Buying Process Guide

See All Guides

Buying a home is one of the prime investments you are likely to make in your life. With clear thought and planning, buying a property can be an interesting venture instead of a stress filled activity. Given below is a step-by-step guide to give you a overview what all is involved in buying process.

Decide where and what type of property you want to buy?	Firstly decide what your budget is going to be, do remember there are more costs involved than the mortgage, and add to this various fees of solicitors, surveys, insurance and of course furnishings and decorations. Once you know your budget, location is the next critical thing. Getting the location right is important, it would depend on many factors such as Where and what work you do if you have family then does it have good local schools nearby the kind of social life you lead and how important it would be that the new house is situated in a locality that cater to it public transportation, local amenities etc… Be realistic while deciding what kind of property you would like to buy. Ask yourselves the below questions to get a basic idea would you like new home or old home how much work are you ready to do in the property what are the important features which are an absolute must for you (eg garden garage etc) can it be either a apartment or a house what should be the size and state of the interior
Choose a mortgage	Since you have broadly decided on your budget, it is important that you choose a mortgage. There are various lenders out there in the market, and generally mortgage is three times your annual gross income. Study and shop around with the various lenders and choose the one which suits you the best. It is worth getting pre-qualified mortgage as this will give you an upper hand with the seller also ensure you know your budget more accurately while searching for your home.
Viewing Properties	Once you have decided on the basics such as your budget, size and kind of property, area you can now start to visit houses. Keep track of the properties you've seen. After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the field down. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard. Make a questionnaire which you can ask to owners/agents with regards to the property, local area and amenities etc… If you think you have found something you like, ask to go and have a look at the place again, but without the pressure of the estate agent with you. This way you can take your time and view with a clear head. Try to picture the place with all your possessions in it and refer back to your notes on your ideal home. If you are sure you have found the right place then go ahead and make the offer.
Find a Solicitor	You need to find a solicitor to conduct the conveyancing. Conveyancing is the transfer of ownership of property or land from one person to another. It is necessary to insure that the new owner has proper legal title to the property. Most people who are buying or selling property hire a legal adviser to handle the legal work. This is usually a solicitor, but it's possible to use someone who is registered with the Council for Licensed Conveyancers instead. It's possible to do the legal work yourself, but this can be complicated and risky. In addition, most lenders will insist on a solicitor or licensed conveyancer acting for them if the transaction involves a mortgage.Your solicitor will carry out the below Land Registry Entry: Your solicitor (or conveyancer) will check the seller has the right to sell the property with the Land Registry to avoid any problems later on. When the sale goes ahead, s/he will register your ownership of the property and your mortgage agreement (the mortgage deed) with the Land Registry. You have to pay fees for this, which vary depending on the price of the property and whether the property is already registered or not. Basic Information from the seller: Your solicitor will also ask the seller to provide certain information related to the property, its surroundings & maintenance, boundary limitations. Also a list of the fittings and fixtures which may be either taken away by the seller or are included in the house price. This becomes part of the contract, later if the seller later takes away things that were included in the price, you can ask for them to be returned or claim compensation. Local authority Checks: looks for planning proposals such as new roads, changes to road layouts, building developments in the vicinity and alterations to land use or public rights of way which might affect your chosen property. Stamp duty: Stamp duty is a government tax that you may have to pay if you pay more than £1, 20,000 for your home. Your solicitor can work out how much you have to pay Preparing the contract: Once the buyer and seller are satisfied with the terms, draft contracts are sent out to both parties for signature.
Make an offer	Before you make an offer, study the location carefully and know the property prices around that area. Negotiations are part of the process and estate agents mark up the price at times to get true price. The first offer is usually 5%-10% below the asking price, depending on the perceived level of demand and current market conditions. The two sides then work towards some common ground with further offers and reductions in asking price. It is very rare for you to get your opening offer accepted, however close to the asking price it is. Both the owner and the agent will expect you to negotiate. Don't lose out on the house of your dreams purely through stubbornness over the final couple of percent of the asking price. Make sure the offer is subject to a survey and contract. If the survey shows up something that needs doing on the property, don't be afraid to renegotiate. Insist that the vendor takes the house off the market immediately to discourage any further offers and reduce the risk of you being gazumped (other buyer outbidding you after you have put in your offer)
Offer is accepted	Once your offer has been accepted its time to get the legal and financial process in motion. In England you can back out of sale without any penalty however in Scotland it's legally binding. If buying in England, carry out a survey and also your mortgage lender would carry out a valuation which will determine the approximate value of the house. This is purely to justify for the lender that the property is worth at least how much you are borrowing. Without this, mortgage lenders will not formally offer you the mortgage. If the survey highlights any factors that you think should be reflected in the price, you can re-negotiate.
Exchange Contracts	Exchange of contracts is the stage at which a property sale becomes legally binding on both sides. Once you are satisfied with the survey, your mortgage has been agreed you will be ready to exchange contracts. This will be done by the lawyers acting for you and the seller and once contracts have been exchanged, both of you are committed to the deal. If for any reason, you pull out, you will lose your deposit. Conversely, the seller is bound to sell the property to you and cannot accept a higher offer. This is also when the completion date - when you get the keys and can move in - is set. You will probably become legally responsible for buildings insurance from the date when contracts are exchanged. In many cases, this can be arranged through your solicitor. Ask her/him to check this, and make sure the property is insured properly from the date you become responsible.
Arrange completion date	Once contracts have been exchanged you can formally set a date when the keys will be handed over to you and you can move in. This can be anywhere between a day to 28days. This is the period when the money for the sale is given to the seller and you pay for any outstanding costs involved in the purchase.
Move in	Once the property sale is completed, contact removal and storage companies to get quotes and decide on the one which suits you. You may also need furniture, appliances and household items. If you can, set some money aside for this when working out your moving budget. Remember, the best time for renovations is often before you move in…
Offer is accepted	Firstly decide what your budget is going to be, do remember there are more costs involved than the mortgage, and add to this various fees of solicitors, surveys, insurance and of course furnishings and decorations. Once you know your budget, location is the next critical thing. Getting the location right is important, it would depend on many factors such as
Offer is accepted	Firstly decide what your budget is going to be, do remember there are more costs involved than the mortgage, and add to this various fees of solicitors, surveys, insurance and of course furnishings and decorations. Once you know your budget, location is the next critical thing. Getting the location right is important, it would depend on many factors such as

Home

Buying

Renting

Sharing

Overseas

Auctions

Find Agents

Buying Process Guide

Try PropertyChart for 6 months for FREE!!!

Click here to Register Online