So you have decided to buy a home, to live in or for an investment - but what next?
The steps to buying a property can be maze of legal work, negotiations, dealing with estate agents, surveyors and solicitors, finding a good mortgage deal and worrying about your deal falling through...
On top of actually hunting down the home of your dreams, is enough to make anyone's hair stand on end.
Buying a house is one of the biggest financial decisions that you'll ever make. It can lengthy, complicated and expensive if done wrong, and exciting though buying a property is, it's all too often fraught with stress and worry.
Here's how to make simple, stress free and profitable for you. Here's the buying steps to your next property purchase:
After finding a home you like, which can take anything from a few days to many months, the process from having your offer accepted to completion of the sale takes about 12 weeks.
It is important to have a good understanding of the process as it will help you to avoid some of the most common hazards of buying residential and investment property.
Step1: Arranging your mortgage
Before you begin your property search, it is advisable to arrange your finances and, if required, have a mortgage 'agreed in principle.' known as AIP or DIP (Decision in Principle).
This will confirm how much money you will have to fund the purchase , which will ultimately influence yourproperty search. If you need a good broker, we have a few who are part of the Progressive Property Community, so let us know
Step 2: Register your interest
To find the right property, it is vital you register your interest with the estate agent face-to-face, where you can build up your relationship and discuss your property requirements with one of the 'negotiators.'
Step 3: Finding the right property
Once the agent has a clear understanding of your requirements they will select a list of properties which match your criteria & where you will also have a chance to view them. If you are wondering how to become a property investor and find those 30% BMV properties then contact one of our team
Step 4: Viewings
In order to secure the property, it is vital you view it at the earliest opportunity. If the property is not for you, be upfront and explain to the agent why, and book some more viewings.
The viewings will be a great time for you to ask any questions and the agent will be at hand to assist you ‘off the record’
Step 5: Instructing a solicitor
The successful purchase of a property can be reliant on the instruction of an efficient and experienced solicitor.
It is a good idea to use a solicitor who knows the area that you're moving to and specialises in conveyancing.
Step 6: Making an offer
Once you have identified a suitable property the agent will put your offer forward to the seller both verbally and in writing, stating any special conditions of the offer.
You may need to demonstrate, if requested, that you are able to proceed (e.g. provide evidence of your mortgage agreed in principle).
Remember: there are no legal obligations on either side until contracts are signed.
Step 7: Offer agreed
Once your offer is accepted the agent will do the following:
- Prepare a memorandum of sale
- Write to all parties to confirm the agreed price
- Ask you to confirm your solicitor's and mortgage broker's details
You will now need to instruct your solicitor to proceed with the conveyancing process and your mortgage broker to proceed with your application.
Step 8: Conveyancing
As part of the conveyancing process your solicitor will do the following:
- Raise any enquiries on receipt of the draft contract from the seller's solicitor
- Request their own local searches
- Agree on a date for exchange of contracts
The agent will assist your solicitor and negotiate throughout the process, keeping you informed every step of the way.
Step 9: Survey and mortgage offer
A survey of the property will be booked by a surveyor on behalf of the mortgage lender to identify any structural problems and advise on the property's value.
After the mortgage valuation report is received, a formal mortgage offer will be sent to you and your solicitor which you will need to sign before it is returned.
There are no legal obligations until contracts are signed.
Step 10: Exchange of contracts
Exchange of contracts occurs when all enquiries have been confirmed and agreed.
Once the contract has been signed by both parties the deposit (usually 10% of the purchase price) will be telegraphically transferred or paid in the form of a banker's draft from your solicitor to the seller's solicitor.
The completion date is then set by mutual agreement.
Step 11: Completion
Completion is when the residual monies (usually 90%) are transferred from your solicitor to the seller's solicitor's account.
The agent will release the keys once the money has cleared in the seller's account.
Congratulations, you are now the legal owner of your new home!