Guide to buying a new home
Buying a new home is much easier than buying older properties. You can make it even easier by planning ahead and following these simple steps.
- Location - Consider where you want to live and if you want to stay in the location you are currently living in. If you're happy to relocate, think about which areas will best suit your needs.
- Budget - Work out how much you want to spend on buying a new home. This will help you limit your search to properties that you can afford. Remember to factor in additional costs such as solicitor fees, stamp duty, surveyor's fee, land registry fee, removal costs, the cost of furniture and maintenance costs.
- Your Requirements - You might find it helpful to make a list of what you want from your prospective new home. Decide how many bedrooms you want, consider whether you want a house or apartment, and whether you would like to be near local amenities or transport links.
- Mortgages - Meet with a mortgage adviser or independent financial adviser and discuss how much money you can put down as a deposit and what you need to borrow. This way you can determine what you can afford before you start searching for a new home. Decide what type of mortgage best suits your needs - this could be variable rate or fixed rate; interest-only or repayment for example. It may be worth getting a pre-approved mortgage which cuts out much of the hassle when you come to putting an offer on a new property that you like.
- Viewing - Contact the developers of the properties that you like to discuss the project further or to make an appointment to view. Ask as many questions as you feel necessary. The sales staff will be happy to help. Ask about any additional extras, such as fitted carpets and extra power points, that your developer may offer.
- Area & Amenities - Once you have found a property you like, it is a good idea to check out the area around, particularly if you are relocating. Consider transport links and locate the nearest stores, petrol station, schools etc. Find out how much Council Tax, electricity and water cost on average, and whether there are any maintenance fees to pay.
- Agree Terms - Developers will have carefully considered the price of each new home, taking into account the home itself, the entire development and its facilities, and the location of the property. However, there may be some room for negotiation. Some developers offer extra services and features, such as fitted carpets. These may affect the price. When you make an offer, this is subject to contract and the results of the survey.
- Conveyance & Solicitor - Once a sale is agreed, you need to find a company that specialises in conveyancing. Personal recommendations are a good place to start. The Law Society also has an online directory of local specialists. Agree a cost with your chosen solicitor beforehand. They will need details of the property and the developers and maybe details of your mortgage lender.
- Surveyor - Personal recommendations are the best way to find a good surveyor - ask friends, family and colleagues. The Royal Institution of Chartered Surveyors RICS can also provide you with a list of qualified surveyors in the area. Agree a cost with your chosen surveyor beforehand. Costs can vary because they depend on the size and location of the property and the type of survey you commission - which could be a valuation report, a homebuyer's report, or a full structural survey.
- Exchange Contract - Once your mortgage is approved and the price is agreed, read and sign the contract prepared by your solicitor. Exchange contracts with the seller, and you will have a new home. Your developer will give you an estimate of when your house will be ready for you to move in.
- Move In - Finalise a date to move in. Decide whether you want to move yourself or hire a removal company to help you. Redirect mail ahead of time and inform your utility providers, local authorities, your banks and credit card and insurance companies of your move.