New Build Homes - How to Make Sure You're Getting Value For Money

If you're buying a new build property you'll most likely see the following messages plastered online and in the developer's office "HELP TO BUY" and "Buy your dream home with only 5% deposit!"

Sound familiar?  Well Help to Buy has been a huge boost to the house builders as more and more people, especially first-time buyers, have been taking advantage of the scheme.  This has fuelled a resurgence in inflated new build selling prices and we encourage buyers to do their research before buying and not always take so-called guarantees along the lines of "X% discount as it's the last in this phase" as read.  New build properties are always sold for a premium, otherwise how would the house builders make their money?

They can of course prove to be a fantastic investment if in the right area but just because it's a new build with a bargain sticker on it doesn't mean it is a bargain. And just because it's new doesn't mean it won't need work doing on it; a third of new houses have 100 to 200 defects, says Steve Roberts of New Build Inspections, and this can lead to protracted negotiations with the developer on what to put right. A common issue is cracks appearing in the plasterwork, which is usually down to small movements in the building while it finds its natural resting position on the ground.

What is a Building Warranty?

New build homes do come with warranties which are a big selling point to buyers and sellers, however a word of caution here - do find out exactly what this does and doesn't cover as many of these warranties have been watered down and contain umpteen clauses.
Many new homes are covered for structural problems by building guarantees issued by the builder. Structural problems include things like subsidence, woodworm, damp or problems with your chimney stack, roof or walls.

These building guarantees usually last for 10 to 15 years after the property is built. If you own a property which is not brand new but less than ten to 15 years old, you may be covered by such a guarantee. These types of guarantee cover problems with the existing structure of the property for the full period of the guarantee. They can also cover other problems for a lesser time. For example, problems with windows or floors may be covered during the first two years.

The main new home warranty providers also comply with the Consumer Code for Homebuilders. This is a code to make home buying fairer and includes a dispute resolution scheme to deal with complaints within two years of buying a home, if builders don't comply with the code.

Sometimes, you may find you aren't covered for things you thought you were. For example, if you had replacement windows, you might find the frames are covered by the warranty, but the panes aren't.

Our advice for buyers of new-build homes

  • Check the guarantees and warranties so you know exactly what you are covered for
  • Take time to learn about the area of the development, some new build sites may seem to be a great buy at the time but if you're in the rough part of town you may find it difficult to sell further down the line
  • Don't believe developer discounts.  Do your own research first

Published on 26 June 2014

Source Dominic Woodward

Content © 2017 Trinity Sales    Website Built by Estates IT Limited   Powered by PCHomes Estate Agent Software    +Site Map    Privacy