The advantages of a new build property
ESPC helps you decide
In this article we discuss the pro's and con's of buying a new build home. We look at warranties, incentives, how to assess the scope for negotiation and buying from plan.
Opportunities for self expression
There is something magical about moving into a home where no-one else has previously lived. Freshly painted walls, modern kitchens, tidy bathrooms and gardens which can be designed to suit. Such a blank canvas allows for self expression in so many ways including the choice of colour schemes and, fixtures and fittings.
The advantages of a new property are undisputable. A choice of layout in a desired location, warranties which can last for up to 10 years and an energy efficiency which makes old properties appear environmentally unfriendly.
While older properties are generally described as "having more character", many new home builders have risen to the challenge by creating individual designs, made use of the roof space and bought into the concept of flexible housing.
Those who prefer a new build generally enjoy lower maintenance and even cheaper utility bills courtesy of lower ceilings. Neighbours tend to take a pride in ownership and gardens are kept tidy, while in flats, property managers may ensure the maintenance of standards and address issues before the building falls into disrepair.
How to source your new build
If you are interested in sourcing a new build the ESPC New Builders Directory is a handy place to start. With direct links to home builders' websites you can establish where your favourite builder has a new development locally.
Warranties
Builders can sign up to a body who set maintenance and construction standards. These companies offer warranty schemes and include the National House Building council, NHBC the Premier Guarantee or Zurich Municipal
These cover against all defects but you should be aware they do not guarantee your home but are merely insurance schemes for the developer and not for the home owner.
Part-exchange deals
Some home builders provide assistance by buying your existing property at the market rate in exchange for one of theirs. See what kind of deal your chopsen developer can offer.
Incentives
Gone are the days of just floor coverings. Offers now include paying the mortgage for a year, cash back on completion or stamp duty paid. Incentives are an indication builders have to work harder to obtain a sale, so exploit the situation.
At times first time buyers deposits of 5% are available. Great for the first time buyers they allow earlier entry onto the property ladder or free up the deposit for furniture and fittings and the house warming party.
Freedom of choice
If you commit early you can usually have a choice of kitchen and bathroom suite. Carpet colours, if they are part of the package can usually be chosen at any point of the development and they are a huge bonus when trying to match colour schemes.
If you prefer wooden flooring and want to do it yourself, negotiate the cost of the carpets off the price. Many house builders are reluctant to supply wooden flooring in flats due to noise levels, so be prepared for disappointment.
Buying tips - how to get the price down
Sometimes it is possible to negotiate on the price of a new build. Notice the Sales Consultants job title. Often their business card will refer to Sales Negotiator, which by definition means flexibility - downwards.
Use your ability to pay up front or "commit now" to get the price down, and never be frightened to ask when their company financial year end is. Major builders will be pushing to meet sales targets and the pressure will be on to deliver.
Take advantage of the few remaining properties on sale
Where most of the properties are sold, the developer will not wish to tie up staff on-site as it means further advertising costs, wages and a perception the site is difficult to sell. Builders want to move on! If they are already building a stage 2 the price will more than likely be higher so there is no wish to promote Phase 1 at the lower rate.
Where applicable, emphasise the lack of choice, and as well as price try and barter for additional incentives. It may sound as though £5,000 of carpets are included but be assured they won't cost the builder anything near that. Prepare yourself by sourcing a separate quote and barter away the difference.
Competing sites, impressive add-ons
Often competitor sites are next to one another. Find out what you can get from each and trade them off against one another. You may have a preference but don't be too keen to commit until you know you've exhausted the negotiations.
If all this makes you feel uncomfortable why not speak to your ESPC Solicitor who will be experienced in negotiation.
Remember, in difficult market conditions new properties are more likely to fall in value after purchase so trade on this fact when concluding the deal.
Disadvantages of buying new property
The main issue with new properties is room sizes and lack of storage. This has been aggravated by new building techniques in roof construction and the loss of the traditional attic space. Related to this is their perceived lack of character and out of town locations.
Building materials have undermined sound proofing while new homes are often subject to snagging issues. Some peace of mind can be achieved from knowing your builder has membership of a national body such as the House Building Council NHBC.
Buying from plan
Buying from plan is a risky business. You have to be completely confident on the builder's reputation and you also have to be able to visualise dimensions, fixtures, the views and natural light from windows. It's probably your biggest ever investment yet you are making your decision from a show home which probably doesn't reflect what your buying into.
Hidden costs
When buying new the cost of landscaping the garden has to be factored in and if this involves employing a contractor the end results are good but the cost can escalate. Rather than DIY stores, visit builders merchants first as they are considerably cheaper for the same materials.
Add-ons such as TV aerials, smoke alarms, curtain rails, telephone connections, all have to be added to the bottom line so think ahead before you commit.
Modern flats incur Property Management fees and while they may appear reasonable at the outset they are known to escalate sharply in years 2 and 3 onwards. Remember, the builder has no control over these and you may have to form a Residents Committee to fight your corner.
The decision boils down to personal taste and circumstances, but whatever you choose the ESPC continues to offer the widest choice of properties for sale in the local region.
For a comparison against older properties read our article old versus new.
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