Buying a property is pretty simple, it’s just not always easy. If you’re buying for the first time, what do you need to know?
Property Criteria
The first step is to find out how much you can borrow. You can do this by giving details of your income and outgoings to a mortgage broker who can search the market and give you a rough idea.
With a budget in mind, make a list of what your ideal property should have, perhaps number of bedrooms, bathrooms, transport links, garden, location, or period features.
Be sure to break this list down into ‘must haves’ and ‘possible compromises’ to get really clear in your mind what you’re looking for.
Viewing Properties
You can start with a property search engine such as RightMove. Search for properties with your criteria and see if they’re within your price range. You may have to lengthen your list of compromises if your budget is unrealistic.
You can call estate agents and discuss what you’re looking for, and they can keep you in mind when something new comes on their books. Start viewing quickly, even if the property isn’t ‘perfect’, so you can get a feel for what the market is like.
Making An Offer
When you find a suitable property, you can make an offer. Some vendors list properties as ‘offers in region of’ or ‘offers in excess of’, or sometimes they ask for best and final bids.
If your offer is accepted, you can request the agent to take the property off the market.
The money and legal factors
Now you need to contact your broker or lender to start your mortgage application. You’ll also need to find a solicitor specialising in conveyancing such as Sam Conveyancing. It’s often a good idea to get a few quotes from different firms and be sure to check what’s included in the fee. Your solicitor will handle all the paperwork and firm up the finer details of the sale agreement, including what is included in the fixtures and fittings.
Get the surveys
Your lender will arrange for a surveyor to value the property once your mortgage offer is agreed in principle, but you should also instruct your own surveyor who will be more detailed in highlighting any potential problems with the property. There are different levels of survey from quite basic to full structural; which one you choose to have will depend on the type of property you are buying and your surveyor can advise on this.
The Royal Institute of Chartered Surveyors recently changed the names and formats of their surveys, but have comprehensive information so that you can find out which you need. It is recommended you choose a surveyor who is local to the property, rather than local to you, if you’re moving to a new area. For example, if you are purchasing a property in Oxford, but live in Liverpool, you will want to instruct a firm able to conduct a building survey in Oxford.
Check the survey result carefully. Based on the results, you can decide whether to reduce your offer or pull out altogether if it shows more work needs doing than you are prepared to undertake.
Exchange of contracts
When your solicitor has completed all checks and searches, you’ll exchange contracts, at which point the sale becomes legally binding. You’ll put down an exchange deposit (usually 10% of the purchase price) and agree on a date to complete the sale.
The completion date is the day you release funds, get the keys, and can start moving in.
