Run ‘test drive’ before buying a home

Kenya: You would never think of buying a car without taking it for a test drive. How about doing the same for property and taking your desired house for a spin? PETER MUIRURI looks at this unique idea

Buying a house is perhaps the largest, single expenditure one has to make in a lifetime. The decision to buy a home is largely informed by a person’s financial ability and family needs.

And in these days of advanced technology, the purchase can be done off plan after viewing the lifestyles depicted in the developers’ colourful brochures. Usually, an onsite show house is the closest one can come to having a foretaste of what the finished house will look like.

However, after such a purchase, some new homeowners are disappointed by the shoddy manner in which the home is constructed, including the use of substandard appliances such as door handles, light fixtures, cabinets and bathroom fittings.

In extreme cases, there are changes in design, with variations in room sizes from what may have been indicated in the initial plans.

Home and Away has in the past talked to homeowners who ended up feeling cheated when the final purchase did not fit the promise. In most instances, it is too late to correct such anomalies. And many may choose to buckle under and bear with the disappointing reality.

Well, some developers seem to have woken up to the fact that prospective homeowners are not just content with parting with their hard earned cash in exchange for a house but want a deeper involvement in the entire process. The concept has been tried in a few other countries and is now making its way to Kenya as developers adopt aggressive marketing ploys.

Take the case of Superior Homes Kenya, the developer behind Greenpark Estate along Mombasa Road near Athi River. In a bid to woo prospective homeowners, the developer has opened up one super bungalow, equipping it with modern appliances like a cooker, refrigerator, microwave and a state of the art entertainment system.  Here, an entire family can spend a few days while making their own meals before deciding whether to buy a home or not.

This is how the new concept dubbed “try before you buy” works. An individual or family wishing to buy a home books the fully furnished house for four nights during the weekdays or three nights over the weekend. They bring in the their own food. This helps them evaluate the level of workmanship being employed in constructing the homes while scouting the immediate neighbourhood where the house stands. In the end, they make a decision based on actual observations and personal experiences.

Angelica Wambui, the project’s sales manager, says the idea is meant to help individuals or families evaluate not only the house but the lifestyle that will have lasting effects on other family members.

“As any developer will tell you, there are certain questions that are almost universal to prospective home owners. How far is the house from nearby schools? Where is the nearest shopping mall? How long will it take me to drive to my place of work? One can now answer such questions by having a taste of the home before committing to buy,” says Angelica.

Concept

But the “house test driving” concept comes with a rider: a non-refundable fee of Sh20,000 is charged for each package to ensure that only serious individuals apply. In case one decides to make a purchase, the fee forms part of the deposit. If one is not ready to make a purchase, then the fee goes to pay for the few days spent here. You can chalk it off as a family outing.

If the stay includes weekdays, one would then drive to his usual place of work in a bid to make a comparative analysis with his current programme.  One can also visit the social amenities nearby such as markets, schools and hospitals. A survey of the area’s infrastructure is also essential.

 According to Angelica, the concept will also help individuals interact with the developer during the stay, asking all relevant questions and getting answers without the need for a third party. The move is also aimed at those in the Diaspora who do not have much time in the country but need to make decisions based on accurate knowledge.

“Such an idea shows that a developer has nothing to hide. What you see is what you get rather than relying on information passed on by friends elsewhere. A person can point out things he does or does not like. For example, the house we have opened up has an open plan kitchen while a person may opt for a closed one. You also have the advantage of interacting with your potential neighbours who can give you further information about the location,” she says.

Showing the importance of the arrangement, Angelica says it is disheartening for a family head to make a brief visit to a site and, within minutes, make the decision to purchase a house that may not be to the liking of other family members. To her, choices have consequences.

In any case, she adds, none of us ever buys a car or a pair of shoes before trying them first.  “I get apprehensive when I see a family man making a unilateral decision involving million of shillings within 15 minutes. It is unfair to other family members who will have to live with it for a long time to come. Having the entire family reside in a prospective neighbourhood means the final decision will be made by all,” says Angelica.

According to Carol Kariuki of The Mortgage Company, a thorough assessment of one’s future neighbourhood can forestall a number of unforeseen complications.

Things to consider

She says one should look beyond the affordability of the house but consider the cost of commuting on a daily basis.

“You may get a house that might be cheaper in one location than a similar one in another area only to lose whatever savings you got in the “good” deal through accumulated transport costs. This may become more complicated if you have children attending different schools,” says Carol.

She adds that one should also consider potential capital gains accrued from such a family investment. A detailed assessment of the location will reveal whether the property has the possibility of appreciating should one decide to offload it to the market.

“One may find himself stuck to a property located near a slum or next to a railway line. On the other hand, a more expensive house in Nairobi may appreciate in a very short time than a cheaper house bought in another town such as Nakuru or Kericho. Location is everything,” she says.

While the “try before you buy” concept may be new in the country, a version of the same in the UK involves renting the house for a period ranging between one and three years at a rate lower than the market price before making the decision to buy.

At the end of the period, the accumulated rent is deducted from the sales price after re-evaluating the home. If the new valuation reveals a marked price increase in the property, then the developer will hold on to the original value.

According to The Independent newspaper, this concept is proving to be popular with new homeowners who are finding it hard raising mortgage deposits.

“With lenders still demanding hefty deposits, mortgage approvals fell by over 30 per cent in the last year. So this is one way that buyers can save for their first steps on to the property ladder,” states The Independent.

Similar incentives in the US include giving prospective homeowners some temporary club membership in the developer’s golf courses.

With developers intent on retaining anyone showing a hint of interest, it remains to be seen how the new concept will help them offload their stocks to the market.