The CIOB and Homeowners Alliance has a number of tips to help buyers considering purchasing a new-build property:
1. Check the housebuilder is registered
Prospective new-build buyers should always check if the housebuilder in question is registered with the New Homes Quality Board.
According to the CIOB, around 80 per cent of developers in England are registered, or are currently going through registration. Once registered, they are committed to a well-defined set of standards called the New Homes Quality Code.
If the housebuilder isn’t registered with the NHQB ask them about any other codes or standards they might be signed up to.
2. Don’t rely solely on promotional material
Developers will do whatever the can do safeguard a sale, so don’t get sucked in by only looking at glossy promotional material online or in print.
It’s vital to visit the site in person and get a good sense of the local area as well. You’ll need to work out whether nearby infrastructure, appreciate transport links, shops and healthcare access, is sufficient for your needs.
If others have already moved into the new-build site, ask them how they found the buying process and whether or not their home has been finished to a high standard.
3. Haggle on price
Developers want to safeguard the highest price possible for new-builds. If you want to make an offer on a new-build, don’t just offer the asking price from the outset.
Market conditions are changing all the time, so have a look around and see what prices other new-build and older properties in the area you are looking at sold for recently. You can look at sold prices via the Land Registry, Zoopla and Rightmove.
The Homeowners Alliance adds: ‘Many developers offer incentives to differentiate them from other local developers: free furnishings, a car parking space, or by paying your legal fees or stamp duty.
‘If you can’t negotiate money off the price, the offer to pay your stamp duty, is likely to save you the most money. Be aware that incentives offered by the developer over about 5 per cent impact how much your mortgage provider will lend.’
4. Don’t be pushed into using the developer’s conveyancing solicitor
Housebuilders may give you the opportunity to use their own conveyancing solicitors to complete a sale.
However, in many instances, it might be more prudent to appoint a conveyancing solicitor yourself.
The Homeowners Alliance said: ‘It’s not uncommon for the developers’ solicitor and sales team to exert huge pressure on you to complete, even where there are clear conveyancing problems.
‘If you have a good, independent conveyancing solicitor, they are less likely to bend under pressure from the developer and act in your interests.’
5. Check for snags
If you take the plunge with a new-build, use a reputable snagging company to visit the property before you proceed in or within the first few weeks of moving in, to check for defects.
The CIOB said: ‘Not all defects can be seen by the untrained eye so getting in a professional to thoroughly check the property over is highly recommended.
‘If your snagging company finds any defects, report them to the housebuilder immediately and refer back to the NHQC or their own set of standards.
‘Your housebuilder must be given the opportunity to rectify any issues with the property before you take your complaint encourage.
‘If the housebuilder doesn’t settle the problems to a satisfactory standard or if no agreement can be made on fixing the problem, you can take your complaint to the New Homes Ombudsman.
‘The NHO will also deal with problems in the purchasing or post-sale experience processes.’
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