Buying a new-build home feels different from buying an existing house. You buy something that does not exist yet, you pay in instalments, and there can be more than a year between signing and getting the keys. The system is different too: no buyer's costs, but construction interest, and a handover you need to be well prepared for. An overview of the whole process.
How common is new-build?
A caveat first, because it determines how you read the figure: new-build homes are sold vrij op naam (v.o.n., transfer costs included), existing homes kosten koper (buyer pays transfer costs). With new-build, transfer costs are already in the price; with existing homes they come on top. With that in mind: about 4 percent of our own listings of privately sold homes are new-build. Their median asking price is just over €510,000, compared with €475,000 for existing homes. Part of that difference is the costs that still come on top of the price for existing homes.
From registration to purchase
For popular projects you register, after which homes are allocated by lottery or based on criteria (for example priority for local residents). If you are selected, you meet the project's estate agent and sign two agreements: a purchase agreement for the land and a construction agreement for the building, often combined in one koop-/aanneemovereenkomst. A three-day cooling-off period applies here too, just as with the preliminary purchase agreement for an existing home.
Check the guarantee scheme. Most projects are registered with Woningborg or SWK. That gives you a guarantee if the builder goes bankrupt during construction, and a warranty on defects after handover.
Vrij op naam: what is included?
A v.o.n. price includes the land, the construction, VAT, the notary costs for the transfer and registration with the Kadaster (Land Registry). You pay no transfer tax. What is not included: the cost of your mortgage deed, your mortgage advice and possibly a valuation. So do include those when you work out how much of your own money you need.
Construction interest and double costs
You pay for construction in instalments, for example when the foundation is poured and when the building is wind and watertight. Instalments that fall due before you sign at the notary must be paid straight away, plus construction interest for the period until the transfer. After the transfer, the money for the rest of the construction runs through a construction deposit (bouwdepot) with your lender. You then already pay interest on the full mortgage, but receive interest on the money still in the deposit.
If you still live in a rental or your own home during construction, you will have double housing costs for a while. Ask the seller about the expected construction time and build in a buffer: delays are common.
Extras and omissions
You can often customise the home: an extension, an extra window, a different kitchen or bathroom. This is called meerwerk (extra work), or minderwerk if you leave something out. It is convenient, but it adds up quickly. Extras usually have to be confirmed before a certain date, and if you want to include them in your mortgage, arrange it in good time with your adviser.
Energy efficient, and that counts
New-build homes are very energy efficient as standard, with a high energy label. That saves on your monthly energy bill, and for very efficient homes you may borrow extra on top of the normal limit. See also our blog on how much you can borrow.
The handover: bring an expert
The handover (oplevering) is when you walk through the home with the contractor and record all defects in an official report. Bring an independent handover inspector. They will spot much faster than you whether a frame is crooked, the sealant is poorly finished or there is moisture in the crawl space. A handover inspection costs a few hundred euros and often pays for itself with the first defect found.
Since the Wet kwaliteitsborging voor het bouwen (Building Quality Assurance Act, 2024), the contractor must also give you a consumer file with information about the materials used and maintenance, and remains liable after handover for defects that were not visible at the handover.
The 5 percent rule
At handover you may have 5 percent of the construction price placed in a deposit with the notary. That amount only goes to the contractor once the recorded defects have been repaired, usually within three months. It gives you leverage. If you want to keep the deposit longer because defects are still outstanding, notify the notary and the contractor in writing before that period ends.
Look at the neighbourhood that does not exist yet
With new-build, you often buy in a neighbourhood that is still largely on the drawing board. Request the zoning plan, check what is planned around your plot and what the situation is with schools, shops and public transport. In the existing neighbourhoods next door, Buurtje.nl shows how residents rate their area, which often says a lot about how the new neighbourhood will develop.
Source: Buurtje.nl's own listings of privately sold homes (asking prices, not sale prices). New-build vrij op naam, existing homes kosten koper.
