The purchase of a new-build home is a very exciting experience, with its fresh paint, untouched recesses and flawlessly operating plumbing. Still, new-builds are not immune to challenges and traps. We at Sweet Home Estates have gathered some tips on what you must do when planning to purchase a brand-new property.
1. Haggle Over the Price
Let’s begin with the most crucial part: the price. There are ways to get a better price for a newly built property, and one of them is the “buying off” plan.
This term describes the purchase of a new-build before construction is complete – and, in some cases, before its foundation is even laid. The key here is to determine what price would be reasonable for a house that is not there yet.
Usually, the sooner you spot a construction project, the lower price you get. Still, bear in mind that there are other people interested and looking out there -and their number and degree of interest will certainly have an impact on the property’s price. Equally important is the region’s fame and general characteristics, surrounding landscape, real estate history and investment interest, etc.
So, what you must not do is just ask for a price and go along with it. Haggle over it, negotiate – but do it properly, if you want it to have a “happy ending” for you. That means, prepare before discussing the subject. Check the construction company’s history of pricing in the area, check the prices of old and recently built houses. Learn as much as possible for the local real estate market, find a Real Estate Agency that can help you get an insight on things that could be easily overlooked – Sweet Home Estates will be happy to offer a hand.
Ah, and something else: Assuming a house under construction will be worth more when it is ready is simply wrong.
2. Ascertain What you Will Get
Assuming you eventually decide to buy off property, you obviously face a predicament: most things are no even there yet.
Consequently, it would be wise to ascertain in full detail what exactly will you buy. For instance, is the garden turf included in the price? The parking space or the BBQ? The cast-iron gate on the front? You should say ask whether there are annual service charges and ground rents involved in what you are purchasing?
The acquisition of a house is not a time of being shy. Ask what extras you can include in the price – anything, from plug sockets to flooring.
3. Look Behind the “Show Home” Curtain
Usually, property developers build show homes, used as a selling tool to convince the buyer about the building’s overall quality and looks. Still, you must remember that this is a little more than a specimen – is not what you will get. Yours will probably be in another plot, floor or building, which means that aspects such as the light, noise, and neighbors might be very different.
Bear also in mind that show homes are usually furniture with the basics and may seem much roomier than they are.
4. Learn about Previous Buyers
Don’t be shy to ask whether other units have been sold and if they have, ask for their names. It would be nice to check the owners/residents to investors ratio, because some people may prefer permanent neighbors instead of transient renters.
5. Check Whether the Constructor is Signed Up to a Warranty Scheme
That’s of vital importance: make sure the construction company is signed up to a warranty scheme. If it doesn’t DO NOT go any further.
Warranty schemes protect the buyers in cases when the builder goes bankrupt and guarantees that the construction is in accord with specific and agreed standards. It also provides a third-party resolution service in case of a serious disagreement.
If there is warranty scheme, but you feel uncomfortable because you don’t understand the terms and obligations, DO NOT trust your instinct. Ask us to cross-reference the deal and explain to you what exactly this warranty scheme has to offer.
6. Check for “Snagging.”
“Snagging” is a term used in Real Estate to describe issues and problems that often arise in newly constructed buildings, such as cracks in settling walls, problematic plumbing or poor guttering. Hence it is essential, sometime between exchange and completion, to check the building and its systems for malfunctions thoroughly and demand them to be fixed before taking the keys.
If you feel you don’t have the experience and expertise to conduct this survey by yourself, we can handle it for you.
Buying a house is a serious step in your life. We can make sure you take it the right way.Back to News