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A Guide to Buying a New-Build

 
13/03/2020

Buying a new home is a huge responsibility and a big decision, so we are here to offer you some expert advice to make the process that bit easier. As experienced professionals in the property market, we know that there are many factors to consider before taking the plunge and signing the contract for your new home. One of the first decisions you must make is whether to buy new or old.

 

In this blog, we look at the reasons why you might want to consider buying a brand-new build as opposed to a pre-owned home and provide a guide to buying a brand new property.

 

What is a New-Build Property?

 

A property that is brand new and has never been lived in is referred to as a new-build. Some houses may still be referred to as a new-build even if it has had someone living in it, simply because it was built recently, but the owner moved out quickly. In this blog, we will be discussing properties that have never been lived in before.

 

The Housing Market Needs New-Builds

 

The housing market is in desperate need of new homes in order to keep up with the ever-growing demand for housing. The government stated that 300,000 homes would be built each year by the mid-2020s; however, so far, this hasn’t happened. In the year of 2016-2017, only 184,000 new homes were built in England.

 

In addition to this, according to the National Housing Federation, it is estimated that around 8.4 million people in England are living in either unaffordable, insecure or unsuitable homes.

 

Why You Should Buy A New-Build Home

 

So why should you buy a new-build as opposed to pre-owned? Well, there are numerous benefits to owning a brand-new house.

 

Less Maintenance

 

One of the primary benefits of buying a new-build property is that it should, in theory, require far less maintenance when compared to an older home.

 

Cheaper Energy Bills

 

New-builds are more insulated than older homes; therefore, the energy bills will be cheaper.

 

You Could Get Involved in the Design Process 

 

If you are buying off-plan, which means buying it before it is actually built, you may be able to get involved in the design process. For example, you may be able to choose different kitchen cupboards, floorboards or door handles.

 

Blank Canvas

 

When buying a new-build, you will most likely be faced with a mostly white home, which means you are given a blank canvas. It is easy to put your stamp on the property and make it your own as the décor is often very simple with new-builds.

 

The Process of Buying a New-Build

 

1. Sort Out Your Finances

 

It is recommended that you seek advice from a mortgage advisor to understand how much you can afford to borrow. They can help you to grasp exactly how much is feasible and therefore, benefit you in the long run with mortgage repayments.

 

2. Find Your Home

 

Next, you will need to find a new housing development in an area you wish to live in. Ensure you do your research on the local area to avoid any disappointment in the future.

 

Once you have a clear understanding of which development you would like to go with, it is best to visit and take a look around a few different models, so that you can get a feel for sizing and quality.

 

3. Put in An Offer and Pay a Fee

 

Once you find the home you want, and you feel confident that you can afford the mortgage repayments, then its time to put in an offer! If your offer is accepted, then you will be required to pay a reservation fee to secure it. The charge usually ranges from about £500 to £1,000 and is often deducted from the purchase price.

 

4. Start Working Through the Legal and Financial Processes

 

To make your way through legal processes, it is highly recommended that you appoint a conveyancer or solicitor. It could be useful to find one that is specialised or has plenty of experience in new-builds. They will also help with negotiations on a number of things such as the date you get your keys.

 

Can You Negotiate with New-Build Prices?

 

When new housing developments are in the construction process, you will often see a lot of advertisements and these will usually feature prices. While they suggest this is what you have to pay, this is only the asking price, and it can be negotiated.

 

What Are the Chances That I Will Be Successful with A Lower Offer?

 

The likelihood of your lower offer being successful will depend on a few factors:

 

What is the Level of Demand?

 

If there is a low level of demand, it is likely they will waver on the asking price. On the other hand, if there is high demand, they will try to keep the properties at the asking price because they are confident that people will purchase them.

 

How Far Along is the Development?

 

If the development is in the early stages, they will likely be more unwilling to adjust the asking price in case other potential buyers come along who will pay the full price. Alternatively, if the development is nearing the end of completion and not many properties have sold, they might be more willing to drop the sale price.

 

What is a New-Build Premium?

 

The term “new-build premium” refers to the fact that new-build homes are generally more expensive than old properties while appearing very similar. The reason for this is because new-builds will be more energy-efficient and be built to a higher spec.

 

We hope that you have found this blog informative. Should you have any further questions, feel free to give us a call on 01837 54504 or visit our contact page. Here at Godfrey, Short and Squire, we are estate agents in Okehampton, and we offer home for both sale and rent in West Devon.

 

You might also be interested in:

Why You Should Use an Estate Agent

 

First Time Buyers: A Guide to Bills

 

 
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