You’re likely reading this blog post because you’re thinking of purchasing a new house. Not new to you, but literally a brand new place that a property developer recently finished building from scratch.
Some people that buy brand new houses assume the purchasing process is the same as with established properties: you get approved for a mortgage, you make an offer, and when it gets accepted, you move into your new house.
However, the home-buying process works a bit differently with newly-build houses. There are some facts about the process you should bear in mind before parting with any money. Here’s what you need to know:
The Advertised Price Isn’t Set in Stone
When you view a newly-built house for sale, the property developer will typically advertise the asking price everywhere. However, you shouldn’t assume that the price is what you need to pay; it’s only an asking price.
That means you can negotiate on the price as you would with any other property. Armed with that information, you could potentially save some money and get a better deal than some of your soon-to-be neighbours.
You are more likely to get a discounted price if you negotiate while the property is still getting built, as the developers may need funding to continue with construction. Similarly, you could get a lower price after construction gets finished if they haven’t found many buyers.
Display Homes Give You a Chance to Look Around
Let’s face it: when you’re about to spend money on a newly-built property, you want to make sure you’re 100% happy with it. Otherwise, you could end up purchasing a house that doesn’t quite meet your needs.
With any new residential developments, developers will make available display homes that prospective buyers can view at any time. The idea behind display homes is similar to “demonstrator cars” at car dealerships; it gives customers a chance to try before they buy!
Never buy a brand new house without first scrutinising the display home. That way, you can judge for yourself if every aspect of the property best meets your needs and has been built to a high standard.
Study the Development Plans
As you can imagine, some houses on a new housing development are better than others. The construction quality and materials used will typically be the same. It’s just that some properties are in better locations in a development.
That’s why you should study a new development’s plans before you pick a plot and buy it. For example, you could select a plot that offers a better view of the surrounding landscape than others.
One fact that might surprise you is that the ‘better’ plot could be the same price as other houses on the development with the exact specification. So, it’s worth checking the details before you make a decision.
By keeping in mind the above facts, you can make sure that you get a good deal on a newly-built house. Good luck!