Yet another clueless first time buyer

myoung48

We are looking to buy are first home and are confused on a number of fronts.  The answers to all the below will probably be obvious to those with more experience.  So here are the dumb questions.  We have a reasonable deposit (20%) and a mortgage in principle from habito.com.  We are looking at properties at the moment, but haven't made any offers yet.
1. I know we need a solicitor at some point, but are unclear when we should arrange for one and when they should get involved in the process.  Should we make our initial offer ourselves to the estate agent or should we have the solicitor do it for us?
2. In the same vein, how do we find a good solicitor?
3. When we make an offer, what are the key things to include other than just the price?  We know we should say something along the lines of "subject to surveyor's assessment", but are there any other caveats that are useful to include?
4. If we make an offer, is the agent obliged to take it to the owner?  Basically are we negotiating with the owner, with the agent acting as an intermediary, or with the agent directly?  E.g. does the owner give the agent their acceptable price range and they then sort it out?

Thanks in advance.  The broad outline of the process is clear, but advice on the details would be greatly appreciated!

AdrianC

myoung48 said:

We are looking to buy are first home and are confused on a number of fronts.  The answers to all the below will probably be obvious to those with more experience.  So here are the dumb questions.  We have a reasonable deposit (20%) and a mortgage in principle from habito.com.  We are looking at properties at the moment, but haven't made any offers yet.
1. I know we need a solicitor at some point, but are unclear when we should arrange for one and when they should get involved in the process.  Should we make our initial offer ourselves to the estate agent or should we have the solicitor do it for us?

You will need to know who you want to use when you put your offer in - so identify them, have initial conversations to narrow your choice down. They know how it works, and they know that you need to find the property. The "memorandum of sale", which formalises the offer and acceptance, can't be issued without solicitors on both sides.

2. In the same vein, how do we find a good solicitor?

Word of mouth! Do you know anybody who's bought recently in your area? Ask for suggestions at work, or on a local area FB group?

3. When we make an offer, what are the key things to include other than just the price?  We know we should say something along the lines of "subject to surveyor's assessment", but are there any other caveats that are useful to include?

There are no "magic words". Of course it's subject to the survey, legals etc. It's not legally binding until exchange of contracts - either side can pull out for any reason or none. And exchange may be the same day as completion...

4. If we make an offer, is the agent obliged to take it to the owner?  Basically are we negotiating with the owner, with the agent acting as an intermediary, or with the agent directly?  E.g. does the owner give the agent their acceptable price range and they then sort it out?

They're legally obliged, unless the vendor's given them grounds to ignore anything. So the vendor may have said to the EA "I don't want to know about anything below £X", or they may not have. The vendor does all the deciding.

AnotherJoe

myoung48 said:

We are looking to buy are first home and are confused on a number of fronts.

The answers to all the below will probably be obvious to those with more experience.  So here are the dumb questions.  We have a reasonable deposit (20%) and a mortgage in principle from habito.com.  We are looking at properties at the moment, but haven't made any offers yet.
1. I know we need a solicitor at some point, but are unclear when we should arrange for one and when they should get involved in the process.  Should we make our initial offer ourselves to the estate agent or should we have the solicitor do it for us?

Unless you are in Scotland the offer goes from you to the vendor via teh EA. So, tell the EA.

2. In the same vein, how do we find a good solicitor?

Ask around, ask friends, ask in here "anyone know a good solicitor in town X", look on review sites.

3. When we make an offer, what are the key things to include other than just the price?  We know we should say something along the lines of "subject to surveyor's assessment", but are there any other caveats that are useful to include?

I would NOT say that, for two reasons. (1) That's pretty much understood by everyone already, indeed plus all sorts of other caveats up to and including "if i change my mind".  So need to state that. (2) By stating that, you are making the vendor feel you are already looking for some reason to lowball the price you just gave. So, no, dont say that.

The things that are reasonable to add might be,things that are pseudo part of the house but could be excluded but you would like. For example, "to include all white goods in the kitchen and utility", "including the summerhouse in the garden" , "including all curtains and blinds and light fittings"

4. If we make an offer, is the agent obliged to take it to the owner?  Basically are we negotiating with the owner, with the agent acting as an intermediary, or with the agent directly?  E.g. does the owner give the agent their acceptable price range and they then sort it out?

Yes, but ...... although they are legally obliged to, they might say "you need to speak to our mortgage adviser first" and although strictly speaking this isnt allowed theres a loophole, they can say "the vendor wants us to financially vet buyers" and can sneak it through under that pretence.

They do also have a legal duty under money laundering rules to check the source of your funds anyway. So, even if you have an awesome mortgage offer from from Habito on account of you both work there, you might need to spend 15 minutes wasting their mortgage advisers time because they get paid on providing leads to an in house mortgage adviser.  You can probab;y kick up a stink and avoid it,  but given these days its going to be a zoom call anyway, Id just go with the flow.

bex2012

With the solicitors, phone around and get quotes from at least 3-4 different ones. Our first choice solicitor couldnt act for us as our vendor was using them and the one the EA recommended was £2k more expensive than the first one (and based 100 miles from where we live).

Indigo_and_Violet

Re: solicitors, if you want to get really advanced you can have a shortlist of different ones that are suited to different purchases.
Our mortgage adviser recommended one who was expensive but nearby and very personable. 
We got recommendations from friends for two others, both distant from us (we're in London so basically anywhere else is cheaper!). Both seemed competent but not quite as service-orientated.
Given that our sale was supposed to be straightforward (us as FTBs with no chain, a seller moving into rented with no chain) we went for the cheaper solicitor. It then turned complicated and at times we wished we'd paid extra for the solicitor who would hold our hand a bit more, but it did all work out in the end and we saved about £1000. 
If I was buying a property I knew came with complications, I might have chosen the more hands-on solicitor from the get go. 

Blue_bell_20

bex2012 said:

With the solicitors, phone around and get quotes from at least 3-4 different ones. Our first choice solicitor couldnt act for us as our vendor was using them and the one the EA recommended was £2k more expensive than the first one (and based 100 miles from where we live).

As said above, getting multiple quotes is good. 

In regards to the distance I don’t think it matters. Ours are 100+ miles away, they have been great so far. Sure it means we can’t easily pop into their office, however with phone and email not much (if anything?) is needed in person. I guess finding responsive solicitors is a key point. However even if local, going in to the office wouldn’t necessarily gain that much information. 

AdrianC

Blue_bell_20 said:

bex2012 said:

With the solicitors, phone around and get quotes from at least 3-4 different ones. Our first choice solicitor couldnt act for us as our vendor was using them and the one the EA recommended was £2k more expensive than the first one (and based 100 miles from where we live).

As said above, getting multiple quotes is good. 

In regards to the distance I don’t think it matters. Ours are 100+ miles away, they have been great so far. Sure it means we can’t easily pop into their office, however with phone and email not much (if anything?) is needed in person. I guess finding responsive solicitors is a key point. However even if local, going in to the office wouldn’t necessarily gain that much information. 

While "popping into the office" can be a good thing normally, even if the office is right next door, it's not going to be on the cards right now anyway...

greatcrested

myoung48 said:

1. I know we need a solicitor at some point, but are unclear when we should arrange for one and when they should get involved in the process.  Should we make our initial offer ourselves to the estate agent or should we have the solicitor do it for us? Fi you are in Scotland, your solicitor. If you not, via the estate agent.

2. In the same vein, how do we find a good solicitor? Ideally personal recommendation. Failing that shop around. Compare prices (watch out for low quotes with 'xtras') but also.compare helpful reactions when you phone/read reviews. Do not use the EA recommended conveyancer, and if buying a New Biold, do NOT use the developer's recommended solicitor.
3. When we make an offer, what are the key things to include other than just the price?  We know we should say something along the lines of "subject to surveyor's assessment", No need. All offers are subject to contract anyway so you can always pull out.  but are there any other caveats that are useful to include? Make clear you have funding. Have you MIP handy.
4. If we make an offer, is the agent obliged to take it to the owner?  Basically are we negotiating with the owner, with the agent acting as an intermediary, or with the agent directly?  E.g. does the owner give the agent their acceptable price range and they then sort it out? Seller makes final decision, but may have given the agent specific instructions (eg "I don't want to se offers below £X"). Otherwise all offers get passed on to seller.

Learn how the whole process works end to end eg

https://www.waterstones.com/book/buying-and-selling-a-home-for-dummies/melanie-bien/9780470994481

https://www.which.co.uk/money/mortgages-and-property/first-time-buyers/buying-a-home

hazyjo

Your solicitor should be on your lender's panel. So by all means appoint (not instruct) a solicitor, but you should keep that in mind when speaking with a broker or direct with a lender.

NameUnavailable

IMPORTANT regarding solicitors/conveyancers, you need one that your Mortgage provider is happy with, otherwise you'll end up paying for two solicitors, the one you chose and the one the Mortgage co is happy with.

Some lenders have a link on their website where you can check if a firm is on their panel.

pinkteapot

I've never had a solicitor chosen when I've made an offer. I have a few solicitors listed from recommendations. As soon as an offer is accepted I ring round those, get quotes, pick one and tell them I'm appointing them. You can do all that within a day - most will quote over the phone (following up with a confirmation email), or they'll take the details then email you. Quotes are based on what you're paying, so you need to know your final accepted offer to get an accurate quote. Once I've picked I ring the EA back and give them the solicitor's details. So that gets done within about 24 hours of offer being accepted.

As others have said, it's cost-effective to ensure the solicitor is on your lender's panel. If you know which bank you're using for your mortage, you can ask the solicitor whether they're on that panel when you ask for a quote (or check in advance if the lender publishes their lists online).

As above, PHONE don't email. Everyone seems to be becoming averse to making phone calls these days. The process of getting solicitor quotes is MUCH quicker by phone as they can ask you for all the info they need to quote without a chain of emails going back and forth.