Buying a New Home? Then Take Heed!
by Patricia Montgomery , LincsMag Writer.
Date: 1 November 2009
There are many new housing developments going on around Lincolnshire from reputable developers such as Barratt Homes, David Wilson Homes and Redrow, but these homes are usually at a fixed price and hiding the “hidden” extras. With some developers it’s even worse.
Often first time buyers are caught out due to the fact that the price quoted, and let’s face it, it’s the price that we buyers focus on and work to, is not the actual “end” price.
The price often touted is in actual fact for just a shell and lacking kitchen, bathroom and often, even tiles, flooring, carpets and curtain rails.
Start adding on all these “extras”, which really in the real world are not what I would call extras, but the normal necessities of the property to be habitable in, and costs start to really rocket. Some unscrupulous developers, and I know of one Lincolnshire based one, have even made this a money making racket on unsuspecting buyers.
Virtually in all new building projects, developers quickly sell homes as soon as the first few are complete, with the obvious aim of showing them as samples to possible new buyers. When it comes to these first built houses, you will find that the builder’s design team pull out the stops so as to finish these model homes to be appealing and very inviting.
So what should you do?
First when looking around those wonderful model homes, you should make sure that the salesperson clearly tells you what the base price is and what are the amenities, fixtures etc that are included in it.
Check if it’s freehold or leasehold.
If you are interested in upgrading the property for better carpets, bath taps etc, ask them how much that would cost. Don’t be afraid to speak up, this is to be your home and it’s your hard earned money that you’re investing.
You will often find that the builder’s upgrade costs are not always a bargain price. If you feel that the price they quote is too high, then don’t hesitate to ask what it would cost to upgrade the home on your own, after purchase. Make sure that you can.
Just because for a first time buyer the actual purchase price of a new home may not be possible to negotiate or lower, this does not apply to the price of upgrades, as these can definitely be negotiated, especially with a developers that have a few unsold homes on their books.
Word of warning, before buying a home that the builder has been unable to sell, find out just why it has been unable to be sold, there might be a very good reason for this and you don’t want to lumber yourself with a Dud property. It might not be a good bargain because it has a defect or is situated in a wrong position, thus, making it difficult for you to resell it later on.
Once your happy then look at your loan options. Never be hurried or pressured.
You will find that often loan approvals with the developers in-house lender is generally easier than in the case of an outside lender, due to the fact that the lender knows and has approved the developers project. Also with the developer’s lender the cost of any improvements or upgrades can be financed in such a way that you need not pay the whole amount in cash.
Go out there, take your time and do your homework. And remember to always ask questions.
Good Luck!
