House Buying - Moneysaving Tips

gromitpet14

Wickedkitten wrote:

Definitely get the homebuyers if the property is old, but it really won't check the gas, electric, water, or drains other than saying "it's connected to x,y,z. Also there will be set replies on certain things considering the properties age so don't fall over when you read it and it sounds like the house is on it's last legs, just make a post with the urgent bits and someone will tell you if they are truly serious or not.

Oh Dear! I truly hope it isn't on it's last legs!! I'll let you know what comes back on it. Perhaps it is falling down, or sinking!!!

Fingers crossed I haven't purchased a house on a mine!

seven-day-weekend

If you're not too desperate to buy quickly...

we looked at a flat and liked it. The vendor said he had already accepted an offer on it. We said, 'OK, if the deal falls through, come back to us, we will offer you (£500 less) and a definite sale.' This was on a £35,000 flat in 1997.

Two months later we got the flat for £33000.

djurmann

Hi Folks,

I have seen a lovely property (at thsi price it should be) saying "offers in excess of £575,000" but what does that mean really?

Also can one get an independent valuation of property, and if so what is a good way to go about it?

Many thanks,

Danny

Doozergirl

Hi Danny,

The answer to your first question, if you are in England, is that the amount is probably the minimum the vendors are prepared to accept. I'd ignore this though, and go with whatever I felt was right.

An independent valuation can be provided by a surveyor. You'll have to pay out a couple of hundred pounds probably for any independent valuation so...

A few hours trawling the internet for current asking prices, and recent 'sold' prices and several more property viewings will give you a good idea of whether their asking price is realistic, for no financial outlay at all. TBH, it's what any surveyor does and it would be better to do the ground work yourself and have your surveyor (fingers crossed) confirm things for you as part of a proper buildings survey after you've had your offer accepted.

robuk_3

I have over two yrs experience within an estate agency and have some extra tips from another perspective.

I would suggest definately not using a search agent or a middle man - this is only another fee that eventually will come either from yourself or be added onto the price of the property. Buying a property is a lot simpler than they makeout, it is this fear that they are getting paid on !

Be aware of the market in your area - on a thread earlier it was mentioned going in for a property at £120 at £105, you must, must, must gauge this initial offer properly. I worked in a busy area of London and some properties that came onto the market went within a few hours of coming onto the market at more than £15K above the asking price, if you would have gone in, wanted a second viewing, then gone in under the asking price, then raised your bids in £500 increments you would have lost it.

2nd viewings ? - If I like a property on the first time of viewing it then generally I would make an offer there and then so as not to loose it to another person bidding before me. You can always second view it after your offer.

Make friends with your agent !!!! - the most important thing, they find out about new properties coming onto the market first. Are they going to phone the person who is nice to them, or the grumpy bloke with the screaming child that got chocolate all over their car?

Don't get hung up on the vendors situation, if you like the property make an offer on the condition that if the vendor has not found somewhere in 6 weeks then they will move into rented accomodation, the agent will be happy as that could be a lettings fee !

Work out your maximum bid for a property, knock 3-10K off it depending on the asking price and what the agent tells you, this always allows you to raise your offer.

Use a large well known broker - they are the banks biggest customers, who are they going to put first in line, the person spending and lending billions or Mr and Mrs smith borrowing £120K. Plus it gives you a contact to get in touch with and to chase the bank along for you. Ask the question how long will it take for you to get me my mortgage offer to my solicitor ?

I know mortgage brokers that can do it in 24hrs !!! so don't settle for 6 weeks etc ask for it in a fortnight. As long as the case isn't complicated they should be able to deliver. If they can't try a different broker.

Solicitors !!!!! the nightmare that is trying to get hold of a solicitor on the phone.

A lot of conveyancing firms offer great deals and even better promises. Here are some tips about picking the best solicitor.

If you are purchasing a city centre flat make sure that the solicitor has dealt with flats before - you would be surprised but some do not know how to deal with leasehold properties.

Remember this is the biggest purchase of your life most likely, if you were having the biggest birthday party of your life would you pick the cheapest champagne ? No, then don't pick the cheapest solicitor.

I would simply not use internet conveyancing companies, many have large rooms of people, call centre style, filling out basic forms before the pack they produce goes in front of the one solicitor that the company has working for them. You can imagine what happens if anything is out of the ordinary.

Pick up the phone, as your agent for suggestions of a few - call around different firms, ask if the solicitor has any holidays planned over the coming weeks - if they do then don't use them, your file will sit on their desk untouched generally.

Make sure that you can actually talk to the solicitor that will be handling your file - if the receptionist won't let you past it is generally that the solicitor won't take calls, don't use them you will want to be able to phone them on a weekly basis. If they say they will call you back, see how long it takes.

Generally it is good to go with your feelings, this is someone that you will want to talk to each week, get an update from in plain english and know how long the exchange is off.

Finally keep in contact with everyone to know how to sale is progressing, do not presume it will happen without you pushing it along.

Aim for the shortest time possible for conveyancing, the longer it takes the more likely that the sale won't go through. Aim for two weeks from your solicitor recieving the draft contracts. The quickest I have know was five hours from viewing to completion so it can be done !

Hope this helps some people

AndrewSmith

robuk wrote:

Use a large well known broker - they are the banks biggest customers, who are they going to put first in line, the person spending and lending billions or Mr and Mrs smith borrowing £120K. Plus it gives you a contact to get in touch with and to chase the bank along for you. Ask the question how long will it take for you to get me my mortgage offer to my solicitor ?

I know mortgage brokers that can do it in 24hrs !!! so don't settle for 6 weeks etc ask for it in a fortnight. As long as the case isn't complicated they should be able to deliver. If they can't try a different broker.

This is actually quite inaccurate.

Most smaller firms submit mortgage cases through 'Mortgage Clubs' or Networks, the same way that larger firms of brokers do.

Regarding 'banks biggest customers' and implying that if you use a larger broker your application will be dealt with quicker is also completely inaccurate.


The size of the broker firm is irellivant. What is vitally important is that broker's access to the market or panel restrictions. As long as your chosen firm can submit via the main mortgage clubs (which the vast majority can) and is truly whole of market then a one man sole trader will have the same service standards and products available to him as a firm of brokers with 50 advisors.

elDeeJay

AndrewSmith wrote:

7) Pre Offer Information
Before considering what to offer you need to find out as much about the situation of the seller as possible. Find out if they have found a property. Is the chain above you complete and how long is it. How stable is the chain and how well established is it. Are there any other viewings booked or other offers on the table? Do you think there is any wor needing doing to it? Armed with this information you will then be able to present yur offer in the best possible light to the agent and seller. After all the name of the game is giving the seller what he wants, and that is allowing him to move upwards. It is not always about finances alone.

Lots of really useful info on this thread so far, so thanks to all who have contributed. One question though: a few people have mentioned finding out about the sellers status. how would you go about that? ask the EA? ask the seller directly? Perhaps this is a dull question?

samspam

Hi Everyone, I am a newcomer to this forum but as I work for a house builder I thought I would add some comments which may or may not help.

1. If you want a new build: Find out when it's the companies financial year end and visit the development 4-6 weeks before. There will sometimes be a handful or properties which the developer needs complete for year end and will be offering discounts on. To buy one of these you should make sure that you have a mortgage agreed in principle and that you have nothing to sell or are SSTC and can complete within 4 weeks. Remember that EVERYHING IS NEGOTIABLE. If you want to proceed, say you will only sign up there and then if you can have x,y and z. Start by being a bit cheeky then you have more room for negotiation and expect to meet in the middle. Ask for extras such as carpets, turf and stamp duty as well as maybe a 5% deposit paid (especially good if you are short on deposit monies.

2. Similar to point 1, try this at the very end of a development when the builder wants to move off. On my last developement I sold the last few 4 bed houses 30k cheaper than the first ones, this was just to get rid of them and they had carpets, turf and lightfittings included and no they weren't 'Bad Plot's' they just happened to be the last ones.

2. Another tip is to buy a second hand property near where a major housebuilder is building. The minute we announced we had bought a plot of land on a old factory, the surrounding terraces rose in value by 15/20k. FTB can't afford to buy on my site so they go and buy the terraces, knowing that their close proxomity to a prestigious development will eventually make the area more desireable to live in even if it is " a bit rough now" just wait until the old mans pub accross the road is turned into an upmarket gastro pub and then watch the area rise!

3. There are numerous schemes to help FTB including Shared Ownership and Affordable housing. This way you can buy a new house at a fraction of the price. Ok, the specifaction may be lower than the other houses on the development and you have to sell within the set criteria when you want to move but if it is the only way you can get on the ladder then it is a good step to take.

And lastly: FTB's "Ditch the lifestyle"
You wouldn't believe the number of young people that come into my marketing suite driving new BMW's ticked up to the eyeballs with credit cards and car loans etc etc.

My advice: Sell the flash car, do without a few flash holidays and go out less. Less credit = bigger mortgage

Hope this helps

AndrewSmith

elDeeJay wrote:

Lots of really useful info on this thread so far, so thanks to all who have contributed. One question though: a few people have mentioned finding out about the sellers status. how would you go about that? ask the EA? ask the seller directly? Perhaps this is a dull question?

NOt dull at all. A question is only easy if you know the answer.

Either is fine. Asking the Agent or the Seller.

I prefer asking the seller when you are looking round (if they are there) as it leads into a natural conversation and allows you to guage exactly what their situation is and how quickly they need a sale.

mand23

This is really good advice, I am hoping to buy my first house next year
(2007), when my husband graduates as a teacher!::T mand

AndrewSmith wrote:

Thanks Doozergirl, must learn to keep my mouth shut sometimes, a point that I am sure Martin himself will gladly welcome

So, how to sucessfully negotiate with an agent or seller on the property you want, and how to get it for the price (or as near to it) that you want.

Selling or buying a house is ranked amongst one of the most stressful things that one will do throughout their lives. Think about it, you are talking about something that will be where your family memories and possibly members will be born and will bear special meaning to different people. Needless to say it is an immotive time at best.

I do not have all the answers, no-one does as it will vary from property to property, and person to person.

What I can offer however are some tips that I have picked up and still use from the 8 years I spent sat as a broker in an estate agency office.

1) Know Your Budget
Sounds obvious but there are buyers out there today who have no idea how much it is likely to cost them to buy a home, or what they can afford. Work out what you have coming in, and what you can afford to spend each month including all the household bills.

2) Know What You Can Borrow And It's Cost
This goes hand in hand with the above. If you aim at nothing, you will hit nothing. Visit or speak to a broker to establish what you are able to borrow, how it works, what's involved and how the costs will fit in with your monthly spending budget. This is the point at which you will know whether your plans are, in fact, do-able.

3) Get The Funding In Place
If taking a mortgage, get an agreement in principle or mortgage promise from the broker. This will be invaluable when you come to actually begin bidding on a property as you will be taken far more seriously by the agent and seller if your finances have already been agreed. Never forget though that an agreement in principle is only as good as the information you provide to obtain it. Be honest from the start and it will prove worthwhile. Make sure that you have the necessary funds inplace for the deposit, mortgage fees (survey etc) and, as I will move on to, the Legal fees.

4) Get 3 solicitors quotes and decide which one you will use in preparation
Get at least 3 solicitors quotes based on the figures and budget worked out with your broker. I always suggest 1 Local firm, 1 Distant firm, 1 online form. See how they compare but remember that cheap is not best. Paying a little more could make the difference between a swift trouble free transaction, or having a solicitor who leaves your case till 'tomorrow'. If yu have the solicitor firm in mind, it will benefit you again when bidding.

5) Make Yourself Known To The Agents
Call the agents on a regular basis. On the desk of every decent sales negotiator there will be a small index card box called his 'hot box'. This is a list of people, usually first time buyers who are looking for property and are ready to proceed. Your aim is to be at the front of his 'hot box'. This requires a certain amount of persistance on the part of you and your broker. Call the agents at least once if not twice a week. Ask if there are any new properties on their books, have any sales fallen through. Get your broker to call and tell the agents that you rmortgage has been approved (in principle) and you are now keenly looking to move ASAP. Don't however let your broker tell the agents how much you can afford. Keep the pressure on the agent to find you somewhere, once they know you are serious you will be the first one to get a call when they have a new instruction.

6) Finding The Property
Once you have found the property you like, never seem over eager to the agent initially. View it more than once at different times of the day. What seems like a quiet suburban street at mid-day can become a rush hour ratrun at 4.30. The first time you view will be with your heart, the second time will be with your wallet. On the second viewing make sure it is in the evening after the agent has closed. This will allow you to be unhurried and have the current owner on hand to get honest answers to the inevitable questions you will have. The remainder of this bit is, Im afraid, down to you as you are the only one who knows what you are looking for.

7) Pre Offer Information
Before considering what to offer you need to find out as much about the situation of the seller as possible. Find out if they have found a property. Is the chain above you complete and how long is it. How stable is the chain and how well established is it. Are there any other viewings booked or other offers on the table? Do you think there is any wor needing doing to it? Armed with this information you will then be able to present yur offer in the best possible light to the agent and seller. After all the name of the game is giving the seller what he wants, and that is allowing him to move upwards. It is not always about finances alone.

8) Submitting The Offer
There are many different schools of thought as to how much you should offer on a property. Never forget that the seller will have a level he needs to achieve to make his move possible, and that he will not have seen blistering increases in the value of his own property, which will reduce the available room for manouver.

This is where i personally take over for the buyer and begin submitting offers to the agent on their behalf. The offer must be presented confidently and with supporting information. Example:
" Mr & Mrs x have decided that the property 'x' is the one they wish to purchase. They have their funds in place with the mortgage agreed in principle, and are in a position to instruct a solicitor immediately upon the offer being accepted. They are in an excellent position and can close the chain above and get it moving swiftly. Bearing that in mind they wish to offer 'x' subject to the following conditions.
All future and current viewings are cancelled
The property is withdrawn from the open market immediately and they have exclusivity over it
The sold board goes up within 48 hours
They receive weekly updates on the progress of the chain.

An example of 'the norm' would be something like an asking price of £120,000 with your opening offers beginning at £105,000 - £108,000.

9) Know Your Limit
Always keep in mind the amount you are prepared to pay for the property. Increase your offers by small increments say £500-£1000 on a value as above. The worst they will say is no. This is the point where it is actually better to ask your broker to bid for you as they agent is then less likely to try to play any 'games' to increase the price. If you are offering yourself it is better to go into the agency office and place the offer in person. You are then more likely to actually witness the offer being put forward to the seller and there will be less likelyhood for mis-trust. It also helps build rapport with the agent.



If you are seen by the agent as serious, they will take you seriously. If you overcome the potential problems such as cost, mortgage etc before you even look, again you will be seen as serious about buying.

Build a relationship with the agent who is selling the property you wish to buy. You want your name to be at the forefront of his mind when he is on his way to value a property suitable. This way you may even get to view it before it goes to the open market.

Once the offer is accepted it is then down to you to fulfill your side of the deal. Instruct the solicitor without delay and get your broker to submit the full mortgage application without delay.

A good broker / solicitor will hold your hand until the day you move in.

This is not a definitive guide and I will add to it when i think of more ideas. However the basic model is something that I have used with all my clients and has, until now, proved very successful.

Hope this helps and apologies for the length of the post

Andy