Buying a new build - what happens?

[1sttimeunicorn]

So I’m a bit confused about something and I’m only getting vague answers from DH possibly because he’s unsure too.

We are thinking about moving from our 3 bed semi. We need a bit more space. Having previously not liked new build houses, we’ve spotted an estate going up nearby and for various reasons (young dc etc) we think a new build might be right for us.

My question probably sounds silly. Obviously we will need to sell our home, but how does it work if you’re buying a new build that hasn’t even been started yet? Do you reserve a plot, then wait and put your existing home on the market closer to the point that it will be ready? What happens if we have people wanting to move in and ‘complete’ but we have no finished house to go to?

Feel a bit clueless. Anyone got experiences to share?

Hi, ex estate agent here! Buying a new build can be a bit of a pain and you have to get the timing right. Best thing to do is talk to the developer. You need to find out-
Has the plot you're interested in been released for sale?
When is it due to complete?

Most builders will only take a reservation if you have a complete chain, but sometimes they'll take a holding deposit and give you a few weeks to find a buyer.

You'll need to let your buyer (and the rest of the chain if there is one) know when your new house is due to complete and make sure they're happy to wait.

Some builders offer a part exchange, where they'll buy your house from you, but you normally get less this way than you would by selling it on the open market.

If the completion date for the new build is a long way off, think about whether you could sell and move into rented. This takes the pressure, but is obviously more hassle.

I've bought a new build, but first saw it as a completed shell (we got to choose carpet and bathroom colours). I'd be worried about committing to buy before it was even up - you'd need to check whether they have to stick to the spec and measurements you liked, and what will happen if its slightly smaller/different than you expected.

Having them buy your old house is well worth considering though - we did that, and while they give slightly less, the savings in other fees, time and hassle, are great! And no worry about lining up completion days in a chain.

Thank you both for responding - that’s very helpful indeed. I feel a lot clearer!