How can I find my dream home?
There are lots of ways you can search for property for sale.
Rightmove and other property portals are a great source of information and can give you a real insight into what types of property are available, their location and price. Most estate agents list their properties on the main property portals so this will give you a good overview of what is for sale at any given time.
You should also contact your local agents and register your interest with them. Put yourself on their mailing list, make firm connections and get to know them. This helps to get them on side.
Drive round your chosen area to get a real feel for the place, highlight the areas that are of interest to you and make sure your agent knows where they are. If something comes up for sale in that area, you’ll want to know about it so get the agent working for you.
How much time should I spend looking for houses?
You should spend as much time looking around houses as you can. The more houses you look at, the greater an idea you will form of what your dream home should have to offer.
Try to get round to see new listings as quickly as possible. This will accomplish two things; firstly, you may come across your ideal home and because you’re one of the first to see it, you’ll stand more of a chance of getting it and secondly, it will show the estate agent that you are a serious buyer, so when a new property comes to the market that seems to fit your requirements, they will be more likely to contact you.
Once you do find a property you are interested in, arrange a second viewing at a different time and perhaps take someone else with you such as a family member or friend.
Apart from the house purchase price, what other costs will I have to pay when buying a house?
There are a number of additional costs that need to be factored in when buying your new home. Below is a list with approximate figures.
Solicitor’s conveyancing fee
You should allow anything between £50 0 - £1000 + VAT but shop around for the best deals. Here at Jonathan Waters Estate Agents we can recommend good local solicitors if you don't already have one organised.
Stamp duty
Stamp duty is a banded payment. It is payable at different amounts, depending upon the sale value of the home. The bands are listed below:
0% on homes sold at up to £125.000
1% on homes sold at between £125.001 and £250.000
3% on homes sold between £250.001 and £500.000
4% on homes sold at £500.001 and above
Since the 25th of March 2010 first time buyers have been able to secure a two-year temporary stamp duty relief on property up to the value of £250,000. Also longer term, a new 5% threshold for properties above £1m will be introduced. This comes into effect on 6 April 2011.
Mortgage survey fee
This can cost anywhere between £250 and £1,000 depending on the type of survey you have done.
Mortgage lender's arrangement fee
This is only applicable on certain mortgages and your mortgage advisor will be able to tell you in good time, what the situation is with yours.
Buildings and contents insurance
Once you have moved in, building insurance is compulsory for anyone who has a mortgage. This insurance protects the lenders money in the event of the building being damaged
If the sale does not go through, what costs do I have to pay?
Many solicitors and estate agents offer their services on a No Sale No Fee basis. If your purchase falls through prior to exchange of contracts and survey then you will not have to pay anything. If it falls through after survey then you will lose the money paid for the survey. If the sale falls through after exchange of contracts has taken place, this can be very costly as your buyers and sellers will sue for the inconvenience caused. A Home Buyers Expenses Insurance scheme is available to help safeguard against some of your costs if your purchase fails to proceed to legal completion.
How much can I borrow?
Before you start to look for your new home, it is essential that you find out what size mortgage you can get. After all, there's no point searching for the house of your dreams if it's out of your price range. The best thing to do would be to speak to an Independent Financial Advisor or (IFA). IFA’s are not tied to a lender and they provide objective advice of the various mortgage products available. They will find the best deal for you that matches your own personal circumstances. Get a lending agreement in principle and a certificate that confirms the amount. A lot of estate agents will request sight of this and you can use it as a bargaining tool because it will add weight to your offer.
Your borrowing ability is based on the size of your deposit and your salary. Lenders will usually lend up to 3 times your annual salary. If you are buying as a couple, the lending criteria changes and becomes 3 times the 1st income plus the second or, two and a half times the joint income. Do your own research as well, look through newspapers, magazines and the internet, it pays to be informed.
What are the most important questions to ask the seller when buying a property?
You need to know whether the property is freehold or leasehold and if it’s leasehold, how long the lease has to run on it and whether it can be lengthened.
Another key question concerns maintenance charges. Are there any maintenance charges that you would be contracted to pay?
Has the road been adopted by the local council? Is the local council responsible for its upkeep and the upkeep of the drainage system?
Are you allowed to erect business signage and/or hang out your washing? Believe it or not, there are restrictions in place in some parts of the country, forbidding you to do this.
Do any rights of way exist over the land of the house?
Can the current occupiers guarantee full vacant possession upon completion? This is very important, after all, you do not want to move in, only to find you have to share your new home with some existing tenants.
Is the property built on a floodplain? Has it ever flooded or been in danger of flooding?
Make sure these questions are answered to your complete satisfaction prior to moving forward with an offer.
How much should I offer?
As tempting as it might be to try to get a bargain, it would be saddening to lose the property you have set your heart on for the sake of trying to save a few pounds. If you consider the house or flat to be a reasonable price, then offer the full asking price. In doing this you are more likely to secure your dream home. The owners are less likely to want to hold out for more money and you stand less of a chance of someone else coming along to pip you to the post with a higher offer.
When should I sell my house?
If you are reliant on the funds from the sale of your current home to finance, at least in part, the purchase of your new home, then it is absolutely the right thing to do, to sell your home first. It will place you in a much better position if you already have a buyer for your home when you put in an offer on a new home.
We would recommend putting your home up for sale as soon as possible. When you find a buyer, make sure you state in the contract, that you will not move out before you have found a new home. Another advantage of adopting this strategy is that you will know exactly how much money you have available to you, to make your next house purchase.
Any time is a good time to sell and buy property, especially if the mortgage market is stable. It used to be said that the property market was a cyclical thing, prone to slowing in the holiday seasons and whilst it may be true that slightly fewer property sales go through at Christmas time or in high summer, we have over the past few years noticed these seasonal trends levelling out.
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