Each type of property brings different selling challenges.
Selling a new build is no exception.
Read on to learn more about what these challenges are and how to overcome them.
What is a new build property?
A new build property generally refers to a property that hasn’t been lived in yet.
They can be one-off buildings or parts of larger new build estates build by development companies. However, generally, it’s the latter which are referred to as new build.
Can lived-in houses be new builds?
The phrase ‘new build’ is also often extended to include lived-in properties on the same estate as those that haven’t been lived in.
In other words, someone might have lived in a property briefly and sold it before the rest of their estate’s new build properties are occupied.
How do developers sell a new build house?
New builds are often sold directly by developers. They usually do this with their own team using a showroom and local advertising.
Some developers use estate agents to market them, too. They might use several different estate agencies to achieve scale and create competition.
Developers’ and estate agents’ success in selling them largely depends on pricing, which is more difficult to establish than for regular property.
However, many buyers prefer new houses over old ones. And there are sometimes government-backed financial schemes for newly built houses, too.
How soon can you sell a new build house after buying it?
If you have purchased your house with a regular mortgage, you can on principle sell a new build house immediately after buying it.
However, some issues might hold you back.
For example, experts recommend that you wait at least six months. This ensures that the title deeds are correctly updated.
And you are also less likely to make a sizeable loss or even fall into arrears.
And some lenders are reluctant to offer a mortgage on a house that was so recently bought by someone else. So, you may struggle to find a buyer.
Selling a new build yourself
Selling a lived-in new build property can be difficult.
The main reason for this is buyer’s preferences for similar properties on the same estate, which have several advantages:
- They haven’t been lived in (i.e., will likely be in better condition, not personalised)
- They have no property chain
- They have no option to resolve snagging issues.
And, more generally, potential buyers will feel less of a sense of certainty. (Current owners leaving a property after living in it only briefly might not inspire confidence.)
Sellers will effectively be selling in a buyer’s market.
Do I need to sell a new build house back to the developer?
It depends on the contract, but in most cases, no.
If you’ve been sold the house with no clause that you must sell it back to them, then you can do whatever you wish.
Some developers require that you sell the house back to them. This could apply if you sell within a specific timeframe.
You should confirm whether that’s a condition of the contract you signed.
In this case, you should consult a solicitor. But you may be forced to honour this arrangement.
Do new build properties hold their value?
It varies. New builds typically decrease in value in the first few years after purchase. Being lived in reduces potential buyers’ attraction.
But over a longer period, new builds have been known to increase in value. So, it could end up giving you a return on investment.
