Buying Guide

The home buying process is complicated and frustrating – it’s small wonder that it is considered one of the most stressful times in one’s lifetime. It’s no small job and to help you find your dream home and move in with as little difficulty as possible, here are some helpful tips.

When do you start to look for your new house? What is the first step?

First of all, you need to know how much you can afford, so that when you see a property you like, you know straight away if it’s within your grasp. You must calculate two things: the size of deposit you can find and then this will in turn determine what kind of mortgage you are likely to be offered.

Nowadays there are so many mortgages to choose from: the straightforward repayment mortgage, interest only, endowment, current mortgage account…and so on. Speak to an independent mortgage adviser and you will be able to determine the right one for you.

Once you have a mortgage that has been agreed in principle, you will know how much you can afford and you can start contacting estate agents. (Most estate agents will not take you seriously unless you have a mortgage agreed in principle).

If you have a property to sell, you should put it on the market before you start looking. If you have your property under offer by the time you find your new property, then you will be in a much better position and the vendors will be more likely to seriously consider your offer.

Selling your own property can be difficult. Remember the House Doctor’s advise and get rid of your clutter! Have a spring clean and don’t forget to clean your windows! Repaint in neutral colours and create a pleasing ambience with clever lighting for evening viewings. Certain smells can be off putting but coffee smells or baking biscuits can be beneficial!

So, on to finding your new property! You will probably have a good idea of where you wish to be, and location has long be considered paramount when buying a new property. Remember the old adage, ‘better to buy the smallest house in the best neighbourhood, rather then the biggest house in the worst neighbourhood!’
Speak to local estate agents to get an idea on prices for different neighbourhoods. Location points to consider would be; crime rates – do your homework, find out if it’s a safe neighbourhood to walk home in, local schools (even if you don’t have children – for selling purposes in the future it is always a plus point to be within the catchment area of a good school!) Are you near to local amenities such as local shops, pub, parks? Transport links are extremely important, so don’t overlook this if you normally drive – living near a train station is a big selling point. Local issues should also be considered such as mobile phone masts or the building of developments nearby. Get a copy of the local neighbourhood paper and get as much information as you can. Ring the council and get an idea of the council tax for the property.

When you have found the ideal neighbourhood you can concentrate on the property itself. Remember it’s easy to think you won’t be needing a garden in the middle of winter, but come Summer, you may well regret it if there is no access to outside space. If you have pets or are considering them in the future it’s worth remembering that new build apartment developments often have a no cat/dog clause in the Head Lease, so even if you own your flat, you may not be allowed one! Conversions are normally less likely to have this clause in place. If you are looking for a house, do you want it to be terraced, semi or detached? How important is it to have a garden, or offstreet parking? The age of the property must be a consideration as well. New builds have many advantages over older properties for modern living but can have smaller rooms and gardens than older properties.

The more viewings you do before you decide on your dream property, the better knowledge you will have of the pricing of different types of property in the area. You will see that valuations vary and so you should consider this before you offer on a property. If possible, find out how much a similar house went for in the same road so that you get a good idea of how much the property is worth.

If you get a chance to speak to the vendor you could ask them a few questions such as why they are moving, find out any local information, ask what the neighbours are like, ease of parking etc. You may find it useful to actually speak to some of the neighbours to get a more unbiased view!

When going on viewings, take your own camera and bring along pen and paper to make some notes as you go round. It’s easy to get over excited and forget to check out the fundamental aspects of the house – have a look at the plumbing, heating, electrical system and if there is any insulation. Check out the roof, are there any missing tiles? Does the brickwork appear in good condition? If you proceed to offer on any property, the minimum survey would be a homebuyers report which is a very basic survey. It won’t be anywhere as in depth as a full survey but will highlight any problems with the abovementioned areas. But even a homebuyers report is expensive and so worth checking out these yourself to see if it is worthwhile pursuing.

Proceeding with the offer

Once you have considered what you would like to offer, you should make your offer to the estate agent and not to the vendor. The estate agent’s job is to check you are a viable purchaser and will: check your details, whether you are a first time buyer or have a property to sell etc, and if you have sorted out your mortgage. Once he has established all of these things, the estate agent should then put your offer to the vendor in writing. The agent can advise you of the amount he thinks the vendor may be looking for and what he thinks your chances are of having your offer accepted.

What extra costs are there in buying a property?

There are extra costs involved in purchasing a property…

Solicitors fees

Mortgage arrangement fees (there is ordinarily a setting up charge)

Survey

Estate Agent Fees (if you are selling a property as well. Average cost is 1.5% of selling price)

Removal costs

Stamp Duty

Local Authority Search Fees

Buildings Insurance

During the purchasing process, the solicitor will check the title deeds of the new property, do an official search with the local authority to see if there are any plans in the pipeline which will affect the property, ensure that any items that are to be sold with the property are correctly itemised in the contract, ensure buildings insurance is in place by the time you exchange contracts, draw up the contracts and liaise with your vendor’s solicitor as well as liaise with your lender.

If you are selling, the solicitor will also: ask your mortgage lender on your behalf the amount required to settle your mortgage, send you a list of questions regarding the property for you to answer which will form the basis of the contract. These may include details on the boundaries, any changes made to the property, rights of way, covenants on the property, basically any information that affects the property! The solicitor will then draw up the contracts for everything to be included in the sale including fixtures and fittings. This then gets sent to the purchaser’s solicitors who will proceed with their own checks.