24 May Things To Avoid When Buying A Newly Built Home
Buying a newly built home is an exciting option, especially for first-time buyers. Or it may be that you seek a new home for your rapidly growing family. In any case, it is worth noting the common problems that come with buying a newly built home that many buyers are usually unaware of. Below, we’re going to cover the common pitfalls and how to sidestep them during the process of getting your new house.
Let’s take a look at some of the benefits of buying a newly built home. These houses are attractive for several reasons:
- You will be the first to occupy the property
- Minimal redecoration and repair costs in the early life of the property
- You can tailor the fittings and fixtures of the house interior as you see fit as well as improve and enhance the exterior
- There are guarantees that come with newly built properties
The Pitfalls and How You Can Avoid Them
Buying a just constructed home is fantastic, but it does come with some caveats you should be aware of. Below are some of the ones we think you should keep an eye out for:
Whenever you are buying a new product, whether its a car or a new house, the transaction process and after-sales service will always differ. The problem is, you will be expecting quality service from a homebuilder who is collecting hundreds of thousands from you for a new home. However, that is not always the case, as the quality and after sales service of some developers can be lackluster. Additionally, some developers can withhold information during their promotional campaign. Here’s what you should do to avoid such a problem –
Carry out diligent research about the homebuilders in the area where you intend to buy the property. You can do this in part by going online and seeing what people are saying about them. Find out from neighbours in the property area how easy the buying process was for them and things to take note of when negotiating the contract. It is important you visit the site where the property is and thoroughly check that there isn’t anything you missed out on.
House depreciates in value, just like vehicles. This happens the moment you open the door to your new house. Even if the property market is rising in value, there is no guarantee that you will get back the amount you bought the house for in the first two years.To combat this, compare your new house with older houses that are similar in terms of space, value as well and rental value in the area of the property. Check them against the resale market. This will give you the idea of how much you are paying as a premium. Look out for bargain deals, which are usually done when there are just a few properties left or at the end of their financial year. Plan for the future when buying your new home, too. Consider how it will fit your new partner and children. Buy houses that you can you add value to, like building a conservatory in the backyard, or something with space to have a landscaped garden. Additions like these can help you achieve the optimum sale price for your house if you wish to resell it.
Watch Out For the Leasehold Trap
It is very critical to know if your new build house is on leasehold or freehold. If it is leasehold, then it means you get a lease from the current freeholder of the home. Leases are usually for the long term, in the range of 90-120 years.
There are certain conditions that come with leasehold houses you need to watch out for, like restrictions put in place by the freeholder. These restrictions include seeking the freeholder’s permission to do certain things within the premises such as owning a pet or making alterations. Additionally, the leaseholder bears the burden of repair and maintenance, insurance payment as well as annual ground rent, along with certain fees to freeholders. All these things can make your home unmarketable if you want to resell.
If you are buying a house, it is important you ask the builders if the house is being offered on freehold or leasehold. If it is on leasehold, ask your solicitor to properly explain the terms contained in the lease agreement, present and future charges as well as the restrictions present in the terms.
A homebuilder has no justification for withholding the freehold to a property if it is the only property on the land. It is better to avoid such a house or insist on buying only if the property will be sold on freehold.
Study The Guarantees Properly
There is this peace of mind that comes with guarantees, guarantee providers like NHBC offer ones that last over 10 years. They come with policies that are supposed to benefit owners of the property across a decade. However, you should know that NHBC is an insurance company and the guarantees provided are actually insurance policies. So when you make a claim, the company could use the small print to dodge payment or avoid performing needed repairs.
Review your home contract and ensure there is a “snagging” provision contained therein to enable you to sort out minor problems directly with the house builder. For the first two years after the construction of your property, NHBC will step in incase your claim against the house builder is unfulfilled.
To avoid getting into any of these pitfalls to begin with, it is best you team up with a reputable homebuilder like Redrow right from the beginning. You need a homebuilder that will provide full details and clear information about your chosen home, while giving you proper assistance throughout the buying process. You can head over to the Redrow website to learn about the best home deals in the UK.
Buying a new property is a huge decision that you shouldn’t take lightly, as it has a huge financial implication. That is why it is important that you take the appropriate steps and make the right decision when choosing a homebuilder. Find someone that will make the process as easy as possible, while saving a lot of the stress that comes with buying your dream home.