First time Buyer tips

smcqis

I have created this as a help to first time buyers i have scanned these forums and these tips are a contributuion from alot of people on this forum so thank you to you all. I got most of these from this thread http://forums.moneysavingexpert.com/showthread.html?t=2218071

I thought this would make it easier to read, hope this help FTBs like myself. Thanks to you all :beer:

Mortgage Tips

• Have some savings to fall back on for unexpected costs, don’t put all it all into your deposit
• When selecting mortgage don’t tie yourself down too long incase it prevents you from moving house (check mortgage details to see if it is portable). Also check for if fees for overpayment and underpayment
• Never ever consider a mortgage over more than 25 years. The longer the period, the more interest you pay.
• Stick to the maximum you are willing to pay (comfortable budget) – as you will have bills and need a life too
• Don't assume your mortgage broker will get you the best deal. I secured a great offer through a well-known broker company and it was only on a when that I phoned the mortgage provider direct to double check. I ended up with exactly the same deal but without the £1,000 fee!
• Check IFA for best mortgage deals
• Get your mortgage from a bank/building society with a branch you can walk into instead of online/phone applications and dealing with useless callcentres.

Solicitor Tips

• Use a well regarded local solictor, via family/friend recommendation. Do not use solicitor or mortgage advisor tied to the developer/Estate Agent as they will increase fees to cover the commission
• As with solicitors, the best thing is to call a few to get some quotes, and judge how well you think you'll get on with them during your telephone call. Remember, this person is going to have access to all your financial details, so picking someone you generally feel comfortable with is a good guiding light
• Ask the solicitor if they are going on holiday at any point in the next 3 months from your offer being put in, if so, go elsewhere.
• Make sure the advisor youre picking is an IFA - Independant Financial Advisor
• Solicitors should be completely transparent when letting you know about their fees, so if they charge hidden costs at the end, I'd suggest contacting the Law Society
• Hassle your solicitor as frequently as needed, you're paying them so you have every right to ask them as many questions as needed, and if you haven't heard anything for a while then ring them and ask for updates.
• If your solicitor doesn’t play ball report them

Vendor/Estate Agent Tips

• Don't ever trust anything said by the vendor or estate agent, they are trying to sell. If you have any queries get the answers in writing – Check everything
• Make sure you confirm whether the carpets and lights etc are not being removed – CONFIRM IN WRITING. Make sure you get a full list of everything that is being left in the house and what isn’t IN WRITING.
• Estate agents can put a spin on things, but they can't lie to you. Ask them direct questions like "Have there been any disputes with neighbours?", "How many viewings have you had?", "How many offers have you had?", "What renovations have been done on the house?", "How old is the boiler?" etc. They must answer truthfully. If they don't know, ask them to ask the vendor. Note the answers and tell the solicitors what they said. Always tell your solicitor anything that the vendor tells you.
• Make sure you note down everything the sellers say they are leaving and things they will do before leaving e.g. repair a hole in a door or whatever. Get this in writing from them before buying.

House Check Tips

• Always get a full survey. Ensure surveyor is RICS chartered. The cheapest will get you a surveyor driving past the house and telling you what they think it looks like. In fact, on a mid range survey they don't even have to enter the property. If you're spending a £100k minimum, it is really worth paying £800 for an expert opinion. Not only that, but you'll know exactly what needs to be done and USE THIS TO HAGGLE PRICE DOWN
• Get a copy of the title plan and deeds from the land registry before you put an offer in. Always check out what is going to be your land. If garage in property make sure this is going to be in your ownership…don’t assume, ALWAYS CHECK!
• Beware of buying a property that has been built on a floodplain. The EA may tell you it has never flooded, try getting a good buildings insurance quote on one - you won't.
• Find out as much as you can about the house before you put an offer in. Download the title deed and plan for about £6. It normally contains a lot of history and what price the vendor paid for the house. Ask the council if the road your house is on is gritted. Find out if its on a bus route. Check with the planning team at the council if any work nearby is planned.
• Do your homework - check house prices, flood areas, noise, crime rates, planning applications etc. Don't make any assumptions, take the time to do these checks
• Get a electrical periodic done. We didnt (its £100) and we had to rewire at the cost of 3k.
• Especially ask for current electrical and gas installation checks/reports - refuse to buy without these being satisfactory (and remember to verify their authenticity with the firm that supposedly carried them out!)
• In the case of electricians, make sure that the company is registered with one of the industry compliance schemes, such as ELECSA, NICEIC, NAPIT etc. If they're not then they won't be able to certify the work they do for you which may cause you problems when you try and re-sell the house and have no certificates for work which was carried out. Not to mention the fact that if they're not registered then the work they do is possibly illegal and may be dangerous. The easiest way to check their credentials is to ask to see an up to date certificate from their trade association.
• Get a timber and damp inspection (but be aware they can often mis-diagnose damp problems, so get more than one), an electrical inspection, a gas safety inspection. Don't take them as gospel, but if they show up problems then tell the vendor about it look at whether to re-negotiate the price. Even what might seem like minor refurbishments to a house can be complex and expensive.
• It may be worth getting a second opinion on the results of problems in the survey as they could cost a lot more than predicted
• Check the area during school holidays and see how children talk (swearing). Drive down the street any night of the week to check for gangs hanging around. If you work try to get there in your lunch hour and check out the number of men walking around the streets and how they are dressed. This can indicate high unemployment and/or crime in the area.
• if there are a lot of For Sale signs up in one street thats a warning to anyone half-decent.
• REMEMBER - What you pay the mortgage company for is a valuation. The valuer might not even go in the house but simply drive by (if that) and compare with nearby houses whose values are known. All the mortgagor wants to do is make sure it will be able to sell and get its money back in the event of a repossession. You can opt to pay extra and get what is commonly called a Homebuyer's Report. I wouldn't bother. It will tell you little or nothing that you can't deduce for yourself by checking the house thoroughly as suggested by others here. A survey, or full structural survey, will be carried out by a surveyor who should have the skills to detect problems that lay people will miss. The surveyor will notice that things are out of square, that tree roots are growing into the drains, that roof timbers are rotten, that there are signs of subsidence, etc. The surveyor will have specialised instruments such as damp meters to help in the survey. It is generally well worth paying for a full structural survey, even on a brand new house, and there's a good chance of recovering the cost by getting the purchase price reduced to cover the cost of repairs.
• Always get numerous quotes for any job that needs doing and for the one you choose get a breakdown of FULL COSTS in writing

House Visit Tips

• Always do a second and even a third viewing at other times of the day/evening. Drive round the area at different times of day (we tried midnight at weekends etc)
• When looking around, show no interest, just ask for the details – DON’T RUSH INTO ANYTHING
• When you go for the 'home demo', take other people with you to try and spot the defects, preferably an electrician or builder etc.
• Furniture may be placed to hide defaults so always check behind
• Test everything before you buy - open and close all the windows, and shut every door behind you as you are being shown round to make sure they all work.. touch walls to make sure they are not damp...... open all the cupboards with a smile "i do hope you dont mind" - you are giving them many thousands... inspect inspect inspect... switch on lights in each room .... especially those with older switches....flush the toilet, test oven, lift carpets, test sink doesn’t leak and extractor fans etc ask them to switch on the boiler for you if its not on when you arrive, check radiators heat all way across, check roofspace, look behind furniture for damp. Check outside for cracks in the walls, bridged damp proof course, rotten woodwork, is there enough sockets? Do they work?. Take binoculars and check the roof for missing/slipped tiles and the gutters and woodwork for signs of problems (ideally, go on a wet day and see if there are leaks from the gutters). Go into Attic during day and look for light gaps. THIS SHOULD NOT BE ON YOUR FIRST VISIT BUT FINAL ONE BEFORE COMMITTING TO BUY
• Go for a long walk around the area, particularly if you have a dog - you'll end up traipsing the streets plenty anyway. People from the town/city should be able to tell you about the reputation of an area. Cars in the area, have a look at the cars in the area, are they clean/new/maintained. Should give you an impression of the area.
• CHECK OUT THE NEIGHBOURS - Even the best house in the world will be utterly ruined by bad neighbours. Visit at different times of day/night. Overgrown garden next door, junk outside, badly maintained? Beware. If you suspect then knock on other doors and ask about noise, neighbours, dogs etc. Have a little chat with someone who lives near, but not next to, the property. They'll be honest about what the area is like and are less likely to be either pally with the neighbours or anxious to get rid of them
• Check for rubbish next door (back and front). If you see some - avoid like the plague – Attracts rats
• Take a camera/camcorder when visiting house and make notes (ask the vendor if this is ok)
• Check the ceilings for brown stains
• White paint hides cracks on walls very well so check carefully
• I'd advise looking in the attic during daylight hours so you can see any crack or holes in the tiles.
• Buy with your head, not your heart! It may look fabulous during a viewing but you only find out the truth once you move in.
• Don't buy a house you don't have a good vibe about and if something niggles you when you visit - take note

Making an Offer

• There's no harm in making an offer lower than the asking price. If they aren't willing to drop then try and get some freebies thrown in like carpets and vinyl, turf for the garden, stamp duty paid, etc.
• When you do make the offer, go in low. Don't be afraid to put in silly offers – people may need to be in need of quick sale
• Go to "propertysnake" website and see how long the house has been on the market. If it has been hanging about, there may well be an issue.
  Go to "nethouseprices" or “rightmove” website and see what the house last sold for (and equivalent houses in the area). If you find discrepencies, try to establish why.
  Go to "upmystreet" website and see stats on the local area, crime figures, education, council tax.

Go to “zoopla” for house price comparisons

• Don't jump in too soon with a higher price if your original offer is declined. Vendors will push for as much as they can get but if you are prepared to play the waiting game then you can get a lower price.
• If you make an offer on a house, the estate agent cannot legally reject it without first asking the vendor.
• Keep your cards close to your chest and if the estate agent phoned and tell you other people are interested or about to view etc - be cool and don't say anything or show emotion.
• If you are paying a touch over a stamp duty level ie 128k or 255k split the price between the property and chattels (carpets curtains etc) ie 125 plus 3k chattels or 250 plus 5k chattels
• It doesnt make any difference if the seller "needs" £X to buy their next house, that fact doesnt mean their current house is worth what they are asking, why should you pay for them to get a better house??! A house is only worth what someone is prepared to pay for it!

General

• Don't get your home and contents insurance from your mortgage provider (or at least shop around before you do)
• Budget for furnishings you will need for your house (e.g. bed, sofa, telly etc). Remember some may take weeks to deliver but don’t buy too much incase deal falls through
• Give house a full clean when you arrive, inc ovens etc!!
• Check out whether you have to pay someone to manage the land around your house, i.e. communal parks, or just grass and plants by the path
• Transfer money correctly so it doesn’t cost you money (e.g. move into one account and get a bankers draft)
• Be aware of any properties made with Artex as this contains asbestos and is not good material
• Read the Housing Information Pack – Its free to buyers
• Don’t be scared to ask questions no matter how stupid you think they are
• "Which" guides to buying a house are good and should be used
• Create a spreadsheet to calculate the total floor area of each property to work out the price per square metre.
• If you see a better house while you're in the process of buying, or you get a bad feeling about the house, don't be afraid to pull out. Until you exchange contracts, you're free to pull out at any time. Don't worry about the wasted solicitors fees, surveys etc. if you pull out - far better to lose 500-1000 pounds than to end up in the wrong house.
• Ask who's responsible for fences and ask HOW that is/was determined.
• Home buyer reports are next to useless and not worth the money.
• Get multiple quotes on each step and ask if the quote they give includes ALL charges. Ask them to break the quote down.
• Beware of tradesmen who will a) only give you a verbal quote or b) claim they can start work straight away or fling a date at you without consulting a diary. Any good tradesman will give you quotes or estimates in writing
• Trust no one. Apply common sense. Do the research for yourself.
• Don't fall in love with a place and don't go over your budget.
• Never buy a property that has had major damp or dry rot problems
• Never be desperate for a place to live when buying a property
• REMEMBER – you usually get what you pay for, so don’t necessarily go with the cheapest

Future Re-sale Tips

• Don't just look at what is right for you, look at resale as well. You may not mind being on an A road or next to a motor way but the majority of others will. Think twice about buying on a busy road – noise, parking issues?
• Check the size of the garden, especially if you are buying a house that could be sold on to a family. Postage stamp-sized gardens will take longer to sell.
• Check what is around the property. Large powerlines at the bottom of the garden might not bother you, but it may prove impossible to sell onto anyone.
• Little things, such as a south/east facing garden (check effects of trees etc around blocking light), off road parking or a corner plot may be the difference between selling and not selling when it comes to moving
• The house price is set by the value of the street, not by the value of your house improvements. Buy the worst condition property in the best area
• Even if you don't care about good schools proximity or public transport links etc...,do take it into account. Your potential buyer in the future might care.
• Better a smaller house in a good area than a huge house in a bad area - think resale value.
• Don't move into a property right beside a train line, car park, woodland path (if youngsters might use it for motorbikes or late night jollies), pedestrian crossing, hospital, school or pubs
• Avoid buying a house with a right of way or shared access etc with neighbours. They might be ok but the could move out next week and you could have the neighbours from hell

ray123

I am looking for advice on what information I should and should not disclose to an estate agent?

Any tips would be greatly appreciated!

bodgerx

smcqis wrote: »

Never ever consider a mortgage over more than 25 years. The longer the period, the more interest you pay.

Then why go for 25? Why not 20 or 15? Surely this will be down to how old you are, and what you are comfortable with?

smcqis

ray123 wrote: »

I am looking for advice on what information I should and should not disclose to an estate agent?

Any tips would be greatly appreciated!

I take it you are buying not selling?

bodgerx wrote: »

Then why go for 25? Why not 20 or 15? Surely this will be down to how old you are, and what you are comfortable with?

Yes to an extent the lower the years the better as you will pay less interest but if you cant afford a 25 pound mortgage do you really want to be stuck with a high mortgage at the top for 35 years paying so much interest especially at the start. The tips presented above are what ppl on this forum have experienced and learned over the years, it should be used as a guide not precise information to everyone

ray123

Yes i am looking to buy.

smcqis

What information are you referring, i would let them know you have the money for starters, if you have no chain i would let them know this, if you were really interested in the property, i wouldnt make let them know this, only that your interested but have other properties to look at

Squish_21

smcqis wrote: »

Mortgage Tips

• Never ever consider a mortgage over more than 25 years. The longer the period, the more interest you pay.

Dont agree with this. Personally I was 20 when I bought my first home so got a mortgage over 35 years to get the repayments lower. I overpaid from day 1 but knew if i ever started to struggle I could switch back to the minimum payment.

Worked out great, very glad I did it that way.

Squish_21

All house buyers may find this site useful...http://www.home.co.uk/guides/buying/toc.htm

calebdylan

Almost 80% of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes. You've probably defined your goals and have a pretty good idea of the type of home and neighborhood you want. By the time you reach your real estate agent's office, you are halfway to home ownership.

ciano125

ray123 wrote: »

I am looking for advice on what information I should and should not disclose to an estate agent?

Any tips would be greatly appreciated!

Give them no details what so ever about your financial position. They can be very sneaky and ask you in a friendly way how much deposit you have, or what the maximum you are happy to go up to is, THEY WANT THIS INFO TO USE AGAINST YOU! Don't forget, they are working for the other side, they want you to spend as much as possible, so if you tell them how much deposit you have, they can quite easily work out how much you can spend. If you then go in with a lower offer than that, they will tell the sellers you can pay more. Simply say that you are not going to discuss any financial arrangements with them, end of. Neither should you EVER use their mortgage "advisor" either, again, its just showing them all your cards. If they say you have to, tell them you do not have to at all, and neither will you. You can go straight to the vendor if they would prefer.

By all means tell them that you've got your mortgage sorted, mortgage in principle in place, are first time buyers/have an offer on yours etc, and are ready to go. That is all they need to know.

cashbackproblems

Something i did when buying my apartment as a FTB was to add my dad on the mortage (joint morgage) as i am single and this allowed me to borrow ALOT more and surprisingly the monthly payments werent even too high. Obv you have a bigger morgage and therefore you need to save for a bigger deposit but buying in london makes this the only option.