Planning on buying a brand new house?

Regular contributor Trevor Cooper looks at the benefits and pitfalls when purchasing a house at the planning or construction stage.

LAST week I looked at refurbishing houses, this week's topic is buying one brand new.

Buying a property off the plan or in the course of construction is a popular option.

It assists the builder with cash flow and usually allows buyers to have some influence on the finishing touches.

There is also a saving on the buyer's legal fees as the 3% document duty is based on the value of the building at the time of the conveyance, not the cost or market value of the finished house or flat.

One drawback is that the buyer needs to budget for living elsewhere whilst building work progresses, which can be complicated for someone needing to sell a property in order to buy another in the early stages of construction.

Mortgage lenders can also be wary about lending money on an unfinished project wholly dependent on the builder completing the job and doing it properly.

But there is a tried and trusted system in place that involves a standard building contract between the buyer and the builder.

This includes a detailed building specification with particulars not shown on the approved plans, such as decoration, the exact kitchen layout, type of appliances, flooring if that's included and how the gardens will be left.

It is probable that a mortgage lender will require a survey to be carried out even on a brand new house. This might seem unnecessary but some buyers take this a stage further and employ a surveyor to regularly inspect the site to check on the standard and progress of the work.

A building survey looks at the structural integrity of the building but will not generally include a snagging list. Snags are to be expected in any new house and tend to be relatively minor defects or omissions from the building contract that the builder will attend to as part of a snagging list.

Not that everything is covered by this arrangement. Natural occurrences such as plaster drying out, for example, produces condensation and will leave hairline cracks along skirting boards and down corners where studwork walls meet block-built walls.

The new owners will be left to make good and, as unsightly as these cracks may be, it is worthwhile waiting a year before attending to them to ensure the drying out process has run its course.

Keeping a new house well ventilated is also advisable whilst drying out to prevent condensation developing into mould.

A surveyor will help with compiling a snagging list if asked, however, there are plenty of websites with advice on what to look for when buying a brand new house. Many of the suggestions relate to English developments and, fortunately, Guernsey's reputable builders cannot be accused of the dire transgressions some websites warn about. Nevertheless, there are some points buyers can look out for themselves.

Note the general condition of the site – is it tidy and well managed? This is a clue to the builder's attitude, methods and commitment to quality. Remember, however, not to go onto any building site without permission, even outside working hours and even if you have already bought your house that's in course of construction. Stringent insurance and health and safety regulations prohibit this.

It is also worth checking on any of the builder's other developments and perhaps question some owners on their experiences.

Check with the Environment Department if any future development is planned in the area. Permission for more than one house may have been granted in the vicinity and large estates are often built in sections. This need not be a problem, but best to be aware in advance.

If it is a large development, ask when the estate roads and footpaths are due to be completed. You might prefer to wait until all the construction work on the development is completed before moving in.

Ask if you can inspect the new house for snags two weeks ahead of the key being handed over. This will allow time for you to put any defects or omissions in writing and for the builder to agree to and rectify them, hopefully before you arrive with your furniture. Failing that, there is usually a six-month period allowed for dealing with snags – this will be in the building contract.

Access will also need to be arranged for carpets and curtains to be fitted, remembering that wooden floors are best laid before the skirting boards are fitted.

Also ask for a walk-through guide of your new property. Builders are proud of the houses they construct and enjoy sharing their knowledge of where the water stopcock, rodding points, fuse box and isolation switches are. They or the plumbing engineer will explain how the central heating and hot water systems work, although there will be an element of trial and error involved in the early stages to get the settings that best suit you.

The builder will also hand over instruction manuals for the appliances. Be sure to check on the guarantees. Some activate when the appliance is purchased, which could be weeks or months previously if the builder buys in bulk. Other guarantees require registration, which some builders will leave for the new owners to complete.

All this may sound pedantic and more involved than buying a property off the shelf that's ready to move into as soon as the last people move out.

But buying a new house is like buying a new car. You're paying a premium because it is brand new and the opportunity to have everything just right is part of the benefit and appeal of your new home.