Buying from a Builder gives you the opportunity to move into your dream home and everything is brand new. Often you have the opportunity to have a say in the final layout and finishes. The process of buying a New Build property does however involve some special considerations.
Timing is Key
If you have a property to sell it is important to get the timing right. If you were to buy a house privately, we may normally submit an Offer with an entry date in about 12 weeks to give you time to sell and your purchaser time to get their mortgage through.
With a new Build we establish the completion date and suggest you launch your property on the market at least 12 weeks prior to the anticipated completion date.
Each property is different and we will undertake a free pre-sale valuation of your property before you sign up for the new build purchase to help you get the timing right.
Check out our useful six step guide on the process of buying a new build property in the section below…
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The process of buying a new build property
1. Reserving Your Property
When you have found your property you will be asked to sign a reservation form and pay a reservation fee. This acts as holding exercise and the Builders undertake not to sell to anyone else during the reservation period which is normally around two weeks. This is the time to do your homework!
2. The Missives
The missives are the legal documents which constitute your contract for the purchase. In a new build purchase the missive document is prepared by the Builders’ solicitor and sent to us during the reservation period. A binding contract will be constituted when the missives are signed by both parties and you will have to pay the price on the completion date otherwise there are financial penalties.
We therefore have to establish that everything stacks up financially, and wait for missives to be concluded on the sale of your own place before we submit the missives for the new build property.
3. The Valuation
Assuming everything is in order we then arrange for a mortgage valuation (Builders are not required to produce a Home Report for a new build property). You may find it strange that we need to do a mortgage valuation if your dream home is just a muddy hole in the ground at present, but remember you are signing up to pay for something down the line and you have to ensure that it will be worth the money on completion. The mortgage lender also needs the valuation to process the mortgage application.
The valuation takes place on the basis of comparable properties elsewhere, the show house, the plans, and other information the Builders provide to the surveyor. If the property is not complete at the time of the valuation, the property is re-inspected on completion by the surveyor for a small additional fee.
4. Deposit
When you are happy with everything, we submit the Missives to the Builders’ solicitors, normally with a contractual letter to fine tune the missives to protect your position. Assuming everything is agreed missives are concluded shortly afterwards and you then have a binding contract for the purchase. A non
returnable deposit is usually payable at this stage.
5. Conveyancing Process
The conveyancing process and mortgage draw down follow and we tie in your purchase of the new build property with your sale in accordance with the standard sale and purchase transaction.
6. Final Considerations
When you are purchasing or selling we generally recommend that it is an appropriate time for you to consider making a Will and signing a Power of Attorney.