You have finally found your dream home and you are excited about being the first owners of a brand new home, but what things should you consider when making this decision?
The biggest attraction to purchasers of a new build property is that they will be the first owners and the repairs and redecoration costs should be minimal for the first few years. The majority of properties come with some form of warranty, usually for 10 years, but some warranties, can be fairly limited and you should read carefully the terms of the warranty. Another advantage of a new build home is that it will be more energy efficient and you will benefit from lower running costs and energy bills.
Unfortunately, there are a number of pitfalls that you should consider when purchasing a new build property. The standard of the build and the service of some developers can be below the standard expected and there have been a number of reports of problems experienced with developers not dealing with issues after completion. To minimise the risk of this, we would recommend that you have a snagging survey carried out by a qualified surveyor, prior to completion. This will enable a list of works and timescales for carrying these works out to be agreed with the developer and provision for this should also be included in the sales contract. We would also recommend visiting the developer’s other sites and checking the quality of the finish of those houses and, if possible, speaking to any owners who have already purchased, to ascertain whether any problems have been experienced.
Another issue with new builds is that they may be being sold at a premium price and in the future you may not get your money back if you decide to sell within the first couple of years. To minimise the risk of this, we would recommend that you compare the new build home with similar older properties, in terms of value for space, so that you understand whether and how much of a premium you are paying for a new property. You should also carry out research online and try to ascertain what other plots have sold for and whether there is any room for negotiation on the asking price, or for incentives or extras to be included, such as payment of legal fees, stamp duty or extras, such as flooring to be included.
If you are looking at purchasing a new build property and require assistance in this regard then please do not hesitate to contact the property department at Dawson Hart, who have a wealth of experience in dealing with the legal formalities of purchasing new build properties.
For more information, please contact Gemma Blizard.