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Questions to ask the builder

When you buy a new home, keep in mind you can ask as many questions as you want and take as long as necessary before writing out that reservation cheque. It is possibly a good idea to request that the particular property be held for you overnight, so you can have more time to consider the property before making a final decision to buy.

The Property Misdescriptions Act 1991
Property Misdescription (Specified Matters) Order 1992

It is a criminal offence to make false or misleading statements either verbal, written or by pictures. Individuals as well as companies can be fined for each breach of these regulations. It is prudent to take notes listing all relevant points and answers to your questions and ask the sales person to sign to signify that what they have said is true.

Many of the larger developers have a procedure where you, the purchaser, sign a standard form listing everything you have seen or been informed about the property being offered for sale, including site layouts and drawings. This is good practice and a safeguard for both parties. Click for more information.

Discounts
Developers, especially the larger national Plc. house builders, are always ready to give a discount. Their site sales advisors have a ‘margin’ within which they can negotiate the price you pay. This can be done using “free extras” such as carpets, turfed rear garden, specification upgrades or a cash discount off the original price or perhaps a combination. The amount of discount or ‘incentive’ available is typically 3% to 4% but this can be much more, depending on factors such as timing of the builder’s end of year date and whether the particular property is a “stock” (finished) property. In such cases discounts can be very generous. Many of the ‘buy to let’ investors are aware of this timing and get the best discounts they can, often negotiating up to 25% off each property by purchasing several properties in one deal. These days, only a complete fool will pay the price on the price list! If you cannot get a discount walk away.

Reservation fee
Is this amount included as a contribution or part payment towards the cost of your new home? Let your solicitor know how much you have paid.

Part-exchange policy
Again most of the larger developers will have a part-exchange policy where you can ‘trade-in’ the value of your existing home against the price of the new home. However, whilst this has the advantage of saving you both the hassle and added expense of selling your existing home yourself, the builders know this and many will only give you 90 to 95% of any valuation on your existing home. In addition, most part-exchange deals restrict or take away the possibility to negotiate a discount. Another factor to consider is that to qualify for a part-exchange, you must be trading up to a higher priced property, usually 30% more than the value of your existing home.

How are the properties selling
Look at the site plan to see how many homes have sold. Ask the sales advisor how long they have been on site. Remember that some may have been early reservations purchased ‘off-plan’. It is also not unknown for builders to put ‘Sold’ or ‘Reserved’ signs in the windows of several plots to give you the impression that the development is selling well. Sometimes these are the social housing properties, which have been technically ‘sold’. Others are phantom sales which can often mysteriously “fall through” a few days after you have expressed an interest.

Mortgage broker tie-ins
Don’t be pushed into seeing the builder’s recommended mortgage broker. They can give the builder and sometimes the sales advisor, a share of their commission for each referral resulting in a mortgage. It will not cost you anything to use the builder’s broker, but if you do, negotiate with him to get a share of his commission, or again, walk away. Remember he needs your business and there is enough commission for everyone.

End of year figures date
This is the most critical thing you need to find out, especially for the large national Plc. builders. To find out more click on the link.

Floor areas
Ask for the floor areas of the properties you are interested in. This will give you an idea of value for money between different types, in cost per square foot or metre. It will also give you a quick way of calculating carpeting costs, which will show you the true value of the carpet deal being offered. Better still; ask if you can have a copy of the builder’s working drawing (ground and first floor plans). It is unlikely you will be given this but it is worth asking.

What upgrades or extras are available

Many builders and developers offer “upgrades” or “extras” under various names. On reservation it is better to find out what is on offer and how much these are likely to cost. You could even get them at no cost, as an “incentive” to buy. Be aware that the builders charge considerably more for extras than it would cost if you arranged the work yourself.

What choices/selections are available

Nearly all builders give prospective purchasers a choice of kitchen units, worktops and wall and floor tiling. If you have any particular preferences it is worth asking if these could be accommodated during the building process. Customisation of a new home could also include choice of decoration colours, internal doors, sanitary ware, etc. In fact you may be able to personalise anything on some developments, but be aware this may come at a cost. This could also be limited by the current stage of construction of your home.

Specifications that are included as standard
The builder should be able to provide a list of the 'standard' specification. It is important to know what you are actually buying. The quantity of wall tiling and floor tiling. The inclusion of kitchen appliances, their type and manufacturer. Burglar alarm if any. Type and manufacturer of electrical equipment, heating system, type of windows, fencing etc. If you want to know anything ASK.

When is my new home due to be fully completed.
On reservation, it should be possible for the sales advisor to give you an approximate date when the property is due to be finished. This is not “cast in stone” and will be subject to weather and other delays that the builder has no control over. However always get a date and keep visiting the development to see how your new home is progressing. This is especially critical if you have sold your existing home and are at the head of a 'chain'.

When is the development due to be completed
This will give you an indication of how long you will have to tolerate living on a building site, with unfinished roads, heavy lorries, mud, dirt, dust and noise to contend with.
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Where are the Social or Affordable Housing properties
These should be clearly indicated on the site plan and in the sales brochure. If they are not, ask which properties are allocated for social and/or affordable housing.

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