New Build buying advice

Kyrae

New builds sure do seem to get a hard time on this forum! Myself and my partner are in the process of buying a new build at the moment, in the off plan stage. I'd say that if it's your perfect dream house and you can't find a similar house already built elsewhere, and you are buying it as a home rather than an investment then go for it!

There's many posts concentrating on the negative side of buying off plan, but on the positive side it gives you the chance to pick your ideal plot with the best location and best garden. It's also sometimes cheaper as the prices seem to start lower before the houses are built and then the developers put them up once the houses start to be built, that's what has happened on this development anyway. That said... yes new builds are over priced and you're paying extra to have a new house with all the fixtures and fittings of your choosing. Fine if you're going to be living there for 10 or so years, but if you do need to sell in the next couple years then it'll probably be at a loss. Sure we'll be living in ours for years to come though

From experience i'd say that developers are very reluctant to negotiate until you're in a position to exchange contracts. We tried negotiating at the start with no luck, but once we had the money ready to exchange the developer was happy to negotiate, free carpets, fees paid, etc. I'd say that stamp duty, legal fees etc is a reasonable request. If you want a snagging report done i'd say it's probably best to arrange that yourself with an outside company so that they're unbiased.

A warning though, yes there is a risk of the market dropping and you struggling to get a mortgage so it's something to consider. Shouldn't be too much of a problem if you exchange contracts when the house is built and ready to move into, but if you exchange contracts months ahead then take some precautions. Make sure your mortgage offer does not expire before the date the house will be built. This is tricky as who knows when the builder will finish the house, delays can happen. Following advice on this forum we asked our solicitor to get a clause written into the contracts that should our mortgage offer expire before the house is built and the mortgage company will not extend the offer, then we have a get out clause where we can pull out of the sale and get our deposit back. Alternatively, get a clause written in that the house must be built by a certain date or you can pull out.

Also, don't sign any contracts until your mortgage advisor has arranged a surveyor to come and value the property, incase it's valued for less than you're paying and they won't give you a mortgage for the amount you need.

Hope that helps

optoopto

Kyrae wrote: »

.
Make sure your mortgage offer does not expire before the date the house will be built. Following advice on this forum we asked our solicitor to get a clause written into the contracts that should our mortgage offer expire before the house is built and the mortgage company will not extend the offer, then we have a get out clause where we can pull out of the sale and get our deposit back. Alternatively, get a clause written in that the house must be built by a certain date or you can pull out.

Kyrae can you tell me which building company you dealt with? We are in a similar situation with George Wimpey on an off plan new build and are hoping to have a similar clause written into our contract when we exchange. How resistant were your developers to allowing insertion of this clause?

Kyrae

Replied in PM!

AMILLIONDOLLARS

peld wrote: »

Yes we know we are legally obliged to buy the place once we exchange, thats why I was wondering if anybody had experience of negotiating a new price when there is a large gap between exchange and completion.

Try these people!

http://www.berkeleyhomescollective.com/

I reckon that a lot of the new builds bought off plan in 2006/2007 will be dumped into the marketplace, at cut throat prices, as more and more buyers fail to complete, (this will further depress the value of new builds, making the negative equity on them more severe) look out for the Fire Sales in the first quarter of 2010. The Government have just started theirs!

Buy a new build now if you want to lose your sanity as well as your money.



AMD

kyoto

I just signed up to MSE with the same problem mentioned in this thread. Bought a new build outside of Leeds, and the builder has delayed twice. I'd wait till it's built to get maximum haggling power.

skintlass

It depends - there is a new build estate which is selling at the moment outside of leeds and they've kept their prices up (apart from a brief blip for a few months). Mind you they do seem to be building slowly enough that they complete a build of each type and sell it before building anther.

knightstyle

We bought a new build a couple of years ago. It had been completed and we got the price reduced as builder needed to sell. Our daughter has just bought a new build, moved in last week, she got an interest free, for 10 years, loan for 25% of the price from the builder as an incentive. Builders are more likely to give discounts later. But, they may include extra sockets, aerial and such free if you insist before signing.
So first I would say check if there is an enforcable timescale when buying off plan. Then check the construction plan carefully, some new builds do not conform to latest regulations as they were planned some time ago. Ours did not have a condensing boiler even though the regs said it should have! Plus check adequate sound insulation between you and adjoining houses, as it is off plan you could loose a few cms. of the adjoining rooms to increase this, well worth it in my opinion.
You say it is in Scotland, is it timber frame? if so check which company is supplying the builders as most builders buy these as a kit, then google to see if they have a good reputation. Some years ago there were problems with one but I can't remember the details.
Then only you can decide if you can afford to loose your deposit if it goes pearshaped, we lost £500 in a similar situation some years ago.
Let us know what you decide, good luck.

AMILLIONDOLLARS

knightstyle wrote: »

We bought a new build a couple of years ago. It had been completed and we got the price reduced as builder needed to sell.

2007 That was then, 2009 is a completely different ball game, different rules apply!

AMD

AMILLIONDOLLARS

I have just lifted this very sad message by someone who bought off plan in 2007, it shows the reality of how so many purchasers are suffering. Please, please don't let this happen to you.

I pray this person gets some help.


http://groups.yahoo.com/group/berkeley-customers/message/510

Here another message about berkeley on the same topic - I've not included the email details for privacy


[FONT=&quot]Hi all,
I've just been to see my flat bought off plan in 2007. It's supposed to be top spec according to the sales brochures. The finish was very disappointing to say the least. Poor tiling, poor finish to walls/skirting boards etc. Low quality materials and sanitary ware used in kitchen and bathroom. Things that were specified in brochure such as chrome light and plug fitting had been replaced with normal white plastic ones. Price was almost 300000 and it has been valued at 200,000. Basically I want to be released from my contract as i feel it has been missold. My surveyor says he is not responsible for commenting on the finish or materials used and my solicitor says I need some proof of it being sub standard. Does anyone know who can provide this proof or comment on wether or not they have delivered what they promised?? (can't believe I paid the surveyor 400 quid and he cant!).
Thanks


AMD
[/FONT]