Buying a new build property is an exciting yet complex process. From understanding the market to accessing funding and finalising your purchase, there are key steps to ensure a smooth transaction. This guide will walk you through everything you need to know when purchasing a new build property.

What is a new build property? 

A new build property is exactly what it sounds like: a home that is newly constructed and has never been lived in. These properties are often sold “off plan,” meaning they are marketed and available for purchase before construction is completed or sometimes even before building has started. Buying off plan allows you to secure a home in a development before it’s built, giving you the potential to select finishes and designs. However, it’s important to understand that delays in construction or changes to the final design can be a factor when buying a home that is still under construction.

What are the pros and cons of buying a new build property? 

New build homes offer several advantages. These homes typically feature modern designs, energy-efficient technologies, and low maintenance costs, as everything is brand new. Buyers may also benefit from warranties and the ability to customise certain aspects of the home. However, there are some downsides. New builds can lack the character and charm of older homes, and construction delays or defects may arise. Additionally, they may be located in newly developed areas with fewer established amenities or community feel. New builds may also come at a premium price compared to older homes, affecting their overall affordability.

What to consider when buying a new build home 

There are a number of key considerations you should be aware of if you’re considering buying a new build home. From seeking advice and support to understanding the process, the considerations listed below can help you to make confident, informed decisions throughout the process. 

Financial advice 

It’s wise to seek financial advice from your bank or an independent advisor when considering buying a property. Doing so will help you assess what you can afford and guide you through the unique challenges of purchasing a new build. For instance, lenders often offer lower loan-to-value ratios on new builds, which can impact the amount you’re able to borrow. A financial advisor can help you navigate these conditions, ensuring you’re well-prepared and informed throughout the buying process.

Researching developments 

With new developments emerging regularly, it’s essential to research ongoing or planned projects in areas you’re interested in to find the perfect new build home. Staying informed about the latest developments will help you make a well-informed decision. Estate agents can offer valuable insights and details about these developments, making it easier for you to compare options and choose the ideal location and property, simplifying your search for a new home.

Funding incentives 

There are a number of funding opportunities that prospective buyers of new build properties can take advantage of. The First Homes scheme in England allows first-time buyers to purchase a new build home at 30% to 50% below market value. This funding applies to new homes built by developers or previously purchased homes through the scheme.

Offers and reservations 

Like any property, the listed price of a new build is an asking price, so be prepared to negotiate. Deals are often available early in the development or when only a few homes remain. To assess value, you should compare the price of the new build with similar older homes recently sold in the area. Also, check the price per square foot to gauge if there’s a premium.

If the price isn’t negotiable, consider asking the developer to cover your stamp duty or include extras like flooring or furniture.

Once your offer is accepted, you’ll need to pay a reservation fee. Typically around £1,000, the reservation fee secures the property with a formal agreement before it is completed or officially put on the market. The cost of the fee is then deducted from the deposit upon exchange. The reservation often holds the home for a set period, during which the buyer can finalise the terms of the sale, such as the purchase price and mortgage arrangements. 

Buy a new build home with Michael Anthony 

Even with all the information you need at your fingertips, buying a property can be daunting. Michael Anthony can help to make the process as simple and stress-free as possible, supporting you to ensure you find the ideal property at a price that works for you. We specialise in the sale of new build homes and have extensive experience navigating the unique complexities of new development sales processes. Our team can provide practical advice and guidance throughout the buying process, from initial viewings to making an offer on a property. You can even use our area guides  to explore new developments in the locations which interest you most. 

Keen to find the perfect new build house for your family? Get in touch with the team at Michael Anthony today and tell us about what you’re looking for. 

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