Buy Home - Buying a House

1. How many Bedrooms / Bathrooms

2. Does it have a Study

3. Separate Kitchen and Dining

4. Garden with a Pool

5. New or Older Home

6. Location

Once you have a list of what you want use our Property Search and talk to your local Realtor / Estate Agent.  It is always a good starting point to find out how much you can afford each month in mortgage repayments use our Mortgage and Affordability Calculator to help you.

 

Getting the House you want

Look around.  You have a vast choice of properties to choose from.  Some are brand new and some are very old.  Use our Property Search to find a property that suits your lifestyle, budget and location.

 

Going to the Bank

The Banking and lending system is not what it used to be. It now highly recommended that you secure a mortgage before you start your search. This way you will know exactly how much your bank or mortgage provider will lend you and give you a defined budget for your purchase. Yes, we all like to look at those wonderful million dollar homes but is it realistic.

If you have a defined budget you will also be in a good position to negotiate with the seller. The seller won’t have to wait for your finances to be approved.  It will mean a quick sale and that’s what every home owner wants.

The more money you are able to provide as a down-payment will also determine what deals you can get from a Bank or Mortgage Provider. If you are looking to borrow more than 80% there may be clauses in the agreement such as higher administration fees or higher lending rates. The banks work on an assessment of risk, the more risk involved the more they charge. 

If you have a good relationship with your Bank talk to them first. They may view your business as low risk, if you have been with them a long time and your credit rating is good.

 

Quick Tip:  Check your local builder and developers. Sometimes they offer mortgages and reduced sales prices. If you are looking for a new home consider buying Off-Plan. Be careful with Off-Plan purchases you must make sure the builder or developer is solvent.

Banks and Mortgage Providers and going to take into account a number of factors when considering your mortgage application.

1. Income - whether you are single or have a partner the lender will take into account how much you earn and will lend accordingly.

2. Debts - do you have any, how much and have you been meeting the payments. Have you ever been bankrupt? Expect to answer all these questions.

3. Employed or Self-Employed – this will make a big difference. If you are self-employed the banks will want a minimum two years proof of earnings.

4. Joint Ownership – remember that if you sign a joint ownership mortgage all parties signing with be joint and severally liable.  If one of you does not pay the other person must.  Consider this carefully if you are buying with friends or family.

5. Look closely at the admin charges, late payment charges and early repayment charges.

6. What mortgage rate will you be paying?  Fixed or variable, or a mixture of both.

7. How many years will you have to make repayments?  Can I increase this or reduce this term.

 

What If …

Life is one big... What If? Planning will help you answer and be prepared for these Here are a few that need careful thought:

1. I lose my job - is your job safe? Is any job safe? We never really know but if you think things are not looking good then talk to your boss.

2. I can’t play golf at the weekends - doesn’t sound like a big deal, but wait until your friends call and you have to tell them it’s just not in the budget. Everyone else is having fun and you’re paying bills. Are you really willing to sacrifice your current lifestyle for those monthly repayments?

3. Interest Rate Increases - don’t take this one likely. Many people find themselves in trouble because they didn’t consider this factor.

User our Mortgage Calculator to find out the differences. There are many other questions that you may wish to think about.  Sit down quietly without distractions and make a list.

 

Time to View

By now you will have generated a wish list.  Made all the compromises, found out or actually have a mortgage offer.

Now you are ready to start finding and viewing properties. Whatever you do, keep a cool head. Assess each property according to your wish list.  If you have to compromise, give yourself a solid reason for doing so.  But whatever you do it is very important to stay within your predefined budget.  Don’t let that swimming pool convince you into thinking you can afford the extra $20 a month. Remember whatever extras there are it will cost you more to maintain.

 

The Search

1.  Property Search RealtorPlus - Start your search here. It’s easy and you can search anywhere is the world right from your desk.

2. Local Realtors / Estate Agents - There are many of these, in each area, in the local newspapers. Check them out and see what they have to offer.  Give them a call and give them a ‘Definite Budget’. Don’t let them convince you that for a few bucks more you could have... You will end up stretching things too far.  Be realistic.

 

The Viewing

For each property you visit compile a document folder. This will let you compare each property you view without pressure from the owners or the agents.

1. Take a Camera: Take internal and external photographs. Don’t forget to ask the owner’s permission before you go off snapping away.

2. Take a Tape Measure: Don’t rely on the owners or agents to give exact room measurements... will your sofa really fit in the living area!

3. Take a Pen & Paper: Note any defects you find, cracks in walls. Take a list of questions to ask.

4. Take a friend or the Realtor / Agent with you:  Never go alone, especially if you are a single female. Your safety is always the most important thing.

 

Price and Negotiations:  You will already know what the asking price is but you should ask if there is any room for negotiations.  Don’t go into the negotiation process now.  Just make a note.

Names and Numbers:  It’s time to go, but before you do take the owners name and number or the Realtor / Agents in case you have further questions or would like to make an offer.

 

The Offer

Do you have a Strong Position?

If you fall into one of the categories below, you will find yourself in a strong position to negotiate:

1. You are a First Time Buyers

2. You are a Buyer with No Chain

3. You are a Buyer with a Mortgage in Place

If you fall into any one of the categories above make the Owner and or Agent aware of this.  It will you move the process along.

 

Stick to Your Budget- This has been said before and here it is again... Do NOT be tempted to go over your budget.  It is so easy to fall in love with a property and tell yourself it is only an extra $20 a month.  Can you afford it?  Be VERY realistic!

 

What does the Seller want? - If they are in a hurry to sell or they have been trying to sell for a long time you may be able to negotiate a lower price.  On the other hand if a Seller is  in no immediate rush to sell then trying to negotiate a lower price may be impossible.  If you don’t need to sell why sell for less?

 

Meat and Potatoes - what is the property worth?  You must check out the local area and see what’s available.  Don’t just take the word of the Owner or Realtor – do some solid research.  You should be thinking future values and how easy it may be to sell in the future.  What is the condition of the property?  Does it need work, a new kitchen, new flooring, and new windows?  Go back to making your list.  Review this and make an offer based on your research and the list.

 

Lean Market – Times are tough, at the time of writing this.  The banking industry was way overstretched with the Sub-Prime Market and as a result we witnessed a Banking crisis which, coupled with other market forces, pushed the world into a deep recession. Property prices are beginning to recover in some areas and countries but we predict it will take until the second quarter of 2010 before any real upward trends are witnessed. If you are buying, now is the time.  If you are a Cash Buyer you are able to negotiate some very special deals.

If you are a property owner … we sympathize with your plight, none of us ever want to be faced with repossession or foreclosure issues.  At RealtorPlus we make selling easier, faster and more affordable.  You can place a 30 Day Ad for just £39.00 and 10% will go to a Kids Charity.

Search for a Property Today

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Your Offer Accepted

You’ve come a long way and the last thing you want, once the seller has accepted your offer, is for someone else to come along and make a better offer.  So the first thing that you need to ask is them to take it off the market.

The Owners may not agree to this and if they don’t you will have to move fast if you don’t want someone else moving If the Owners agree you will still have to move fast.  The Owners will want to see real progress, avoiding any unnecessary delays.  If you stall expect the Owners to put the property back on the market.  You should have the following already in place:

1. A confirmed Mortgage Offer

2. A Solicitor / Lawyer

3. A Surveyor

 

Getting the Paperwork Completed

Now it is time to complete the mortgage application and finalize the documents with your legal advisors.  The Bank or Mortgage Provide will undertake a valuation and have the property surveyed. If you are a Cash Buyer all you will need is to have the property Surveyed. Buying any property without one is an extremely risking.  Ask your legal advisor, they will highly recommend a survey.

If you are buying an older property, one that needs  a few repairs or complete renovation consider the following:

1. Undertake a Detailed Survey

2. Is the Building Listed?  That is, is the building protected by any Heritage Laws?

Note:  Some properties are notoriously difficult to secure a loan against due to the complex legal attachments.  If you are buying a property that is protected by law, seek qualified legal advise from an expert.

 

The Legal Work

Your solicitor / lawyer or legal advisors will:

1. Contacts the Seller’s and obtain information on the property.  Such questions will include: Who owns the boundaries, any covenants tied to the property, neighbor disputes, whether fixtures and fittings are included in the sale.

2. Check copies of any liens or guarantees on the property, details of planning permissions and building regulations certificates.

3. Check the seller really is the owner of the property and prepare a Report on Title for you.

4. Check local authority searches and plans for the local area.

5. Dependent upon your Country Pay stamp duty tax on the property .

6. Arrange registration of title in your name.

 

Get the right  Conveyancer

1.  Get at least three conveyancers’ quotes well before you  start looking for property.

2.  If you have any questions that need answering let them know right away.

3.  Give them a date as to when you would like to exchange contracts and complete. Tell them you will require regular updates of how the purchase is  progressing.

4.  Negotiate a no sale - no fee deal.  If they refuse move on to the next one in your list.  If you can’t get a deal then assess each one again.

5.  Check and compare quotes carefully making sure they are like for like. Decide if you also want the conveyancer to arrange an Environmental Search, which will give information such as flood risk, radon levels and local mines in the area.

 

Your help will assist with a smooth transition:

1.  Giving the conveyancer some basic information to get started; things like your mortgage lender details, the seller’s details, and any other information they may need.   Also give specific questions you would like them to ask the seller

2.  Completing mortgage application forms and responding to solicitors / lawyer / legal advisor queries as soon as you can. Use registered post or deliver documents by hand to save time

3.  Checking seller’s responses to questions carefully

4.  If, at any point, there is something you don’t understand... ASK!

 

Getting the job done

Buying and selling houses is not the fastest of processes.  It can take anything from 6 and 12 weeks from the day your offer is accepted to getting all the paperwork completed and queries answered.  If there is incomplete information somewhere along the process then expect things to take longer.

The next step …

In most case, no matter which country you reside, you will, once the paperwork is ready, be asked to pay a deposit.  This amount will depend on where you are, but it is usual to expect  a figure around 10% of the property value prior to the exchange of contracts.. 

Warning:  In some cases a Buyer may lose their deposit and may face legal action from the seller if the buyer pulls out of the sale.

Don’t risk your new home ...

Make sure you have adequate Buildings Insurance cover in place at this stage and buyers should also consider other protection such as Life Insurance.
Once the contracts are complete your conveyancer / lawyer will call you to tell you when your money has arrived.  Upon completion you can get the keys and move in. You should get a completion statement. Read it carefully - it should reflect their original quotation.

 

Pack your bags, it’s time to move in …

Moving house can be a stressful experience.  If you follow our guide and make an organized approach the process should be a lot less stressful.

1.  Removal Firm – a recommendation is the best.  If you can’t find anyone to recommend one, then look through your local Ads.  Pick one that is reputable and is Association Affiliated. Ask for references.

2.  If you can take it easy by moving over a few days this will reduce the stress.  Trying to get everything done right here and right now is always stressful.

3.  Get the house ready before you move.  If you need to redecorate clean floors or make repairs, it’s easier with an empty house.

4.  Before you set off get a traffic report if you are traveling a long way.

5.  Make sure that Aunt Mildred’s silver and other valuable / delicate items are packed securely.

6.  Don’t forget to have the Electric, Gas and Telephone connected.

7.  Redirect post well beforehand - don’t fall foul to Identity Theft!

8.  If you have bought a place furnished with appliances make sure everything is working.  Most manufacturers have manual online… check them out.

©Article written and supplied by: www.buyassociation.co.uk