First time cash buyer - where to start .

sidneyyoungblood

A bit of advice please .

I have never having bought a property before and not too sure where to start.

I am a cash / first time buyer ... 


Spoke to a solicitor who said they will only take me on once I have found a property and then they could start checking my finances  etc .

The estate agent says that I cant view any until I get checks done to see what position I am in- (would this be done by them ?).

I thought being a cash first time buyer would make it easier but seems not  , I was tempted to get a mortgage in princiiple with my bank and see if that helps but with the intention of not using it .

Any help would be appreciated , 
thanks 

Exodi

I think you just misunderstood how the process typically works:

• You find some properties you like, rightmove is usually most peoples preference.
• You request to view them, where the estate agent may ask for proof of funding (which would either be a mortgage in principle, or for you statements showing the cash balance)
• You view the property, and if it is the house you want, make an offer, it either gets accepted, countered or rejected. You may also get a survey (which is usually recommended)
• If your offer is accepted, you instruct a conveyancer to process the transaction for you
• Wait

As you've found out, you don't approach a solicitor first without knowing what house you want to buy, likewise some estate agents try cut down on window-shoppers/tyre-kickers by requesting proof of funding before they allow you to view.

Neither has anything to do with Mortgage V Cash. Being a cash buyer is almost certainly better as it reduces the time and uncertainty of the mortgage process, which most leverage to make lower offers.

Also, just as a heads up - I know you're a FTB but try to be patient. Many loathe (and some avoid) selling to FTB's because they very often have wildly unrealistic expectations of the process and spend every waking moment chasing any one and every one for updates. Set your expectations from the start that this will take months, and calling your solicitor every hour of every day for updates on whether they got your searches back does not speed the process up. Some of this forum of course will counter this by saying that's what their paid for, but personally in the grand scheme I think conveyancing costs are very low relative to other legal services.

gwynlas

There is nothing wrong with approaching a number of solicitors to get estimates for possible conveyancing and they will advise you of additional charges for searches etc.

You should have some idea of what you can afford on your budget and where you wish to live.
Rightmove and Zoopa are the most regularly visited sites and you can adjust filters for various factors.

The most obvious point is location but you might also want to consider local transport and amenities.

Priorr to arranging viewing check out properties from the outside there mightt be neihbourhood issues such as poor parking lack of upkeep etc which might put you off before stepping inside.

Ideally take a friend or relative as they might spot issues you miss.

Check out other posts re buying and don't show too much enthuisiasm or make offers straightaway EAs  are salesman at the end of the day, might not know as much as they should about the property or area and gloss over inadequacies.

Herzlos

The estate agent will just want some indication that you are in a position to proceed with a purchase - so either having the money available or a mortgage agreement in principle. They won't be doing any deep checks on it, the solicitor will do that once an offer has been accepted and the conveyancing starts.

You should be able to show the estate agent a statement with proof of funds and that should be enough for them at this stage. You'd need to discuss with the estate agent what is sufficient for them though as some will be stricter than others. 

Smalltownhypocrite

I was a first time cash buyer and no you don't need checks first.

1) You look on rightmove etc... see what you like and request a booking.

2) they contact you to book, usually they will ask your position through a serious of questions (are you selling? if so are you SSTC, are you a first time buyer, mortgage or cash, will it just for you or in 2 name etc...) and book you in

3) you view it, they may contact you with other houses they think you will like too

4) if you like one you make an offer, my advice would be to send a bank statement showing the money you are buying with with your offer (they take it more seriously if you do but you don't have too)

5) they either accept or reject your offer (if they reject they might negotiate)

6) if they accept then the EA will say congratulation and ask for your solicitor details to send the memorandum too, at this point the EA will likely ask to see a bank statement as proof of funds, your id (drivers license/passport etc...) they may also charge you a bit for anti-money laundering checks before marking it as SSTC online.

7) your solicitor does all their check and equerries (you can choose to have searches or surveys)

8) you exchange

9) you send money to solicitor

10) you complete

Albermarle

I thought being a cash first time buyer would make it easier but seems not  , I was tempted to get a mortgage in princiiple with my bank and see if that helps but with the intention of not using it .

Your main attraction to a seller as a FTB is that you do not have to sell a property, to fund purchase of a property. Whether you buy with 100% cash or with a mortgage is not that important. In fact some say cash buyers are more likely to pull out of a sale, than someone who has gone to the trouble of arranging a mortgage.
As a previous poster some sellers may be wary of inexperienced FTB's, but I would guess the majority of sellers would not think that deeply, being in most cases not that experienced in this process themselves.

35har1old

Exodi said:

I think you just misunderstood how the process typically works:

• You find some properties you like, rightmove is usually most peoples preference.
• You request to view them, where the estate agent may ask for proof of funding (which would either be a mortgage in principle, or for you statements showing the cash balance)
• You view the property, and if it is the house you want, make an offer, it either gets accepted, countered or rejected. You may also get a survey (which is usually recommended)
• If your offer is accepted, you instruct a conveyancer to process the transaction for you
• Wait

As you've found out, you don't approach a solicitor first without knowing what house you want to buy, likewise some estate agents try cut down on window-shoppers/tyre-kickers by requesting proof of funding before they allow you to view.

Neither has anything to do with Mortgage V Cash. Being a cash buyer is almost certainly better as it reduces the time and uncertainty of the mortgage process, which most leverage to make lower offers.

Also, just as a heads up - I know you're a FTB but try to be patient. Many loathe (and some avoid) selling to FTB's because they very often have wildly unrealistic expectations of the process and spend every waking moment chasing any one and every one for updates. Set your expectations from the start that this will take months, and calling your solicitor every hour of every day for updates on whether they got your searches back does not speed the process up. Some of this forum of course will counter this by saying that's what their paid for, but personally in the grand scheme I think conveyancing costs are very low relative to other legal services.

Not if you seen the recent tv programme some estate agents don't want cash buyers

CapricornLass

If you are having problems with EAs as a cash buyer, maybe it would be worth contacting the Mortgage team of a building society or bank, and discussing the problem with them?  Its not a problem they are likely to deal with everyday, but they may  come up with ideas as to how you can best proceed.

I would strongly recommend that once you have found a property that you like, that you get a survey done by a member of the Royal Institute of Chartered Surveyors.  You need to ask for a level 2, which is a detailed visual inspection, but they will identify things that you won't have seen, or even realise there's a problem.  Be warned, the report will list everything that's wrong, and will make it sound as if you shouldn't really be buying!  However, its a basis for getting more information from the seller.  The surveyor will also let you know if there is a really serious problem.  There is a level 3 check which is more invasive (removing plaster, lifting floorboards and carpets, etc) but this should really only be done for the really serious problem, and will be hideously expensive.  Not, however, as expensive as buying a house, which is why you do it.  However, I would probably back out of the purchase rather than go for a type 3 survey.

Incidentally when you make your offer, make sure that the EA is aware that it is being made subject to a satisfactory survey.

As Exodi said, buying a house is a long process.  My son is in the process of buying his first house, and he's been told that the minimum time its likely take is 12 weeks.   

Smalltownhypocrite

35har1old said:

Exodi said:

I think you just misunderstood how the process typically works:

• You find some properties you like, rightmove is usually most peoples preference.
• You request to view them, where the estate agent may ask for proof of funding (which would either be a mortgage in principle, or for you statements showing the cash balance)
• You view the property, and if it is the house you want, make an offer, it either gets accepted, countered or rejected. You may also get a survey (which is usually recommended)
• If your offer is accepted, you instruct a conveyancer to process the transaction for you
• Wait

As you've found out, you don't approach a solicitor first without knowing what house you want to buy, likewise some estate agents try cut down on window-shoppers/tyre-kickers by requesting proof of funding before they allow you to view.

Neither has anything to do with Mortgage V Cash. Being a cash buyer is almost certainly better as it reduces the time and uncertainty of the mortgage process, which most leverage to make lower offers.

Also, just as a heads up - I know you're a FTB but try to be patient. Many loathe (and some avoid) selling to FTB's because they very often have wildly unrealistic expectations of the process and spend every waking moment chasing any one and every one for updates. Set your expectations from the start that this will take months, and calling your solicitor every hour of every day for updates on whether they got your searches back does not speed the process up. Some of this forum of course will counter this by saying that's what their paid for, but personally in the grand scheme I think conveyancing costs are very low relative to other legal services.

Not if you seen the recent tv programme some estate agents don't want cash buyers

Yes but most agents don't do that, only one out of 6 did it to us (I have mentioned it before, it was the biggest national chain one) the local ones where fine with cash buyers.

Albermarle

CapricornLass said:

If you are having problems with EAs as a cash buyer, maybe it would be worth contacting the Mortgage team of a building society or bank, and discussing the problem with them?  Its not a problem they are likely to deal with everyday, but they may  come up with ideas as to how you can best proceed.

I would strongly recommend that once you have found a property that you like, that you get a survey done by a member of the Royal Institute of Chartered Surveyors.  You need to ask for a level 2, which is a detailed visual inspection, but they will identify things that you won't have seen, or even realise there's a problem.  Be warned, the report will list everything that's wrong, and will make it sound as if you shouldn't really be buying!  However, its a basis for getting more information from the seller.  The surveyor will also let you know if there is a really serious problem.  There is a level 3 check which is more invasive (removing plaster, lifting floorboards and carpets, etc) but this should really only be done for the really serious problem, and will be hideously expensive.  Not, however, as expensive as buying a house, which is why you do it.  However, I would probably back out of the purchase rather than go for a type 3 survey.

Incidentally when you make your offer, make sure that the EA is aware that it is being made subject to a satisfactory survey.

As Exodi said, buying a house is a long process.  My son is in the process of buying his first house, and he's been told that the minimum time its likely take is 12 weeks.   

A Level 3 survey will not include lifting floorboards, removing plaster etc.
It is really only an enhanced Level 2 survey and about a couple of hundred Pounds more expensive.

I think if you wanted a very detailed invasive survey, you would agree some kind of a bespoke survey, and in that case it would be expensive.

twopenny

No harm in asking to view. I used local agents before I'd got my house on the market and there may have been a rumble or two but they did show me properties.

Also if you are looking at any that are empty with no onward chain no harm in going round and having a look. Talk or check on the neighbours. 
I do this, first used to walk the dog, now just walking. For instance one I fancied the neighbour had 4 happy dogs and did DIY out the front. Another the neighbours drive outside the huge front window where they parked their enormous vehicle. And not sociable.