If you’ve found Chameleon Group, you’re probably considering buying a new build property. So we have created a short check list of tips or FAQ’s to consider, when choosing your new home.

Developer Background Check

Much like undertaking research when buying a car, or choosing a holiday destination, take the time to research the developer or housebuilder. Ask lots of questions about the developer, and undertake some research online. Find out about previous developments, and try and do some digging around about their reputation. Try not to get too bogged down with reading negative forums, as any reviews as they could just be isolated bad experiences, but ensure that you make a note of anything that does concern you, and come armed with questions when you go to view. At Chameleon Group, we consider our developer clients as long standing industry friends - we don't work with developments we cannot get enthusiastic about, and that will put our customers or our reputation at risk.

Do New Homes depreciate?

Although it might be the elephant in the room, a property can depreciate as much as it can appreciate. Thankfully, buying in London and the South West has been incredibly forgiving over the past 100 years. Many industry experts consider 2014, the height of the market in recent times, yet when you consider the prices in 2014, it’s hard to find similar priced properties today. So whilst it’s important to feel confident in the price you’re paying, don’t worry about what the market might be doing in 6-12 months as you’re unlikely to be selling so soon. Instead, try to visualise the property market, and economy in 5, or 10 years from now.

Price Per Square Foot (£psf)

To avoid putting your nest egg at risk, and your equity secure when you come to sell, check the price per square foot, and compare it with similar properties which have recently sold in the development or the area. This will give you an invaluable understanding on whether you are paying a premium to begin with, and will help you determine what you are getting for that premium. Although there are always exceptions to the rules (converted buildings for instance, which are often much smaller apartment types, and therefore command much high rates per square foot), conventional new build should be comparable in terms of price, to projects in the local area.

Incentives

A key questions to ask, it whether the developer is willing to offer any incentives, or discounts to attract buyers to the development. Furniture packs or stamp duty contributions are not uncommon, but if the development is selling without too much trouble, these might not always be available. Be ready to pay full asking prices, if the development is selling and is well priced.

Adding Value

Although this is much harder in London due to the tenure constraints of each property, considering how you could add value, so that your new home is worth more when you come to sell in years to come. Perhaps you could add an extension, or convert a room from a kitchen to bedroom (provided you have gained the appropriate consents). Even adding personal touches such as painting walls, dressing balconies and building in storage will make yours stand out from the crowd.

28 Day Exchange Policy

When reserving your new home, you will be faced with a reservation contract which will stipulate having to exchange contracts within 28 days. Yet despite this, you will be at mercy of your lender and often, Help to Buy approving the equity loan. The 28 day deadline is there to use as a “get out” clause for the seller, if there is no progress being made on the buyers side. And so whilst these deadline can overrun by a week or two, by appointing your solicitor, booking the mortgage valuation and demonstrating general progress, any developer we know of, is unlikely to pull out of the deal.

A good tip is to ensure that if you have spoken to a broker prior to viewing, and consider using a solicitor which your agent or the developer recommends. Some “out of town” solicitors have been now to hold everything up and can have a tremendous impact on whether everything goes through on time. They might save you some money, but they can cost you the deal. Stay local where possible.

Snagging

When you first move into your property, or prior to completion, create a list snagging list by noting down any defects in the property or finish. Often the paintwork can get chipped, or the carpets might have been rushed by a fitter. Check the sealant around the bath, and the grouting around the tiles, as this will not be covered by the building warranty. These type of minor touch ups are easy for the developer to put right straight away whilst they still have a team onsite.

10 Year Building Warranty

Most new homes in the UK come with a building guarantee or a warranty. Whilst this is not a legal requirement, most lenders will stipulate that each new property must come with a 10 year insurance policy to protect you as a buyer and service charge payee, against any unlikely but costly structural defects . One of the more popular providers is the National House Building Council (NHBC) but there are number of others widely recognised by most lenders. In addition, the building warranty will also protect your exchange deposit, up to £100,000, should the developer not complete the building.

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