Buying a new home is one of the most important financial decisions a person makes. When it comes to buying a property from a developer, the decision typically involves not only choosing an apartment but also evaluating the project, the developer, the stage of construction, the contract, the deadlines, the documents, and future expenses.
From our experience at BLD, we know that a well-informed buyer makes a more confident decision. That’s why in this guide we’ve compiled the most important information: what to check, how to approach the price, which documents matter, and what mistakes you should avoid before signing a contract.
This text is for informational purposes only and does not replace individual legal advice. For a specific transaction, it is wise for the buyer to work with an attorney or notary, especially when purchasing at an early stage of construction.
What are the advantages of buying a property from a developer?
One of the main advantages of new construction is that the buyer receives a home designed according to modern standards for comfort, energy efficiency, and functionality. New buildings typically offer better insulation, more modern utilities, elevators, underground parking, access control, and better-planned common areas.
Another advantage is the range of options available. When purchasing at an earlier stage, buyers often have a wider selection of floor levels, orientations, layouts, garages, or parking spaces. This is particularly important because a good home is about more than just square footage. It must suit your lifestyle: working from home, a family with children, the need for more light, a view, convenient access, or the potential to rent it out in the future.
The early stage also offers a price advantage. Prices are typically more competitive in the initial phases of a project, but as construction progresses and the number of available units decreases, prices may change. However, balance is key here: a lower price shouldn’t be the only deciding factor. The earlier the stage, the more important it is to thoroughly review the builder, the documentation, and the terms of the contract.
How do you choose the right property from a developer?
The first thing to check isn’t the apartment itself, but the developer. The buyer should find out who is behind the project, what completed buildings they have, what the quality of construction is like, whether they have a clear portfolio, and how the developer manages the process. What matters is not only the timelines but also the transparency surrounding the documentation, the construction phases, the terms of the deal, the payments, and the commitments after the building is completed. In new construction, trust in the developer is part of the property’s value.
The next step involves the documents. Depending on the project stage, it is important to verify the land ownership title or building rights, the building permit, the approved investment plans, the construction documents, the encumbrance certificate, and the cadastral records. The encumbrance certificate indicates whether there are any registered mortgages, liens, or other third-party rights on the property. A check of the Real Estate Registry and the cadastral map is a standard part of due diligence.
The stage of construction must also be properly understood. Act 14 is usually associated with the completion of the rough structure and the structural framework. Act 15 certifies that the construction has been completed and is ready for acceptance by the client.
Act 16 is an important benchmark when purchasing a new construction because it provides clarity regarding the final stage of the building and its commissioning. Regardless of whether the document is an occupancy permit or a certificate of commissioning, depending on the building’s category, the buyer must know exactly at what stage they are purchasing, what deadlines have been agreed upon, and what commitments the developer is undertaking until the project’s completion.
What should the preliminary contract include?
When purchasing a property from a developer at a stage prior to the notarial transfer, a preliminary contract is typically signed. It must be sufficiently clear, as it sets forth the main terms of the future transaction.
The agreement must precisely describe the property, the square footage, the floor, the unit number, the appurtenances, the garage or parking space, the price, the payment method, the construction deadlines, the transfer deadline, penalties for delays, the cancellation terms, the degree of completion, and the documents the developer must provide.
Particular attention should be paid to the floor areas. The buyer must distinguish between built-up area, common areas, and total area. In new construction, the price is most often based on the total area, but for everyday use, the functionality of the home itself is key. It’s a good idea to look not only at how many square meters are listed in the offer, but also at how the space is laid out.
Payments should also be tied to clear milestones. Practices may vary, but a sensible approach is for the buyer to know what they are paying for, when they are paying, and what they receive in return for each installment. When financing with a loan, it is important that the bank’s terms align with the construction phase and the deadlines for title transfer.
How does the neighborhood affect the future value of the property?
A good project cannot be separated from the neighborhood in which it is located. When choosing a property from a developer in Sofia, one must consider not only the building itself but also its surroundings. Transportation, infrastructure, schools, kindergartens, parks, shops, medical services, and access to major boulevards all influence daily life and the property’s future resale value.
There are neighborhoods that are already fully developed but offer a limited selection of new construction. There are also neighborhoods that are actively developing and may offer better prospects if infrastructure development keeps pace with residential construction. That is why it is important to consider not only current amenities but also future development: new streets, transportation links, public spaces, schools, retail establishments, and green spaces.
From our perspective, location is not just a marketing pitch. It adds value to everyday life. A good address saves time, makes it easier to organize your day, and makes the property more resilient when it comes time to sell or rent it out.
What additional costs should you anticipate?
One common mistake is for buyers to focus solely on the listed price of the property. When purchasing, there are additional costs that must be planned for in advance. These typically include local acquisition tax, notary fees, registration fees, bank fees for a mortgage, property appraisal, insurance, costs for finishing work, furnishings, and any maintenance fees.
For new construction, it’s important to check whether the price includes VAT, what the level of completion is, and what it actually includes. The difference between a unit that’s just been plastered and skim-coated and a fully finished apartment can be significant in terms of your future budget.
It’s a good idea for the buyer to run a full cost analysis before signing the contract—not just “how much the apartment costs,” but how much the property will cost by the time it’s actually ready to move into.
What mistakes should you avoid when buying a property from a developer?
The most common mistake is focusing solely on the price. A lower price may seem attractive, but if the location is inconvenient, the developer lacks sufficient experience, the documents are unclear, or the floor plan is suboptimal, the property’s actual value may be lower than expected.
The second mistake is skipping legal due diligence. The buyer needs to know who owns the land, whether a building permit has been issued, if there are any encumbrances, what stage of construction the project is in, whether there is a valid building permit, and exactly what the preliminary contract stipulates.
The third mistake is underestimating future expenses. Finishing work, furniture, fees, bank terms, and maintenance can significantly affect the final cost.
The fourth mistake is choosing a home without thinking about the future. A smaller apartment may be sufficient today, but your needs may change in a few years. That’s why it’s wise to consider the adaptability of the floor plan, natural light, orientation, parking, accessibility, and resale potential.
Final Tips Before Signing
Before signing a contract, take the time to perform a few key checks. Find out who the developer is and what projects they’ve completed. Review the documents with a lawyer. Carefully read the clauses regarding deadlines, payments, and penalties. Clarify the stage of completion. Ask how the floor areas are calculated. Find out what additional costs you can expect. Explore the neighborhood not only during the day but also during rush hour.
A good deal isn’t determined solely by how attractive it seems at first glance, but by whether it remains a sensible and worthwhile choice years down the road.
For us at BLD, buying a new home should be a process marked by clarity, trust, and peace of mind. That’s why we believe that an informed buyer is the best buyer. When you know what to check, what to ask, and how to evaluate the project, choosing a new home becomes much more confident.