New build properties offer an exciting allure because they are a blank canvas that no one else has ever put their stamp on before. However, new build properties tend to sell for around 10% more than typical homes, meaning that new builds can end up causing you a serious headache. So, rather than taking everything at face value, consider the following before you buy so that you end up with the best deal!
Negotiation is Par for the Course
If you buy a property before it has been built or finished, then the asking price will be up for negotiation. New build developments rely on early buyers to confirm further developments. Offering a lower price or asking for things to be included in your deal could help you afford a better finish than you had imagined.
Take some time to check out local prices or look at other developments and speak to housing experts to get advice before you start negotiations.
Warranty Schemes are Essential
If you are tempted to purchase a new build property without a warranty scheme, then don't! Warranty schemes are the protection you need if the builder is unable to finish the job after you've paid out your deposit.
Warranty schemes also provide assurances that your new home will be built to a specific standard and can even provide dispute resolution if you have any issues that need to be worked out.
If You Don’t Ask, You Don’t Get
One of the best parts of buying brand new is that you can often have a say in the way the interior of your house is finished. Tiling, cabinetry, flooring and colour schemes are all possibilities, but you will need to speak to the builder or development lead to get your requirements met.
If you are buying early on in the development, you will have more say over décor, and you may even manage to get additional items added in free!
Mortgage Offers Have a Shelf Life
Remember that mortgage offers tend to come with a shelf life of between 3 – 6 months, meaning that you may need to reapply if your home isn't completed in time. This may sound like a paperwork issue, but there is always a possibility that you may be refused the second time you apply, making it important to get your timings right and keep on top of the progress of your new house.
If you think that you may need to reapply, it is important to avoid changing jobs or taking out lots of credit as this can reduce your chances of getting a new offer.
Check Everything Before You Move In
Finally, when a house is finished, it will need time to settle, and you may find that minor issues appear. This is normal and can be fully rectified via the snagging process, where you complete a survey of everything that needs to be addressed for the builder to resolve.
There are lots of online surveys you can print off for this job, or you can employ a snagging specialist to come and do the checks on your behalf.
New build companies may tell you, you need to use their conveyancers, however this is not the case, you are free to use your own. For the best quotes for your conveyancing needs, you can use our free tool here.