Developer’s extras – Con or convenient?
The number of new build properties continues to rise year on year. In England alone there were 160,230 new builds completed in 2006, half a percent more than 2005 and the south-east in particular remains a hot spot for new development with the number of new build starts increasing by 12% compared to 2005 (DCLG’s House Building: Oct-Dec 2006).However buyer demand has dipped recently due to rising interest rates and the price of new build homes has dropped by 0.3% in January 2007 to an average of £260,249 (Smart New Homes).
In order to attract buyers, the additional services such as furnishing or landscaping offered by house builders and developers are more important than ever. Emily Aklan, who has worked in the new build sector for over 15 years and now operates an independent property finding and sale management service, Property Psychology, comments, “Whilst these extra services can be convenient and time saving options make sure you do not pay over the odds for them. I have seen first-hand developers marking up such services to recoup the costs for a house selling at below the expected market price.”
Most of the major house builders in the UK offer buyers the opportunity to improve their properties or change certain elements from the standard specification before the build has started, during or after completion. For an additional cost buyers can select from a range of products and suppliers to upgrade or personalise kitchens, bathrooms, bedrooms, floor coverings, fireplaces, fixtures and fittings, soft furnishings, conservatories, alarm systems and gardens.
Due to their size and market share, many developers state that they offer a wide range of choice and that their prices are competitive but it doesn’t hurt to shop around. Emily comments, “Everyone wants to stamp they own ideas onto the place they live but you have to weigh up the cost of convenience with value for money. Carefully consider the extra features you want before making a decision; does the choice fit your taste, do you need the work completed before you move in, can you do it yourself, is the quote reasonable, are you happy with the standard of work done so far?”
Emily goes on to say, “I would advise anyone to obtain quotes from independent retailers and suppliers as well as the house builder. Often the choice will be wider, the service will be better and the cost less. Some features such as wall and floor tiling, additional kitchen units and integrated appliances sourced through the house builder can be value for money but always get a price check for turfing, paving slabs, wardrobes, carpeting and vinyl, electrical toys and freestanding appliances.”
If you are thinking about buying a new build property then be careful not to agree to extra features that seem a bargain without doing your own research. Emily comments, “It is common for developers to add a mark up of between 7% and 12% for these extra services and throughout my time in this industry I am still yet to find a house builder who will say what profit they make from the extras. Keep an independent mind and make any extra’s you buy cost effective to you and not the developer.”
For assistance with paying the right price for additional features to a new build property, visit aklanpp.com.