The reservation process when buying a brand new home

Buying a new build home can be an exciting experience, but it can also be a confusing one. One of the things that can cause confusion is the difference between pre-reservation and reservation. I will do my best to explain the differences between the two so you can make an informed decision when buying your new home, if there is anyone working with builders in the industry that has anything to add feel free to leave it in the comments.

When you pre-reserve a property, you are essentially putting your name down to get first refusal when the property is released. It is important to note that this does not mean that the builder is committing to giving you the property, nor are you committing to buying it. Typically, you will pay a fee of around £100 to put down a pre-reservation on the property.

With a pre-reservation, you often find that the price of the property has not been finalized. This means that you are reserving the property while you are waiting to find out the exact cost and what the price is going to be. In certain scenarios, such as when using different incentives from the builder, like an easy move or a home move assist, you may be allowed to pre-reserve before formally reserving the property. However, usually, the price of the property will be agreed upon when the full reservation comes out.

Once the house is released, you will have the opportunity to reserve it. This involves having a reservation meeting in sales office with the sales agent. They will go through everything in the contract for the house you are buying. This includes expected entry dates, the price of the property, any upgrades you need, and what is included as standard. Once you reserve the property, it is just like having a formal offer accepted in the open market. The builder has accepted your offer to buy the property, and it is time to get your finances set up and formally apply for the mortgage. At this stage the timescales can be tight. Because of the strict deadline builders work with they usually expect missives to be concluded within 4 weeks, however In my experience this is flexible.

In summary, the key differences between pre-reservation and reservation are that pre-reservation gives you first refusal but does not commit you or the builder to anything, and the price of the property may not be finalized. Reservation, on the other hand, involves a formal offer accepted by the builder, with all details, including price, agreed upon.

If you have any questions about pre-reservation or reservation, the sales agent will be happy to help you. Buying a new build home is a big investment, and it is essential to have all the information you need to make the right decision for you.

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