Don't do a Shaky!

For many buying a property starts and finishes with the lure of a multinational builder’s sales office. Long gone are the days when everyone used to quip about the swinging of much loved pets in very small rooms and whilst the helicopter no longer hovers over our television screens, this does not mean that the builders have been idle in their marketing strategies. Part exchange has given way to Help to Buy as the market for new build properties continues to gather pace from the property crash 2007. There are many advantages of buying a property off plan but there are some anomalies in the process that many of my clients are unaware of. This week’s blog is all about buying new.

• The whole procedure should be simple given the fact that nearly all builders will insist upon a non negotiable contract. Once you have your mortgage sorted out then it should be just signing on the line that is dotted. There are additional costs for searches that will mean around £100 added to the usual legal costs and the likelihood of what can sometimes be a hefty deposit paid on conclusion of missives. Say goodbye to the deposit if you don’t complete!

• Buying at the right time of the year before builders half-year or full year end will leave you with more goodies than an episode of "Crackerjack" - white goods packages, garden packages, carpet and furnishing packages – if there is something that can be packaged as an incentive then the builders will already have thought about it

• For many the builder remains the white knight rescuing them from an inability to sell their own property. The part exchange deal is always stronger in a poorer market but is nonetheless always in the builder’s arsenal - important to know what your property is actually worth though.

• Everyone knows where they stand as far as the conditions of ownership are concerned. A document known as a Deed of Conditions is entered into at settlement and each proprietor has to abide by its terms and conditions. No more arguments with your neighbour about who has to pay for the upkeep of that fence.

• The date of entry is decided once the property has been passed as habitable by the local authority. The builder will only give you an indicative date at the start of the process. This can produce difficulties in trying to agree a date of entry in connection with your seller but very rarely is it a stumbling block.

• The actual settlement of the transaction can be sometimes stressful as most builders will insist upon completion by bank transfer. In order to complete the purchase by bank transfer you have to ensure that your sale completes by bank transfer also. The difficulty is that there is a cut-off for bank transfers going out at 3 PM. This means that if we do not have the money from your sale by 3 PM there could be difficulties in completing the purchase. Thankfully most builders know the rules and, if push comes to shove, will probably accept a cheque.

• And you don't have to do anything when you move in! White walls, new appliances, virgin carpets – what's not to like! Best off buying in a small development rather than one with multiple phases – a small development will likely attract exclusivity – no bad thing when you come to sell. Do remember though, if you have to sell whilst the builders are still on site who is going to want a second-hand property when they can buy a split brand-new one!

As ever, if you are thinking of buying in the near future then please do get in touch. I would be delighted to assistance in any way that I can.