Although buying a house is exciting for most people, it is also one of the largest, most expensive decisions that they will ever make in their lifetime. There are so many important factors to consider, and this can be extremely daunting for some people, especially for those purchasing a home for the first time. The information contained within this article is to give you, the first-time home buyer, a better understanding of all the important things you need to consider when buying a new-build home.
How do prices differ between an older home and a new-build property?
If you buy an older property, you have the option of putting in an offer that is less than the amount that the owner is asking for. New-build homes on the other hand, are put on the market at a specific price, and this amount is usually non-negotiable.
Developers might, if new houses sell well during the first phase, increase their prices for the second phase. Should sales not go as well as the developer expects them to however, then they might lower the price of the plots, offer reduced stamp duty costs, or even give new-build homebuyers free light fittings or carpets for instance, in order to sell the houses quickly.
Do I have a choice of finishes and materials when I buy a new-build home?
Apart from being able to choose your own plot when buying a new home, there are several other advantages too, such as having the opportunity to choose the following, to suit your particular needs:
- Light Fittings
Although these options vary with each developer, they usually offer some type of service where you can choose certain features to personalise your new-build home. It is a good idea therefore, if you are planning on buying from a specific developer, to find out what options they have available as soon as possible, so that you can make your choices before other potential buyers of new homes in that development.
Are plot sizes for new-build homes and older properties different in any way?
Plot sizes for new-build homes are normally smaller than those of older properties, since the costs of land prices are higher than they were before. In addition to this, less land is available today for new developments.
How does the buying process differ between a new-build home and a resale property?
When you purchase a home in a new development, you are required to put down a deposit, usually 10% of the selling price, and this needs to be paid within 28 days to secure the home you want to buy.
Once you have paid your deposit, you will need to speak to your lawyer about finalising your mortgage, so that the sale can go ahead. The National House Building Council (NHBC) or other similar housing authority will need to sign off the building regulations with the local authority first, after which you have 10 to 14 days to close the sale.
Are there any other factors that I should take into consideration?
As the new owner, remember that you only have a certain amount of time to inform the developer of any construction issues that need to be attended to. It is also very important that you receive a new-build warranty, such as NHBC’s 10-year warranty, when you purchase a new-build home.
Further information is available at http://www.whathouse.com/advice/essential-checks-when-buying-a-new-build-property/