What to Expect When Buying Property from a Property Developer

May 6, 2024

George, nestled amidst the majesty of the Outeniqua Mountains and often seen as “The heart” of the Garden Route, offers an idyllic lifestyle that’s attracting property seekers in droves. 

If only buying property were as easy as shopping online, you’d have 10 homes by now, wouldn’t you? But it’s not quite just adding a home to a shopping cart. So, If you’re considering buying your home from a developer, here’s a short roadmap to help you to navigate this exciting, yet nuanced, journey to homeownership:

What’s the draw?

Firstly, what draws many towards developer properties? One key advantage is affordability. Off-plan purchases, where you buy direct from the developer, meaning no transfer duties are payable This allows you to secure your dream property within a budget, especially in a thriving market like George. Our thriving Diepkloof development is currently busy with the final construction phase of our last units, with the majority already sold.

Now, let’s delve into the steps involved in buying from a developer:

Research, research, research

Imagine you’re starting your journey as a chef, you’ve been given simple recipes to start with, but you don’t know where to start. What do you do? You jump on Google and start researching “How to…”. So why would you tackle buying a home any differently? 

Begin by thoroughly researching the developer’s reputation. Look for a company with a proven track record of quality construction and timely delivery. Explore their previous projects, read online reviews, and seek recommendations from satisfied customers. We are fortunate to have had Earp Construction bring their expertise and vision to the development of our beautiful Mooikloof Country Estate.

Look at show houses and floor plans

Before you buy anything, you always imagine yourself wearing it, driving it or living in it. For property development, show houses are it. Most developers offer show houses that showcase the potential of your future home. This allows you to experience the layout, finishes, and overall feel of the property firsthand. It’s important to carefully examine floor plans and enquire about customisation options, if available. Our Diepkloof floor plans are thoughtfully designed to offer you the best possible living experience. Each layout is strategically crafted to maximise space and functionality while providing a seamless flow throughout your home.

Understanding Contracts and Financials

A crucial step involves meticulously reviewing the purchase agreement. Ensure you understand all terms and conditions, including the payment schedule, completion date, and any potential penalties for delays. Seek legal counsel to guide you through the contract’s intricacies and safeguard your interests.

Make your home loan work for you.

Financing a new property often involves applying for a home loan. Working with a reputable bond originator, such as Betterbond, will help you secure the best interest rates and loan structure for your specific financial situation. It’s important to understand the upfront costs associated with the purchase, such as transfer duties and bond registration fees, are also crucial for proper budgeting.

Key considerations for navigating the journey

Here are some additional factors to consider during the process:

Delivery timelines and guarantees

Developers usually provide an estimated completion date for the project, which can help you plan your timeline. However, it’s important to understand that delays may happen, so enquire about potential penalties if the project is delayed. Additionally, ask about the guarantees offered by the developer, such as workmanship warranties and after-sales service, to ensure you’re covered in case of any issues that may arise with the property in the future.

Homeowner Association Fees and Body Corporate Rules

In many new developments, a Homeowner Association (HOA) is in charge of maintaining communal areas and enforcing community rules. It’s important to be aware of the monthly HOA fees upfront and verify that the rules align with your lifestyle and preferences. Additionally, these fees typically cover services such as landscaping, security, and maintenance, contributing to the overall quality of life within the community.

Snag Lists and Handover Process

Once construction is complete, you’ll be presented with a “snag list” to note any minor imperfections. The developer then addresses these before the final handover. Carefully inspect the property during this stage and document any outstanding issues that haven’t been addressed.

Purchasing a property from a developer can be an exciting yet challenging process, but it doesn’t have to be onerous. By conducting thorough research, understanding the home-buying journey, and asking the right questions, you can make informed decisions that will suit your lifestyle and most importantly, your budget.

Open communication with the developer is crucial throughout the process to ensure a smooth experience. With careful planning and well-informed choices, your dream of owning a beautiful 3-bedroom home with a backup power supply can become a reality. 

Our Diepkloof homes are now selling from R2.2m, contact us today.