Taking a step on the property ladder is a momentous milestone.
But before you get your hands on the keys and post the obligatory #NewHome picture on Instagram, there’s some red tape to attend to. While there are plenty of advantages to getting a new build home, making sure you have all the relevant information is a must.
The more questions you ask early on in the process, the better informed you will be to make the right decision. So, what do you need to know before you choose your dream home? Let’s take a look at the top questions to ask when buying a new build house.
1. When do you expect the build to be completed?
Timing is everything. If you’re in a chain, a delayed build time could mess everything up. You may have a buyer waiting to move into your existing home but you don’t have anywhere to move to! Some people end up having to rent temporarily or move in with relatives. Some end up paying for their belongings to be held in storage while they wait for the project to be completed.
For that reason, you need to be clear on when the developers expect the build to be completed. They’ll usually give you a two-month window, but this completion date can easily be pushed back.
You may want to get this estimate in writing. Having an email chain of correspondence means that you will have evidence of the timeframe you’ve been given.
The Home Owners’ Alliance (HOA) recommends getting the builder to agree a ‘long stop’ completion date. A long stop completion date is an agreed date that the property must be completed by. If the property is not complete by the long stop date, you’re usually entitled to end the contract and receive your deposit back. Of course, if you’ve waited a long time for this property and you’ve got your heart set on it, you might not want to do that! If this is true for you, you could fight for compensation.
2. Are you offering any discounts on new build properties?
Getting in early with developers is a savvy way to save yourself some money in the long-run. When you’re considering these types of properties, don’t be afraid to ask for a discount. While house prices in the United Kingdom rose significantly during the pandemic, haggling is still commonplace when it comes to the property market.
You can also haggle with fixtures and fittings. Most developers will give you a choice of counter tops, flooring and tiles. They’ll usually let you choose between a handful of options that won’t cost you a penny while also giving you a chance to upgrade to fancier decor at a price. If you’re feeling cheeky, ask if they can throw in some of the posher fixtures and fittings at no extra cost.
3. Is the property freehold or leasehold?
Buying an apartment or flat? Freehold properties of this type tend to be rare. These buildings tend to be leasehold, which means that you lease the land from the landowner.
When it comes to new build homes, the lease can last anywhere between 90 and 900 years. You should find out what the deal is and how much the ground rent will be.
The government is currently working on a Leasehold Reform to prevent qualifying new build properties being leasehold in England and Wales. However, this has not come into effect yet, and so it pays to ask in advance.
If you find that your property is freehold, you will not have to pay ground rent. This is the best-case scenario as it gives you more power and, ultimately, more money.
4. How many properties have been sold so far?
Are you still saving your pennies for your deposit? If so, you want to know how many of the new build properties have been sold already. This information will help you understand whether you can drag your feet for a while before making a serious offer.
If the properties are going like hotcakes, it tells you two things. Firstly, you will need to move fast if you want to snap one up, and secondly, these properties are highly popular.
5. Is the reservation fee included in the price of the property?
When looking at new build homes, most developers will ask for a reservation fee. This charge gives you the right to buy the property while also preventing the developer from accepting other offers from potential buyers. Think of it as a way to ‘bagsy’ the property or call dibs on it.
You will first need to ask how much the reservation fee is. Once you’ve got that pinned down, ask the sales agent whether the fee is rolled into the total cost of the property.
6. Can I use my own conveyancer?
If the developers try to pressure you into using their conveyancing service, that’s a real red flag. Keep in mind that developers may not always have your best interests at heart. They simply want to ensure that all of the properties are sold quickly ahead of the development.
Having your own conveyancer look over the property will give you the peace of mind that you deserve. Be firm in this aspect of the house buying process as it truly matters.
7. Are we allocated parking spaces?
Parking spaces have become a huge deal in recent years, with more and more developments popping up around the country. You may get a dedicated parking space when you buy a new build home. However, don’t take this little extra for granted.
Find out whether you will get a parking space before you sign on the dotted line. That way, you will know whether you have to deal with the fuss of parking permits or finding spaces.
8. When can you view the property before you move in?
If you’re buying a preowned home, you get the chance to view it before you make an offer. But buying a new build home is slightly different. Since the property may not be completed when you put in an offer, you will likely have to wait to see the end result.
Asking when you will be able to view the property is essential. The developers should be able to give you a reasonable timeframe that you can work towards.
9. Are there any land covenants on the new build development?
Next up, one of the most important questions to ask when buying a new build house. Land covenants are strict guidelines that determine what can and can’t be done in certain areas.
Sure, many of these restrictions will be minor, but it still pays to know about them in advance. You don’t want to move in and find out you can’t have a caravan on your front drive, for example. Especially not if you’re a family of camping enthusiasts.
10. Is the area at risk of flooding?
Purchasing a picturesque place down by the river? Nice! Be sure to ask whether there is any risk of flooding. You will find out more about this issue during conveyancing inspections, but it’s still smart to raise the question as soon as possible.
11. What utility supplier options will I have?
Nobody likes nasty surprises. When you’re buying a new build home, you may find that there are only a couple of options for utility suppliers. That in itself can be restrictive. Understanding your options ahead of time may sway your decision when making an offer.
12. What guarantees do you provide for the development?
Spoiler alert: New build properties aren’t always perfect. You may excitedly skip into your new home on the day you get your keys only to discover that there are some minor snags that need fixing. For example, the doors may not shut properly or the kitchen finish may not be up to your high standards.
Take care of this problem ahead of time by asking about the developer’s snagging process. Most of the time, the developer will have a plan in place to resolve these issues.
It’s also wise to ask whether a new build warranty will be in place. Developers aren’t legally obliged to provide warranties, but most lenders won’t get involved if there isn’t one.
The exact terms of your new home warranty can vary, making it more important that you ask the developer about it before parting with your cash!
13. Who is the development site manager?
It’s time to whip out your magnifying glass and become a detective. When enquiring about the property, ask for the name of the site manager. That piece of information could tell you everything you need to know. Google the individual and see what credentials they have.
You may discover that the manager has an excellent reputation and has previously won development awards. Great news! On the other hand, you could find out that their name has been attached to failed developments. Knowledge is power.
