Buying Tips
Getting a mortgage and buying a property
Rarely will you get the chance to road test a property before you buy. But if you've decided that it's time to buy,
understand the unwritten rules, know the pitfalls, and factor in the costs before you put in that offer.
First-time buyers
With record house prices it has never been more difficult for today's first-time buyers to get on the property ladder. That is why it is important to get a mortgage which is right for you.
Before you even start looking for a house, arrange your mortgage. You can get a mortgage offer in principle from most lenders without having to make any firm commitment. It can be time-consuming, but it has numerous advantages:
- You get it out of the way.
- You know exactly what you can afford, so you won't lose out on your dream house because you think it's too expensive for you.
- When you do find the property you want, you can quickly make an offer.
You should seriously consider taking out private health insurance or critical illness cover. You may want to consider joint mortgages with friend or partner.
Viewing properties
Keep in touch with your local Estate Agents. It's important that they regard you as a serious applicant. Contact them at least once a week. They'll think of you first when a property comes on the market. Show that you are willing and be eager to view, and you'll be top of the list when something new comes on the books.
Many estate agencies now have their own websites, where you can browse available properties. However, undersatnd that many don't update their sites as often as their shop windows.
Here are some useful tips to be aware of when looking for the house of your dreams:
- View the properties as soon as possible. Don't leave it too long or you could lose the house. Print off our viewing checklist and take it with you.
- If two of you are buying and you have children, decide which one of you will be the main viewer, who will choose the best properties.
- Visit a property as many times as you can, and take a tradesman e.g. a qualified builder or surveyor who will be able to provide you with professional opinions on the property.
- Research the history of any shabby - and therefore cheap - property. If it's been rented it may have had a succession of landlords, all of whom may have neglected repairs and upkeep.
- If you're tempted to buy a run-down property to renovate and sell on, find out how long it's been on the market. If it has not sold for a long time, it suggests there isn't a much of profit to be had.
- New carpets, painting, bathrooms and kitchens can be signs of a superficial renovation that is hiding more serious work to be done.
Making an offer
If you find your ideal home and it seems to be priced correctly, consider offering the full asking price. This means you'll be taken seriously, there won't be any time-wasting and it will lessen the possibility of another party stepping in (see Gazumping, below).
All offers should be made with the agreement of removing the property off the market. Getting a 'Sold' board outside is a good way to deter others from looking.
Property Chains
Most properties are sold as links in a chain but, unfortunately, a third of property chains fail. This can happen for many reasons, from one party not having their finances in order, to an unpleasant surprise from their surveyor.
Under current UK house-buying and selling practice, little can be done to alter the process, although the Government is proposing a legislation that will require home owners or their selling agents to provide a Home Information Pack (sellers pack or HIP) to prospective buyers on request.
The best way to ensure a chain progresses smoothly is through good communication. Stay in regular contact with your solicitor and estate agent to make sure everything necessary is being done to make success more likely.
Be flexible. Be prepared to move in with your family or friends or rent as a short-term measure if it means you can stop the chain from failing.
Gazumping
Gazumping - outbidding rivals at the last minute - is a nightmare estate agents are powerless to stop (there is nothing they can do). Unless you're lucky enough to live in Scotland where there are laws to protect the buyer. Under the Estate Agency Act, estate agents must pass on all offers they receive, although a determined buyer will probably go straight to the vendor.
There's little you can do to stop a determined bidder, but there are ways to reduce the likelihood of it occurring, or at least lessen the impact if it does:
- Offer the full asking price and stipulate the property be taken off the market.
- Try to be flexible with the vendor and don't squabble over minor details.
Tell them you're willing to complete on their timescale, not yours.
- Be friendly to the vendor - if you've established a good relationship with them, it should be harder for them to let you down.
- Take out insurance - you must do this before you instruct your solicitor, but then if you're gazumped, you can be refunded the cost of your various fees.
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