Real Estate

Buying a home off-plan: Everything you need to know

As we always say, buying a home is always a good option. But to buy an off-plan home you must take into account some aspects. In today’s article the team of will tell you about that so that your purchase is victorious.

Off-plan housing: What should you know?

The new constructions offer the buyer better qualities, services such as garage, storage room and common areas or the possibility of paying the entrance in a staggered way. If you plan to sell your home quickly, we buy houses in Riverside, Los Angeles, Orange County, and so on. All you need to do is head on to SoCal Home Buyers and find out how you can get the best deal and close within 7 days. 

However, this practice also involves greater risks than acquiring a finished home.

First, because buyers have to shell out large amounts of money up front. Second, because there can be delays in delivery and even suffer breaches of the contract.

Here are some essential tips for making a good off-plan home purchase.

1 Compare offers

Before launching to buy a new home, compare the prices offered by the promoters based on the location, the square meters or the qualities. The usual thing is that the price range is similar, so if you come across a value that is very different from the average, do not trust.

2 Find out about the promoter and his career

Not all companies are the same and the final result may depend, to a large extent, on this. Once the house has been chosen, it is important to know its seller: company name, address or registration in the commercial register. On the other hand, it is convenient to inquire about their experience in the sector. That is, if it is solvent or if it’s previous promotions have met the stipulated terms and qualities.

3 Penalties in case of delay

It is also important that the contract details what the type of penalty will be in the event that the company fails to meet the delivery deadline. Lack of express fixation could hamper the chances of claiming. Therefore, make sure that this point is also in the document and do not accept clauses that exempt from liability for delays “outside the promoter.”

4 Avoid cooperatives

When purchasing an off-plan home, you can do it through a developer or a housing cooperative. Cooperatives offer lower prices and the ability to make changes as the project progresses. However, they can also incur delays, spills, and even bankruptcy. Therefore, we recommend that you discard this type of regimen.

5 Verify that you have the necessary licenses

The most important thing is to check that the development has the necessary planning licenses to begin construction, such as works. The term of its concession may take more than a year, so we recommend that before signing any type of contract you verify if the promoting company has it or, at least, has requested it.

6 Learn about energy certification

The building’s energy certification is a very important factor. This index shows us how efficient our home is, which will have a direct influence on saving energy in the home. It is easy to recognize, since it is established by a scale of letters that goes from A, which measures the maximum degree of energy efficiency, to the letter G, for the least efficient.

7 Read well all the points of the contract

The signing of the contract is one of the most important points in the process. You must carefully review all the clauses of the same and, if you have any questions, consult the seller. If any of the points are not entirely reliable, consult a lawyer. 

As recommended by the Organization of Consumers and Users (OCU), the lack of transparency or the presence of abusive clauses should discourage the purchase of a home.

Read More: ehsaas program 2021 online registration form

8 Make sure the price and date are accurate

You must demand from the developer that the delivery time is specified in the contract and that the documents define the final price of the house, including VAT.

9 Accredits ownership of the land

Before making any type of deposit, you must check that the developer is the owner of the land on which the new home will be built. To do this, you must go to the Property Registry and request a Simple Note. It is also possible to carry out this procedure online through the Online Registration services.

10 Make payments through the bank and demand a guarantee

When paying the stipulated amounts, we advise you to always do it through bank transfer. Leave proof of your name and surname, the amount paid and keep the proof of payment. The developer must have an account where he stores all the deposits of the future owners and that he only uses for expenses that the construction of the house itself may entail.

In the same way, it is essential to demand an insurance or bank guarantee of the advanced sums that guarantees the return of the same in the event of delays. Or, directly, that the work is not carried out. 

Advantages of buying off-plan housing

Buying off plan offers numerous advantages to take into account when moving to another home. Here we leave you the main advantages.

Economic savings

Without a doubt, it is the main advantage. In general terms, buying an off-plan property can save up to 10, 15% of the final price. By agreeing on a fixed price at the time of purchase, the revaluation that usually occurs during the time that its construction lasts is avoided.

Enjoy a personalized home

Another of the great advantages of buying off plan is the possibility of acquiring a personalized home. Most new construction developments offer their clients the possibility of making off-plan modifications to adapt the property to their needs and tastes.

Also, the fact of being able to monitor the evolution of the work will allow certain changes to be made on the fly if something does not quite fit.

Up to ten year warranty against defects

The law requires that newly built homes have three types of guarantee against different defects. The first one, lasting one year, covers completion or finishing failures. The second, valid for three years, offers protection against damage caused by defects in construction elements or facilities that cause non-compliance with habitability requirements.

Finally, the so-called ten-year insurance protects against material damage caused in the building by defects or defects that affect the foundations, supports, beams, floors, load-bearing walls or other structural elements that directly compromise the mechanical resistance and the stability of the building. It is very important to note that these guarantees come into effect when the work is delivered, not when the home is purchased.

Greater ease of payment

Unlike a conventional purchase, which requires saving around 35% of the price of the home, buying off plan offers greater flexibility when paying, so it requires less financial effort.

Generally, the buyer must pay 10% of the price when signing the contract of sale and another 10% in different installments that are distributed throughout the time that the construction of the house lasts.

Better materials and more modern developments

Acquiring an off-plan apartment means betting on a property built with the most advanced materials on the market and services based on energy efficiency, something that can mean very important savings in the monthly bill. In addition, new-build flats are usually located in modern urbanizations that have spectacular common areas to enjoy free time: swimming pool, paddle tennis court, social room, etc.

The law acts if something goes wrong

Currently, there is legal coverage that protects the future owner in the event of an unforeseen event during the off-plan home buying process. In this way, all payments made by the buyer during the construction of the apartment must be entered into an account exclusively for that purpose. Which is why the team of Capital Smart City makes sure to have all legal notices at hand. 

Choose the apartment that interests you the most

Buying an off-plan apartment also makes it possible to choose the home based on taste or needs (with a certain orientation, height or views, attic, ground floor with garden, etc.). Of course, the speed in the decision-making process is key to achieving this since the best properties are usually the first to be sold.

What did you think of this article? Was it useful or interesting for you? If you wish, you can leave your opinion in the “Comments” section of our Blog.

Remember that if you have to carry out any real estate operation, the best place you can go is Sky Marketing. The company has the most trained and 100% reliable professionals to accompany you in the process. We will wait for you!

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