When buying a home, you could buy a ready house or one under construction. Buying a property under construction, often referred to as off-the-plan buying, is a sure way to save costs. So, how does the arrangement work? Below is a comprehensive guide on off-the-plan buying. 

What is Off-the-Plan Buying? 

Off-the-plan buying is an arrangement where a real estate developer sells property under construction. Ideally, the buyer makes an upfront payment and moves into the property once the developer completes construction work. Off-the-plan buying benefits both parties. The developer raises funds; thus, they do not need construction loans. On the other hand, the buyer buys the property at a fraction of its selling price when complete. 

You will need to consider the following when buying an off-the-plan property.

Examine the Developer's Credentials

Your immediate concern should be the developer's ability to complete the construction work. Therefore, conduct background assessments on the developer. For instance, have they sold off-the-plan homes in the past? Does the developer have the licences needed to conduct real estate business? What is the developer's reputation? This evaluation will help build your confidence in the developer. Besides, it prevents you from working with unscrupulous developers who might not complete the construction work. 

Check the Construction Plans

Examine the construction plans to determine what you will be buying. For instance, what will the complete building look like? What is the size of the house? What roofing will the developer use? Will the developer install internal fixtures such as sinks and cabinets? Are amenities such as swimming pools, driveways, garages, fences and patios included in the sale? It will help you determine whether the property is reasonably priced. 

Assess the Paperwork 

You will need a conveyancer or real estate agent to go through the paperwork. Most developers offer standard contracts. However, you could negotiate the terms to suit your needs and interests. For example, check whether the purchasing agreement compels the developer to complete the construction work within a specified period. Moreover, check whether the developer expects you to make a lump-sum payment or instalment payments. Preferably, opt for instalment payments since they compel the developer to complete the construction work. Examine the contract to establish whether the developer can customise the property to suit your needs. For example, you might need a basement or swimming pool. Finally, if the property is located in a strata development, assess the bylaws to know the living regulations. 

When buying off-the-plan property, examine the developer's credentials, evaluate the construction plans, and negotiate the selling contract. For more information, contact real estate agents near you.