Buying a new build home: the five-step process
You’re at the beginning of the search for a new house and you might be wondering what on earth the process of buying a new-build home is. Well, you’ve come to the right place.
There are countless advantages of purchasing a new-build over an older home. There’s no upward chain so you won’t be waiting for someone to sell before you can move in, and with many of the fixtures already in place you don’t need to worry about going over budget when making your dream kitchen a reality.
But what exactly are the steps involved of buying a new-build home? We’ve outlined the process for you.
Step 1: Get your finances in place to buy a new home.
The first thing you need to do is gather some guidance from a mortgage adviser so you know roughly how much you will be able to borrow from a lender. You can also complete an online mortgage calculator that will guide you and it takes less than five minutes.
It is useful to get a mortgage agreement in principle from a lender before you begin the search for your perfect home. This will indicate how much you will be able to borrow based on your income. Once you have this, you can take it to the developer to show that you can afford the property.
Step 2: Find the new-build house you want to buy.
By far the most exciting part – finding the perfect new-build home for you. The first step is to find a development you can see yourself living in. Whilst doing this, you can research the amenities and local area to make sure the location is right for you.
There are already many incentives of buying a new build home which makes them so popular, such as they come with warranty, and they are energy efficient.
If you are buying a home from a developer, you can ask what other incentives they are offering.
For example, this two-bedroom flat at Grandhome includes free flooring and is available with the Government backed Help To Buy scheme or 5% deposit assistance.
AJC Homes two-bedroom self-contained ground floor apartment at Grandhome, £169,000.
If you enjoy being outdoors and going for local walks, make sure you ask about the landscape plan to ensure there are a plenty of green spaces, something we don’t run short of in the Grandhome community.
Grandhome community
Once you find a development that ticks all the boxes for what you need, you’ll be given a tour of a show home or a marketing suite.
Step 3: Making an offer for on your new build home.
Once you are happy and you’ve found the perfect home, you can make an offer and pay a reservation fee. This often ranges from £500 upwards and would be taken off the final purchase price when the sale is complete. Do be aware that this fee is usually not refundable if you decide not to go ahead with the sale.
You can now start to have a think about how you would like your dream home to look. Whether you want to create an additional open plan living area or move doors and walls to create extra space, no task is too big for the Malcolm Allan team at Grandhome.
Malcolm Allan homes at Grandhome
Things to keep in mind:
- Always remember that even though you have made an offer, nothing is final until you exchange contracts. This is the final step of the process and will be done via your solicitor
- Once an offer has been made, the seller should always take the property off the market
Step 4: Appoint a conveyancing solicitor.
Similar to any other house purchase, there are legal requirements that only a conveyancing solicitor can take care of. Many developments can recommend or appoint a solicitor to you, but you can also choose your own.
Your solicitor will take care of numerous aspects of the sale, to ensure all parties can go ahead without any problems.
You will pay your deposit via the solicitor and they will negotiate your entry date and manage the funds to purchase the property.
Step 5: Applying for a mortgage.
At this point you should congratulate yourself – you’ve picked your new-build home and the process is almost complete. It is now time to secure your mortgage and get a formal offer of finance from a lender. The mortgage lender will send a surveyor to conduct a formal valuation.
Step 6: Agree a completion date, pay your deposit and exchange formal contracts.
When purchasing a new-build home, you will exchange contracts several months before your entry date. At the same time, you will pay for your deposit. You may hear the term ‘long-stop’ date at this point – this is the date the home needs be completed by. The solicitor you have chosen and the seller’s solicitor will then exchange formal signed copies of the contract.
Finally, your solicitor will register your new build home with the Land Registry and pay Land and Buildings Transaction Tax on your behalf. Wondering what on earth Land and Buildings Transaction Tax is? We have a specific guide on LBBT here.
Congratulations, you are ready to move!
Ready to start looking for your new build home near Aberdeen?
For those looking for a new build home in Aberdeenshire, the Grandhome community offers countryside living and multiple benefits on the outskirts of the city of Aberdeen, which aims to deliver unprecedented standards. View our homes for sale now or head over to our FAQs to read more about the development.