The first step
Sign up with a number of local
estate agents and give them as tight a brief as possible. Tell them what your
maximum budget is (they will almost always try to get you to view properties
which exceed your budget, but remain firm). Tell them exactly which area you
want to live in, what the property MUST have (e.g. minimum number of bedrooms)
and what you would like it to have (e.g. south-facing garden).
Viewing property is a time-consuming business, and you do not want to waste
precious time being dragged around properties that don't interest you.
Viewing property
The golden rule is: take your time. Do not be rushed or pressured, or put off if
the current owner is hovering. Try to visit the property a number of times, at
different times of the day.
Keep your eyes open for any obvious defects, such as damp, and don't be afraid
to ask the owner for utility bills to get an idea of how much the property costs
to run.
Making an offer
Remember that the sale price is what the seller hops to get, not what they
realistically expect. Many buyers will put in an initial offer of 10% under
asking price - you can always increase the offer if they reject you at first.
But your second offer should be a final, serious one.
Also, bear in mind that popular properties may go for asking price - or even
above asking price - when the market is booming.
Make your offer subject to contract and subject to survey, so you can withdraw
if problems arise.
If your offer is expected you may be asked for a deposit, but you are not
obliged to pay it at this stage.
Surveys
Contact your lender. They will send out a valuer, or carry out an automatic
valuation, to ensure that the property is worth at least the amount they are
lending. You often have to pay for this valuation (typically about £300 on a
£100,000 property).
The valuation is cursory, however, so you should also commission your own
Homebuyers Report, which will cost about £200 extra. If the property is older,
you could have a comprehensive buildings survey carried out, which will inspect
every nook and cranny.
Legal work
Buying a home is a legal process, and a solicitor or conveyancer is usually
used. The legal process of transferring property is called conveyancing.
The solicitor or conveyancer checks all the legal documents such as the title
deeds. They also check with the local authority that nothing will impact on the
value of your property. They will also check the lease of a leasehold flat, and
what is included in the sale.
Once everything is in order, you sign a contract, which is exchanged with the
seller, who signs an identical contract. You have to pay a non-refundable 10%
deposit on exchange. You are now responsible for insuring the property, so you
must arrange buildings insurance, unless you are buying a leasehold flat in
which case the freeholder is responsible for the insurance.
A date can now be set for completion, which is usually within four weeks. On
completion day, the legal ends are tied up, you collect the keys and move in.
Home Information Packs (HIPs)
Home Information Packs (HIPs), also known as sellers packs, were conceived with
the intention of speeding up the house-buying process and eradicating gazumping
being outbid for a property before you exchange. A seller must pay around £500
to have a HIP compiled before putting their house on the market.
The packs contain an Energy Performance Certificate with green advice on how to
cut carbon emissions and reduce fuel bills. The certificate itself shows the
energy efficiency of a property by measuring its average energy use per square
metre of floor area. Other documents include a sale statement, searches and
evidence of title.
HIPs were originally penciled in for introduction in June 2007, but their
implementation has been somewhat protracted. Despite having been mooted for the
best part of a decade, the roll-out of the packs was delayed, and even then only
applied to properties with four bedrooms or more. From September 2007, houses
with three or bedrooms were included, but a date for complete implementation of
HIPs across all properties has yet to be confirmed.
Although fairly expensive, the upfront cost of a pack may be less than quoted as
estate agents, mortgage lenders, brokers and conveyancers are likely to offer
deals to sellers in return for their custom.
The introduction of the packs was expected to cause a spike in the amount of
properties available on the market as people rushed to sell before they were
brought in and anecdotal evidence suggests this may have been the case.
