Guide to New Homes and Buying Off-Plan

Mon 21 Aug 2017


Guide to new homes and buying off-plan

Buying a new build or an off-plan property has gained popularity over the past few years. If you’re not familiar with the term, an off-plan home is one that is purchased having seen the architect’s plan and developer’s specifications for the property before it is actually built. The Guild of Property Professionals has compiled a useful list of considerations that should be take into account when purchasing a new build of off-plan property.

Advantages

Personal touches

Whether it’s family or work commitments, finding time to redecorate or refurbish is often easier said than done. When it comes to new-build or off-plan properties you can often decide the specifications so when you move into your home, it’s already how you would like it. No need to spend time putting your stamp on a second-hand home.

Pay lower fees

Buying off-plan is likely to be slightly cheaper than buying a completed new build property as developers often inflate the price of a property once it is completed. Getting in before this happens provide’s a cheaper alternative to the new-build option – just be mindful that homes take time to build so you need to be prepared for a bit of a wait before you can move in.

NHBC Guarantee

The mian benefit you gain with a new-build property is the warranty. Buildmark provides 10 years of warrants and insurance protection to newly-built or converted homes. This protection not only increases your financial security, but also gives you valuable peace-of-mind.

Disadvantages

Hard to visualise

Not being able to experience your property first-hand before purchasing is the down-side to off-plan homes.

If you are unsure what you want, or are having trouble visualising the final outcome, you may become disappointed upon completion.

Uncertain timescale

If you are in a chain an off-plan home can provide difficulties. You will need a patient buyer prepared to wait for your house to be finished. With larger housebuilders there will be no completion date, so having flexible circumstances is a must.

Extra fees

This goes with all aspects of the property market, but make sure you fully understand all the fees. For example, some new-builds don’t include the price of flooring, so make sure the fearures which you consider part and parcel of the completed home are included in the final agreement before signing.

Top tips

Be wary of sums up front

Be wary of being asked to pay large sums up front. Most developers request a reservation fee and a 10% deposit on exchange. If you are asked to part with large sums of money prior to completion, check the situation carefully and make sure you are protected.

Future building plans

New developments can spring up quickly. Make sure you understand what the developers see as the potential for your area, and think about how this will impact the future of your property.

Research builders and developers

Do your research on the development and builders. Make sure the builder is reputable – preferably visit their other completed sites to gauge their service and standard. Asking questions and getting the full picture goes a long way in preventing disappointment.

To read the full article please visit the Guild of Professional Estate Agents website here.