Charlene's FTB - Diary 2007

CharleneUK

I appreciate some of these questions may be seen as stupid, but I need to know, so don't jump down my throat please.

This morning, we received a letter from the council approving us for the assisted private purchase scheme (A scheme where the council gives you a grant of up to £30,000 to buy a home on the open market). They say we are now free to find a property, but must send them details of said property once an offer has been placed and accepted. So, here are the questions.

*When you go to view a property, are you allowed to ask the vendor whatever questions you want, or should you go through the estate agent? Basically, what is the norm?

* Are you allowed to view the property on your own, i.e without the estate agent?

* Once your offer has been accepted, I know you must ask to have the property taken off all websites and the 'sold' sign put up, but how fast does this happen in reality?

* I read on a site that some estate agents have a policy against 'gazumping' does anyone know which particular ones there are?

* Is this the general order of things? Offer accepted --> Valuation/survey of property --> All the searches etc --> Exchange contracts --> completion?

* How long does it generally take from an accepted offer to exchanging contracts?

* What generally holds things up when buying a home? I know it can be a range of things combined, but is there any one thing that 'always' tend to slow the process?

* Has any one found a good mortgage deal solely by comparing lots of comparison tables, or does everyone agree that the only one to secure a great deal is by going through a broker? If so, how much roughly does a broker charge?

* I know on this board many people say that properties are priced roughly 10% more than valued, as they expect offers at 10% less, do the majority of people still feel this is the case?

Sorry for all the questions, but I want to be armed with as much 'been there, done that' information as I can, as well as general information on the internet.

Thank you so much in advance.

Tiger_greeneyes

*When you go to view a property, are you allowed to ask the vendor whatever questions you want, or should you go through the estate agent? Basically, what is the norm?
Ask whoever you want - if the vendor is approachable then ask. If the property is a repossession, for instance, ask the agent.

* Are you allowed to view the property on your own, i.e without the estate agent?
This depends on the vendors wishes or whether the property is empty. If the vendor doesn't mind doing the viewings then you go alone.

* Once your offer has been accepted, I know you must ask to have the property taken off all websites and the 'sold' sign put up, but how fast does this happen in reality?
It really depends on how fast the estate agent works. The vendor might not want a sold sign or the property off the market immediately - play it by ear.

* I read on a site that some estate agents have a policy against 'gazumping' does anyone know which particular ones there are?
I've not heard of it but I'm sure someone will know

* Is this the general order of things? Offer accepted --> Valuation/survey of property --> All the searches etc --> Exchange contracts --> completion?
Once your offer is accepted then you need to give your solicitors details to the estate agent. It's a good idea to get quotes beforehand so you're 'good to go'. Otherwise, you've got it spot on

* How long does it generally take from an accepted offer to exchanging contracts?
Generally 6-8 weeks - but it's never set in stone. Bear in mind that chains or properties needing work (for example) can take much longer.

* What generally holds things up when buying a home? I know it can be a range of things combined, but is there any one thing that 'always' tend to slow the process?
Anything can slow it down - there's no one thing in particular. The solicitor may be on holiday or bogged down with work, the lender might have a really good product and be inundated with paperwork, the vendor might lose their property - the list is endless.

* Has any one found a good mortgage deal solely by comparing lots of comparison tables, or does everyone agree that the only one to secure a great deal is by going through a broker? If so, how much roughly does a broker charge?
I would always go through an independent IFA - and I'd only use one that's registered with the FSA. Their commission usually comes from the lender but you do have the option of paying for it yourself - always ask, although they should explain that to you anyway.

* I know on this board many people say that properties are priced roughly 10% more than valued, as they expect offers at 10% less, do the majority of people still feel this is the case?
It's always up for debate. Basically, always try an opening offer and see how it goes!

Good luck

Doozergirl

*When you go to view a property, are you allowed to ask the vendor whatever questions you want, or should you go through the estate agent? Basically, what is the norm?
You can ask the vendor whatever you want, for obvious reasons they are likely to know more than the EA!

* Are you allowed to view the property on your own, i.e without the estate agent?
It depends on the house and the EA, many EAs accompany all their viewings, others let the vendor choose, others expect the vendors to do it.

* Once your offer has been accepted, I know you must ask to have the property taken off all websites and the 'sold' sign put up, but how fast does this happen in reality?
A few days. I do a lot of looking for property and I've never been invited to view or offer once an offer has been accepted. It is normal practise for the EA to take details of interested parties in case the sale falls through.

* I read on a site that some estate agents have a policy against 'gazumping' does anyone know which particular ones there are?
Ultimately, the EA wants a sale, there is no use getting several people to fight over one property when they have dozens of others to sell. They are however obliged to pass on all offers received.

* Is this the general order of things? Offer accepted --> Valuation/survey of property --> All the searches etc --> Exchange contracts --> completion?yes, basically

* How long does it generally take from an accepted offer to exchanging contracts?
How long is a piece of string? Average is about three months froma complete chain, not just offer accepted, but it really does mean nothing. Quicker usually if there is no chain, often longer with one. Leasehold takes longer than freehold

* What generally holds things up when buying a home? I know it can be a range of things combined, but is there any one thing that 'always' tend to slow the process?
Hundreds of things. Search and survey results, mortgage company hold ups, mortgage refusals, vendors being unable to find a property, massive egos, inflexible people, chinese whispers, sales completely collapsing up/down chain because of those reasons

* Has any one found a good mortgage deal solely by comparing lots of comparison tables, or does everyone agree that the only one to secure a great deal is by going through a broker? If so, how much roughly does a broker charge?
Using a broker saves you a hell of a lot of time and effort in finding the deal because they do it for you and have access to deals that you won't find. A good one will hold your hand through the process which is useful for a FTB. Many mortgage brokers work off commission on the product they sell you, which is declared to you in the documentation, so you are not charged directly. Even a high street bank will pay commission to their advisors so there is nothing unusual in that.

* I know on this board many people say that properties are priced roughly 10% more than valued, as they expect offers at 10% less, do the majority of people still feel this is the case?
I think this is rubbish personally, you just have to research, research, research to get yourself comfortable with what an acceptable asking price would be for the type of property you are looking for. Then once you've established what you will pay, you find the lowest price a vendor will take by nerves of steel and sheer persistance.

Sorry for all the questions, but I want to be armed with as much 'been there, done that' information as I can, as well as general information on the internet.
It's cool. They're really good questions

olly300

CharleneUK wrote: »

*When you go to view a property, are you allowed to ask the vendor whatever questions you want, or should you go through the estate agent? Basically, what is the norm?

There is no norm.

Take someone with you when viewing like a trusted friend or relative particularly if they own their own property and have done renovation work, or are in the building trade.



* Are you allowed to view the property on your own, i.e without the estate agent?
I never was.

I was sent to properties that were occupied by tenants or the vendor, and they showed me round. These viewings where better IMHO.

On more than one occasion I could see the EA cringing if they were there, when the vendor was taking me round as the vendor would say something like this cupboard is too small for a bike after the EA said that they had a cupboard is big enough to store bikes.

* Once your offer has been accepted, I know you must ask to have the property taken off all websites and the 'sold' sign put up, but how fast does this happen in reality?
Depends on the EA.

* I read on a site that some estate agents have a policy against 'gazumping' does anyone know which particular ones there are?
Two chain EA phoned me up to get me to gazump. There as one chain and a smaller local one would refuse to give out or let me view a property had an offer on it. I ended up buying through a smaller EA.

* What generally holds things up when buying a home? I know it can be a range of things combined, but is there any one thing that 'always' tend to slow the process?
In no particular order and having talked to friends' and family in past two years who have brought property.

Vendors - not being sure if they want to sell it or being located abroad so documents have to be sent by post to them to sign and returned

Sellers - not being organised i.e. getting a mortgage sorted out

Solicitors - making demands for documents that don't exist from the vendors and being told where to get them. (Mostly leasehold properties) Going on holiday with no one else who can take over. Or simply saying they are busy and they will deal with you when they can.

Searches - can take up to 6 weeks





* I know on this board many people say that properties are priced roughly 10% more than valued, as they expect offers at 10% less, do the majority of people still feel this is the case?
Some EA advertise £20K more than the price they want for a property while others expect 95-97% of advertised price. Do you research for each EA.

CharleneUK

Thanks so much! It's all becoming a bit clearer now!

Just had an EA on the phone for a property I wanted to view, but she is saying that I'd need a minimum of £40,000 deposit due to the nature of the property, so I asked what she meant, and she said it's because it's of concrete build?! I asked exactly what that meant, and she said we'd have a chat before we viewed the property anyway, and that I wouldn't be able to go through my normal high street lender!? Argh, this is what I dread, going into a situation without knowing certain things. Any ideas?

cattie

A concrete property is of non standard construction, ie such as brick & many lender's have a limit of what percentage of purchase price that will grant on a mortgage in properties of this type. In many cases it's 75% of required amount, so buyer's need to have a large deposit to cover the shortfall if they wish to buy the property.

In your original post you asked how long between offer & completion, but I think you need to bear in mind that with a scheme such as the assisted purchase scheme, things will probably longer than somebody buying a property in the normal way & not having to wait for approval & agreements from the council.

Tiger_greeneyes

If you're seriously thinking of buying a non-standard construction property like concrete, research the material thoroughly. For instance, there's a defect named 'concrete cancer' - once the concrete starts breaking down (ie due to moisture penetration), it keeps going. It can be remedied, but you'd be looking at building a brick skin outside the concrete - very expensive to do and could well see you having to find another £20k.

Lenders obviously know this and it's the reason they need you to pay the higher amount of deposit - so if the worst happens they don't lose out.

The key to this is research!

CharleneUK

Thank you both!

Cattie, I think I will need to get onto the council and ask how long their end of the process takes, just to get an idea.

I wasn't really looking to buy concrete build and after that post, don't think I like the sound of it that much! The EA said, most properties in the area i'm looking for are fairly cheap for this reason.

lypsey

FTB , take a look at https://www.housepricecrash.co.uk

You may think twice about buying . I am the first to admit , it is a very one sided website , but there are some very clever people on there.

Take 5 minutes going through BBoard but more IMPORTANTLY take a look at the Newsblog , you will see articles from The Telegraph , Times , FT that don't give a good write up on the housing market

Good luck

Tiger_greeneyes

I've been on that forum and it's full of negativity.

My own theory is to ignore to a certain degree what's going on and live my life.

I'm in a house where I would be happy to stay for a number of years if times get tough, I've not overstretched my finances (whilst I don't have a mortgage, my partner does - I paid 75% cash for the house) so if the interest rates rise we won't get caught out. If the worst happens then the house will be worth less than we bought it for - but it's never going to be forever.

If you want a home then ignore the hype (prices are going up/there's gonna be a crash) and make sure you could afford a mortgage if the rates hike. Why not go for a 10/15/25 year mortgage on a low fixed rate? You'll never be caught out that way!

You cannot let a load of speculation determine how you live your life - just make sure you've adequately considered the financial implications.

Remember, you have to live somewhere - whether you pay mortgage or rent!!!

Whatever happens with the housing market, it isn't life or death!!!

CharleneUK

I have looked at that site before, and agree it is very one sided, but as tiger green eyes states, I can't wait, wondering what may happen.

I've had a mortgage agreed in priniciple with nationwide at 5.3% I could opt for 5 or 10 years, I was going to opt for 10.

For me, buying a home is not simply jumping on the wagon, we are out of room and out of options here, my daughter is soon turning 11 and needs her own space, would be great for the kids to have a garden too. I was saving for years before meeting my husband and we've saved together for a few more and have saved up some to put on the £30,000 the council will give us, now is the time, the right time for us.

Thanks all.

Any more advice, stories etc, more than welcome, I love reading about everyone's different experiences!

Here is the house, if it's of any interest: http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=189198&agentid=04956