RG Law explores the behaviour of new build buyers and finds they are asking more questions, doing extra research, and turning to artificial intelligence (AI) to review legal reports and generate further enquiries.
They also report that new build buyers are more cautious and are increasingly turning to AI prior to the exchange of contracts.
“We are seeing a significant shift in buyer behaviour. New-build purchasers are asking more questions than ever before and are carrying out far more research before they commit.
“Many clients are now taking legal reports away and putting them through AI platforms to identify additional questions or highlight areas they may not fully understand. Buyers want reassurance that they are making the right decision and that every aspect of the purchase has been properly considered.
“That reflects the wider market. People are committing significant sums of money and, in many cases, reserving a property months before it is ready to move into.”
Holly Meek, Auditing Manager and New Build Supervisor, RG Law
Holly also proceeded to mention that buyers are now showing concerns about snagging, restrictive covenants, estate management and completion timescales, which could be due to media coverage and influence about new-build quality.
“One of the biggest challenges for off-plan buyers is uncertainty. Many are being asked to exchange contracts before they have secured a final mortgage offer and before they know what lending conditions may look like when the property is completed. At the same time, deposits can often exceed 10%, which naturally makes buyers more cautious and more likely to seek additional reassurance before committing.
“One issue we see regularly is buyers becoming concerned that they could lose their reservation if certain milestones are not met within very tight timescales. In reality, we rarely see reservations withdrawn, but the concern itself creates unnecessary stress throughout the transaction.
“Everyone involved is working towards targets and deadlines, which is understandable. However, there can sometimes be a gap between the timescales being communicated to buyers and the realities of what can actually be achieved, particularly where related sales, mortgage approvals or shared ownership requirements are involved.
“More transparency around timescales would benefit everyone. Buyers need realistic expectations from the outset so they can make informed decisions without feeling under unnecessary pressure.
“It’s important to remember that buyers are making one of the biggest financial commitments of their lives. Many are committing substantial deposits and entering into contracts months before they move into their new home. Of course, speed matters, but so does understanding.
“Buyers need time to review the legal documentation, ask questions and feel comfortable with what they are signing.”
Holly Meek, Auditing Manager and New Build Supervisor, RG Law
She also mentions a rise in concerns over off-plan purchases, where buyers are being asked to exchange contracts before knowing what mortgage products will be available.
