.
- Usually, new build homes come with guarantees and insurance, offering their owners some peace of mind.
- Since everything is new, you don’t need to do much repair work during the first years.
- Homebuyers can often decide what fixtures and fittings they’d like to have as developers usually provide a few options to choose from.
- New build properties, when built to the correct standard, come with lower running costs and energy bills.
However, like with everything else, there are some risks that you should be aware of. To find out how to prevent them from happening, keep on reading.
- Do your research: Gather as much information as possible about the developers in the area where you’d like to buy a home. Research them online and look through their customers’ reviews as well as the latest news and articles involving them. You can use that information to ask the right questions later.
- Visit the development: Don’t put all of your trust in online reviews. Instead, go to the site and see the progress for yourself. You can check how the construction is going and what facilities and amenities are in the area. If the development has been partially completed, you can talk to those who have already moved in and ask them about the buying process.
- Visit other projects: Check the construction quality and what the residents have to say about their properties and the developer.
- Refrain from using the developer’s conveyancing solicitor: Be aware that the developer’s conveyancing solicitor may not have your best interests at heart. You’ll feel better if there is an independent specialist who will less likely bend under pressure from the developer.
- Compare: The first step as always is researching. Find some information about the local properties, similar to the one you’re planning on buying, and compare the price per square foot to find out the extent of the premium you’ll be paying. There are plenty of websites that provide such information. For instance, you can search for new build homes on Korter UK and find all the necessary details for your analysis.
- Find the right moment: The developer may offer some discounts at the end of their financial year or when trying to sell the last few properties left.
- Incentives: To make their offers seem more appealing, developers can include some incentives, including free furnishings, a car parking space, price protection, or stamp duty exemption. Perhaps, such offers don’t cover much but they can make your life a bit easier.
- Adding value: Don’t forget that you can always add some value later. Think about what you can do to make the property more attractive in the future. For instance, check if there is a space for a landscaped garden or an extension.
One of the most popular complaints from buyers of off-plan properties is having to wait longer because of constant delays. Make sure that there is a long stop date in your contract. That way, the developer will be obligated to pay you compensation if the development isn’t completed by the agreed-upon date.
When purchasing a new build property, another popular concern is that you won’t get what you expect. Don’t forget to carefully inspect the plans and specifications of the final result, including designs, measurements, materials, and finishes.
If you are purchasing a leasehold property, make sure to carefully go through the terms of the lease. There may be a number of restrictions and additional costs that you must be aware of.
Warranties are one of the perks of having a new build home. However, it’s important to read the small print as sometimes insurers may use it to avoid paying for or carrying out remedial work.
There should be a “snagging” clause in your contract, ensuring that all minor defects must be corrected by the developer in case you find any during the first two years from the completion of your home.
As with everything else, there are pros and cons when it comes to purchasing a new build property. It’s important to be aware of both and not get overly fixated on either. Risks come with everything we do. Therefore, it’s better to be ready and know exactly how to deal with them.