Buying off plan means agreeing to buy a new build home before it’s finished. But is it a good idea?
As you’d expect, there are pros and cons to buying off plan properties. You get a brand-new home, and often a say in the location and finishes. But there’s a longer wait time compared to buying resale properties.
In this article, we explain how the process works, and delve into the benefits and drawbacks. Plus, we’ll share two ways we can make it easier for you.
Buying off plan meaning explained
Buying off plan means agreeing to buy a home before it’s finished, sometimes before building work has even started.
Instead of going to a house viewing, you’ll choose your house based on floor plans, a site plan, and the specification. Sometimes, there’s even a CGI visual or a show home you can view, similar or identical to the house you’re buying.
The process begins once you reserve the off plan property, but you won’t move in until it’s built. The wait to move in is usually longer than buying a regular resale home. But on the bright side, you’ll be the very first person to live there.
Side note: Legally, you’re only committed to the property once you exchange contracts, not when you reserve the plot.
The pros of buying a house off plan
There are several benefits to buying new build properties off plan. You tend to get more choice and flexibility over the location and look of your home.
Let’s have a look at the upsides:
- Greater choice. If you reserve early, you get a greater choice of things like the site location, outlook, and garden size.
- Personalised touches. Depending on the building stage, you might get the opportunity to pick your kitchen, bathroom, and tiles, rather than inheriting someone else’s style.
- Brand new. You gain peace of mind from being the very first owners and residents of the house. Plus, warranties cover many new builds. For example, every Genesis home includes a two-year warranty and a ten-year LABC warranty.
- Chain-free. One of the most unpredictable parts of the home-buying process is the timing. While buying off plan may mean you wait longer, your move-in date isn’t dependent on sellers waiting to move.
- Time. The longer wait time can actually be a blessing, affording you breathing space to save up or sell your own home.
The cons of buying property off plan
Naturally, there are certain trade-offs when you buy off plan properties, mainly concerning the longer wait time.
Here are the risks to consider:
- Delays. Since builders are still working on your home, factors like weather, materials, and labour can impact the completion and move-in dates.
- Mortgage offer. Not all mortgage lenders offer mortgages on off-plan properties. Plus, offers only last up to six months. If building runs over, you might have to reapply for your mortgage and there’s no guarantee your lender will approve it a second time.
- Uncertainty. You don’t know exactly what the finished home will look like.
Buying property off plan: 6-step guide
The process of buying off plan starts with choosing a plot and paying a reservation fee.
Here’s a step-by-step guide that leads you all the way to collecting your keys:
- Choose a plot. Look at the floor plans, site plan, and show home if available, thinking about the view, garden, and house position.
- Pay a reservation fee. This fee takes the plot off the market. Fees vary depending on the developer ranging from around £500 to £2,000.
- Pick your finishes. You might be able to choose your kitchen, bathroom, and tiling, or pay extra for upgrades.
- Secure your mortgage offer. You’ll need to instruct a solicitor and speak to a mortgage broker or adviser to secure a new-build mortgage. Make sure you check the expiry date against the estimated completion date.
- Exchange contracts. Within a few weeks of reserving your plot, you’ll pay the deposit. The purchase becomes legally binding. Your completion date will be set ‘on notice’ rather than a fixed date since it isn’t finished.
- Complete. Once your home is ready, you’ll get notice to complete. You’ll pay the final balance, collect the keys, and your warranties will kick in.
Best routes for buying a new build off plan
We have two schemes that tackle the largest off plan concerns: securing the plot you want, and selling your current home.
Our Early Bird Scheme is a great way to get ahead on upcoming developments like our new build homes in Carlisle. You’ll pay a £100 deposit, which puts you first in line for a plot.
Once we release the plot, you have seven days to decide if you want to go ahead. If you do, the deposit comes off your reservation fee.
If you need to sell your house first, our Part Exchange Scheme might help. In this instance, we buy your current home, and you avoid paying real estate fees. It also means you go chain-free into the process, and you can stay put until your new home is ready.
FAQs about buying a new build off plan
What is off plan property?
Off plan property refers to homes you agree to buy before they’re finished, sometimes even before building has started. Instead of a viewing, you choose your home based on new build floor plans, site plans, the specification, and show homes.
Is buying off plan a good idea?
Buying off plan can be a good idea if you want a brand-new home, covered by warranties, and more say in the plot position and finishes. It’s ideal for buyers with some flexibility on when they move since building work can shift completion dates.
Buy off plan property with Genesis Homes
Buying off plan means you get greater choice, a brand-new home, and a longer waiting period to plan your move. Our Early Bird Scheme and Part Exchange Scheme solve common concerns over the process.
If you have any questions about either scheme, get in touch with our friendly team today.
Browse our new build homes in Cumbria & Lancashire to see what’s available.