Buying a New Home

Whether you are a first time buyer or are simply looking to change your house, there are things you need to know about buying a new home. The first thing to consider is your available budget. You need an accurate idea of the size of mortgage you can obtain before you start your search, so begin by visiting a number of mortgage providers and obtain a written ‘offer in principle'.

Don't forget that as well as the cost of the property and the mortgage repayments, you should also budget for mortgage payment protection insurance, legal fees involved in the purchase, surveyors' fees and removal costs. Now that you know your budget and have a clear idea of the size of accommodation you require, think about location.

There are good reasons for buying a new property - not least because all the appliances (if included) are unused. The property will come with a builders guarantee - usualy for ten years- and more importantly, deals can be had!

The developer/builder may offer 'off plan' deals and these can mean a big saving on the price as they will be keen to show their backers/financiers that the development has good potential and will be keen to sell the units as soon as possible. Many will offer deals on stamp duty or carpets and fittings - all helpful when counting pennies becomes paramount.

You will know your own requirements relating to the proximity of schools, shops, hospitals, and stations, but you need to be aware of noise levels in the locality as well as other considerations such as local crime and disorder levels, efficiency of public transport, the reputation of the local authority and its LEA. Does the area lie directly beneath a flight path from a busy airport and what local development is planned? A country cottage may seem to be your dream house when you first buy it, but what happens when jumbo jets fly over every ten minutes and all the fields around you become housing estates. So be careful to check these things out.
There are a number of ways to find a property. Most people use the services of an estate agent. Locate local agencies through Yellow Pages or the internet and register your interest. Be very specific as to your requirements or you will be inundated with unsuitable properties, as the agents will send you details of everything that seems to meet your criteria. You may be interested in a newly built property or perhaps in something more specialised such as warehouse conversion on a docklands site. Riverside properties or barn/mill conversions can all be found on the internet sites of specialist agents, so try searching yourself. You may find that you can get some good deals in this way – particularly with new builds.

When you view suitable properties, go during daylight in order that you may notice structural problems. Look everywhere, including neighbouring gardens to gauge the standard of the neighbourhood.
When you decide on a property, the next stage is to make an offer to buy it. It is important to make sure that this is ‘subject to contract' allowing you to withdraw if necessary. The agent will expect an offer lower than the asking price, so be adventurous – the vendors might be desperate to sell and you may get a bargain. When your offer is accepted, insist that the house is ‘taken off the market' to avoid being gazumped. Next have the property surveyed. Generally, there are three types of house survey:
• Valuation – for your mortgage lender's benefit
• Homebuyer – a very basic process that will give you a professional assessment of the building
• A Full Structural Survey - Quite expensive, but very necessary in the case of older houses.
When you are fully satisfied the contractual agreements need to be drawn up and exchanged. Unless you are experienced in the process, you will be wise to employ a solicitor to carry this out on your behalf. Contracts will be exchanged and you will need to pay an agreed percentage of the purchase price. Completion of sale follows with full payment, and the house is yours.