If you're looking to get onto the property ladder, then you've probably considered buying a brand new home. As well as being ready to move into, you're likely to get a warranty and a wide choice of fixtures and fittings.
When you buy a new home, there are lots of factors you need to bear in mind. So, keep reading for seven essential tips for getting the new home of your dreams.
Negotiate on the price
We've previously looked at why you might pay a premium for a new build property. So, if you're already potentially paying a premium for your home, it's vital that you negotiate hard on the price of the property.
In general, the earlier you buy at a certain development, the better the deal you will get. You'll also have a wider choice of homes. If there are also several competing developments in the local area then you may also secure a better price.
Compare prices of new homes in your local area before you start to negotiate. And, be firm – don't pay more than your budget.
Read more: How to negotiate the price of a new build home
Make sure you know exactly what your new home includes
As well as negotiating on the price of your new home, you should also investigate what extras and incentives you can secure from the developer.
It may be as small as light fittings or extra plug sockets. You may also be able to negotiate carpets and furnishings, white goods, and upgrades to fitted kitchens and bathrooms.
Make sure you know exactly what is included in your new home. For example, will the garden be turfed? Do you get a parking space? Can you choose the colour schemes for the rooms?
If you're buying a new build apartment, you should also establish what the service charges and ground rent are. You also need to know exactly what you'll get for these payments – for example, does it include cleaning of communal areas?
Read: Everything you need to know about ground rent and service charges
Ensure your finances remain solid
If you're buying a new home then it's likely that your property may not be ready for several months, or even longer.
Remember that your mortgage offer is only likely to be valid for three or six months. So, if it expires before your new home is ready, you'll need to get your offer extended.
If your circumstances have changed – you have a job that pays less, you've taken out an unsecured loan, or you've missed payments and damaged your credit file – you could be refused when it comes to extending your mortgage offer.
So, make sure you stay in your job and don't take on any additional financial commitments. If you do, you could damage your chances of getting the finance you need to buy your new home.
Read: How to get a new build mortgage
Find out who has bought the other units
If you're buying an apartment, you don't want to be the only occupier in the block. If you're surrounded by rented properties it can have a negative impact on the value of your home and your living conditions.
Similarly, if you're buying a new house you don't want to be the only ones living on a building site for six months!
Ask the developer how many of the other units have sold, and who has bought them. Think twice if most of the neighbouring properties have been snapped up by landlords.
Make sure you get a warranty
When you buy a new home, make sure that you're getting a recognised warranty for the property.
Popular schemes include NHBC's Buildmark, Premier Guarantee and the LABC Warranty.
This warranty protects you if your builder goes out of business after you pay your deposit. This is important as you could otherwise lose thousands of pounds. A warranty will also ensure your property is built to agreed standards.
Never proceed with a purchase if your developer does not offer a recognised warranty. And, once you know what the specific warranty is, make sure you know what it covers you for.
Find out exactly when your home will be ready
If your builder offers a warranty then they also have to adhere to the Consumer Code for Home Builders. This Code is designed to protect you if you're buying off-plan or you're purchasing a new build home.
One of the most useful parts of the Code is that it forces a developer to provide realistic information about when they expect your home to be completed. And, if there is an unreasonable delay to the completion date stated in the Contract of Sale (the document you sign when you exchange contracts and pay your deposit), the builder must refund your money and any fees in full.
An ‘unreasonable’ delay is generally defined as six months for a house and 12 months for an apartment. The period begins from the completion date stated in the Contract of Sale.
Don't just focus on the show home
Developers use their show home as a tool to sell the development. Often, this means that the show home features superior fixtures and fittings to show off the property in the very best light.
Always remember that your property is likely to be different. If it's a flat, it might be a different layout or on a different floor. If it's a house, it will be on a different plot with a different aspect. Your kitchen and bathroom may be different, and there may be extras in a show home that you won't receive as standard (for example, built-in wardrobes).
Look beyond the show home and think about the property you're actually considering. Is it still right for you?
Read more: The pros and cons of buying a show home