New Build Homes

publication date: Nov 10, 2011
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

New Build Homes

Property House Prices

We regularly answer all sorts of consumer property questions for FREE via our Property Forum.

This is one of the many consumer property questions we have answered recently:-

Q - We are in the process of buying a new build property. We have agreed a 5% deposit paid by the builder and we have negotiated a further discount of £10,000 as we can put down 20% deposit and are chain-free.

New build properties usually have a premium on top of the average price paid for a similar property in the area. My question is how much is this premium in percentage terms and have we negotiated at a good price?  READ THE FULL QUESTION HERE

A - Property prices (and therefore builders premiums) are bespoke to a street, area and individual property, so to answer your query properly we would need to do a full desktop price valuation which costs £99 + VAT.

However, there are some things we can help with which is the builder's premium. Typically this can be up to 20% of a similar spec for a second hand home nearby. For example, a three bed semi detached second hand home might be £200,000 and the equivalent new build might be up to £240,000.

At the moment, due to the credit crunch builders don't and haven't been able due to some lending restrictions have a premium in the first place, so it might be that you haven't been charged a premium at all.

To find out if you have got a 'good deal', you'd need to compare the price you have paid for your home to a similar spec property that has sold nearby.   VIEW THE FULL ANSWER HERE!


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