Before you buy a newly constructed house...
Make sieve the house agreement you are signing includes a guarantee period because some property sellers use substandard material. Photo by Racheal Mabala
What you need to know:
- If you want to save yourself the hustle of constructing a house from scratch, here is what you need to do before you buy a new house.
- Lastly, Check with the city authorities to know what is planned for the neighbourhood and surrounding areas.
People keep wondering whether buying a newly constructed house is better than building. For those who would rather buy a newly constructed house, Joan Akampulila, a property manager of Smart House property agent, explains some of the important things to consider.
Find a great agent
Akampulira says you have to be sure your agent has experience in new construction and no relationship with the property owner.
“It is important for you to have an agent who represents your interests and can give you helpful advice.”
She adds that some developments have site registration policies that require your agent to accompany you on one of your first few visits for the purpose of guidance.
“Ask your agent to check the site’s registration policy before you go.
Your agent may be able to register you so that you can visit the site at your convenience,” Akampulila says.
Negotiations
She says normally property owners do not like to drop their prices, instead consider asking the agent to pay final costs.
“Builders are often reluctant to set negotiating prices but if you’re considering an offer, ask your agent to research the builder’s negotiating style before meeting them,” Akampulila advises
Signatures
Akampulira says you should not sign anything until everything has been negotiated, agreed upon and written into the contract.
“Documents are very important especially when you’re purchasing a home that is not yet complete, it very important to tell out how the home will be finished.”
She adds that this will help in case the construction is not completed on time and the deadlines for decisions that will occur through the process.
“Verbal conversations are not binding, so everything important must be put in writing and signed by all parties to avoid any dismissal.
“Property sellers often use customised purchase agreement documents which you have to get in advance,” Akampulira says.
Calculate affordability
She says normally what you see is not always what you get. Often the perfect home reflects a mix of standard materials and fixtures, as well as a handful of upgrades.
“When touring the model home, ask for clarifications. The important thing is to know exactly what you will be getting, what is available and, of course, what it will cost.”
She adds that to be on a safe side, ask your agent to help you get a list of standard features and, if available, a list of common upgrades and their associated costs.
Get a guarantee
Muhammed Kizito, a property agent, says one of the most important issues to consider is a guarantee. Some property owners tend to use substandard material and the buyer ends up making losses after a short period of time.
“Your purchase agreement documents should specify a completion date, however, many builders add provisions that make the completion date dependent on permit approvals from the authorities,” Kizito says, adding: “Find out what is covered because many new homes come with a warranty from the owner, but not all warranties are created equal. Know what is and is not covered and for how long.
The owner should be able to provide details on which part of the home is covered by which policy.”
Lastly, Check with the city authorities to know what is planned for the neighbourhood and surrounding areas.
