Confirming Your Property Purchase Price

What you need to know

When buying a new build home, you may well have the opportunity to choose the fixtures, fittings and finishes you would like the home builder to apply to your home before completion. This is especially the case if you are buying off plan. For that reason, the final purchase price of your home, may end up being more than the initial price displayed on the property developer’s website.

The solicitor acting on your behalf will be able to examine a draft contract, stating the final cost of your property and all the features it includes, in order to ensure you are paying the right amount for the right standard of property. If necessary your solicitor can raise any enquiries with the home builder at this stage before the final version of the contract is signed.

It is important to go through this process because once the contracts are signed and exchanged, the sale arrangement becomes legally binding, so you need to make sure everything is in order.

Once you have chosen all the elements of your home and the price is confirmed your mortgage company can arrange for a mortgage valuation survey to be carried out on the property to confirm its final value.

For more information on the process of buying off plan and confirming your final purchase price, we recommend this article from This Is Money, which covers how mortgage lenders handle buying of plan and the change in costs and timescales it can incur.

The typical payment for a new build home happens as a series of staged payments. Initially you will pay the reservation fee to secure your chosen plot. Next you may need to pay a small deposit in order for the homebuilder to being the building process on your plot although at this stage, this deposit is not legally binding.

The next payment is often the exchange deposit, this is the sum of money most people mean when they refer to their house deposit. Usually it is 10% of the purchased price and once payed, you are then legally bound to complete your purchase.

Finally, when everything is ready, you will pay your completion price, less all of the above fees and deposits which should be subtracted from the total.
 

Publish date: 13/10/2017