First time buyers questions

Jasper281

Hi all,

We are first time buyers and are ready to buy a house. We have found one we really like but viewing a few more just in case and to confirm how much we do like it.
In terms of placing an offer we've done some research on local house prices and the nationwide house price calculator has come up as valuing 8,000 under the asking price of the house. Zoopla also gives a lot lower estimate. I have read to take zoopla with a pinch of salt. How accurate is house price index and would this influence the valuation you have from the lender? We're just not sure we're to go in with an offer because of this lower valuation. The house next door which is exactly the same spec is valued at the same as our asking price. There both 6 year old new builds so no much room for drastic home improvements to increase purchase price. If we were to make an offer is it best to provide evidence to the estate agents as how we came to that offer e.g. Local house prices and HPI?

When researching solicitors do they charge and standard fee so could I ring around and ask for there prices for conveyancing and compare all the prices?

Finally do the vendors have a legal time limit they have to be out by?

Thank you in advance

princeofpounds

zoopla is not accurate. Easily incorporate 25% margin of error up or down. Which is enough to make it meaningless in general. It may work better on an estate of identikit houses.

do not bother with providing evidence to EAs, unless your offer is markedly different to asking prices for some reason they may have overlooked.

When picking solicitors make sure they are quoting on a comparable basis. Some will include disbursements, some will make them 'extras'. Some will include VAT, some won't.

As for 'deadlines to be out by', you agree contracts on exchange. At exchange a completion date is set. This is the date they are supposed to give you vacant possession of the property.

If they don't, you cannot force them out immediately, but the penalties for completion can be fairly severe so it's very rare.

Jasper281

Thank you for your reply. So zoopla isn't accurate but what about the house price index?

At what point do you instructor a solicitor once you've had a mortgage offer approved or before?

princeofpounds

So zoopla isn't accurate but what about the house price index?

There are many house price indexes. They are generally good indicators of aggregate house prices. They are not typically all that applicable to individual properties, although it's always worth bearing in mind.

The problem is that these indexes often cover very large areas. Knowing that houses have gone up 10% in the South East tells you nothing about the village that has gone up 20% thanks to a new rail link to London (for example). It tell you nothing about a house that has been extended, or a house where the previous sale went through at a low price due to a rushed vendor, or a house that had views of a field that has now been built on.

There is no scientific way to value a property. The closest you can get is try to value it versus recent comparable transactions in the area (that's what surveyors do). You should also incorporate previous sold prices and house index movements as a sense check (this is all that zoopla does basically). But you will always have to adjust for individual preferences and the individual circumstances of a property.

At what point do you instructor a solicitor once you've had a mortgage offer approved or before?

Nothing wrong with talking to solicitors for quotes etc. beforehand, but you only appoint one when you have an idea of your mortgage. The solicitor will be acting for your mortgage company too and so they might need to be on that lender's specific panel.

jrtfan

Re deciding on a solicitor - I obtained 3 separate quotes and then checked to see if they all included the same services or if I'd be looking at 'extras'. VAT is one thing to bear in mind, as it can be quite a hefty amount - some solicitors include it as part of their quotations and others don't.

Procrastinator333

When picking your solicitor, don't just go for price. That is part of the equation, but you really want a good and helpful solcitor. Especially if something goes wrong. Ideally find one via word of mouth. If not, then personally I would say find a local solicitor who deals with property who has an office you can easily walk in to. They will probably cost a bit more than a chain, and a lot more than an online solcitor. But, they are far less likely to lose the contract papers, not return your calls and emails, send you the worng forms etc.

As to when to appoint a solcitor, up to you, I would suggest get quotes when you are house hunting. Then once an offer is accepted, accept the quote you are happy with.

And "when must the vendor be out". Assuming England or Wales, until you exchange, anybody can pull out at any time they like and it is just tough on the other parties, nobody is committed to anything. You will discuss competion dates when you are closer to exchange. On the day of completion, it is normal for the vendors to be required to hand the keys in by 12 to the Estate Agent.

In terms of exchange and completion. Exchange is when you exchange contracts. This is normally 1-2 weeks before completion. After exchange, the penalties for anyone who pulls out are very severe, it pretty much never happens. You agree the completion date before exchange and the completion date is written in to the contracts.

Jasper281

Ok thank you for your help all. We saw a house we like on Tuesday
morning and want to book a second viewing. I work shifts and my boyfriend works till 6pm weekdays. We could view again Saturday afternoon if it's convenient for the vendors but is this too soon (twice in the same week) appearing too keen? We know that have a young baby so a later mid week viewing might not be suitable which means waiting till next weekend with the fear someone might get in before us.

monty-doggy

When I bought my house I viewed Monday and put an offer in Tuesday morning, there were seven other viewings lined up so my offer was subject to no more viewings. I had been beaten to offers on three other houses! If you like it get an offer in ASAP!

princeofpounds

We could view again Saturday afternoon if it's convenient for the vendors but is this too soon (twice in the same week) appearing too keen?

No. It's business-like to get things done promptly.

Whilst it is always useful to make sure that you don't appear in love with a property, it's not about being totally poker-face unless you are mainly concerned about price optimatisation only (such as buying an investment property, where it doesn't matter which you get as long as the price is right). Nothing wrong with saying you like a property, just don't say you love it.

brenda10

monty-doggy wrote: »

When I bought my house I viewed Monday and put an offer in Tuesday morning, there were seven other viewings lined up so my offer was subject to no more viewings. I had been beaten to offers on three other houses! If you like it get an offer in ASAP!

Love your note at the bottom about your baby bean, congratulations.

Jasper281

Booked a viewing for Saturday, obtained solicitors quotes and compiling a list of questions to ask vendors and things to look out for