Buying and Selling Your Home
Buying or selling your home can be a stressful time, but it needn’t be. Follow our step by step guide to put your mind at rest.
|
| |
|
 |
 |
 |
|
|
|
|
|
Buying a Home
Buying a home for the first time may seem a daunting task,
but it is not.
Here's our basic guide to buying your new home:-
Work Out what you can afford
Viewing Guide
Making on offer
Arranging Your Mortgage
Valuations and Surveys
The Legal Process
Exchange of Contracts
Completion
Moving Day!
1. Work out what you can afford
Knowing what you can afford is essential before you start looking at properties. Why not have a play with our mortgage calculators if you don't know how much you can afford, and how much it will cost you.
1. Viewing guide
Selecting a home is one of the most important decisions you will ever make. Take your time. Once you think you've find somewhere you like don't be afraid to ask to visit several times to make up your mind, and try to visit at different times of the day before making a decision.
What to look out for when viewing
* Surroundings: Are the neighbouring properties in poor repair? If they are, they could hold down the value of your potential new home.
* Transport: Is the traffic heavy? Is there adequate car parking?
* Repair Status:
- Check the roof, are there slates missing?
- Find out how old the plumbing, electrical wiring, and central heating are? Are there plenty of power points? If not, why not?
- Patches of fresh plaster, wallpaper, or paint may indicate that the current occupier has something to hide.
- If the heating is turned full-up, and the weather is not particularly cold, the current occupier may be trying to counter problems with damp
- Look for major cracks in the brickwork. These could betray serious structural problems.
- Check window frames, do they need repairs?
* You don't need to like the décor, but how much redecoration would be needed?
- Are there stains on the walls which could be evidence of leaking drainpipes and guttering? These signs should tell you 'Treat with extreme caution'.
- The aroma of freshly brewing coffee or baking bread may mean that the current occupier is very domesticated. Or it may mean they are trying to hide the musty smell of damp or poor drainage.
|
  |
|
Motto: Keep your wits about you at all times. You are spending too much money to make any major mistakes.
What to find out from the seller
* Why does the seller want to move house?
* How long the property has been for sale
* If there any other buyers?
* Whether the structure of the property has been altered in any way?
* Has the property been surveyed recently?
* What the neighbours are like?
* How quickly they want to move?
2. Making an Offer
Once you have found your dream property, it is time to put in an offer.
* Contact the estate agent and tell them what you are prepared to pay. If the offer is not accepted, they will help you negotiate a price. Remember that the price you offer does not have to be the selling price.
* If your offer price is accepted, it is made 'subject to contract' which means you can still pull out, say if the survey reveals problems. The seller also has the right to remove their property from the market.
* When you have made your offer, arrange a mortgage online with first-e and we'll set up an independent valuation and a survey to check that the property is worth lending money on.
3. Arranging Your Mortgage
Once your offer has been accepted, you'll want to apply for your mortgage straightaway. With first-e we can approve your mortgage and arrange the valuation and necessary legal work on the same day. Our Mortgage Application only takes down the information we need to arrange the mortgage, and only takes 30 minutes to fill in!
4. Valuations and Surveys
Once you have chosen a new home, we at First-e will need to carry out a valuation of the property to ensure that its value covers the loan.
The valuation report is not an in-depth survey and, as it is for First-e use only, you will need to get a more detailed report to ensure that the property is structurally sound.
If you choose your own surveyor to carry out the more detailed report, make sure that they belong to the Royal Institution of Chartered Surveyors (RICS), or the Incorporated Society of Valuers and Auctioneers (ISVA).
For most people, a House or Flat Buyers' Report is adequate. This falls between a valuation and a Full Structural Survey, and will list any defects requiring attention. On a property costing under £100,000, you can expect to pay around £250.
For most older properties built before 1900, a Full Structural Survey is recommended. This is a very thorough investigation, giving a complete description of the property's structure, a list of all major and minor defects and a guide to the cost of any essential repairs needed. Costs will depend on the property's age and size, but you can expect to pay around £500 on a property costing under £100,000.
If you have a survey, and mistakes are spotted after you have bought, you are legally entitled to sue. There is greater redress if a Full Structural Survey has been carried out.
If your survey reveals problems with the property, you can either withdraw your offer and start to look elsewhere or, if the problems can be fixed for a certain cost, you can use the survey results to ask for a reduction in the price to cover the necessary work.
Once First-e is satisfied with the outcome of the valuation, we will send your solicitor the formal mortgage offer documents.
5. The Legal Process
First-e's approved panel solicitor of solicitors, or your own if you have one will look after the selling process and make sure that you, the buyer, get the house you paid for and that the vendor gets the money. To do this the solicitor charges 0.5% to 1.5% of the house's price and does the following:
* Checks that the vendor actually owns the property by looking at the title deeds.
* Protects you against the vendor not disclosing all relevant information about the property by asking the vendor's solicitor a series of questions.
* Checks any new roads or buildings planned in the area will not be so close as to devalue the house.
* Writes the contract between you and the vendor.
* Pays the deposit to the vendor's solicitor.
The Exchange of Contracts followed by Completion are also part of the legal process.
6. Exchange of Contracts
As soon as your solicitor has confirmed everything is in order, and the valuation is acceptable, they will arrange with you to sign the contract, which is then exchanged with the seller, who signs an identical one. You are now committed to the purchase and may have to pay a deposit of up to 10 per cent, which is non-returnable if you pull out.
At the exchange of contracts it becomes your responsibility to insure the property, so you must arrange buildings insurance cover.
Once contracts are exchanged, the countdown to completion and the day of your move begins.
7. Completion
Completion is the day when you become the full owner of the property. On this day your solicitor pays the outstanding cost of the property and receives the title deeds in return.
The deeds are then passed on to your mortgage lender as security. The solicitor also advises the Land Registry of the change of ownership and stamps the ownership transfer.
8. Moving Day!
As soon as you have your completion date, you can organise your move. You need to decide whether you will move yourself, or hire a removal firm to do the donkey work.
* You will be surprised how much furniture and other items you have accumulated, and moving them yourself can be extremely hard work. Breakages are also very frustrating.
* If you decide to hire professionals, it is advisable to book your van at least three weeks before you move.
* Use a removal company that belongs to the British Association of Removers (tel. 0181-861 3331). Check that they have proper insurance to cover breakages.
* Get several quotes before you decide, as estimates vary from firm to firm.
* Firms will want details such as what floor a flat is on, whether there is a lift, if you have any large furniture, and where (if anywhere!) they can park.
Countdown to Move: One Month
As soon as you get a completion date from your solicitor, you can start planning the move and it really does help if you've done some thinking ahead.
This checklist will help you work through all the people who need to know that you're moving:
People to inform Tick when done
* Landlord (if renting)
* Bank
* Building Society
* Insurance companies
* Store cards
* Hire purchase companies
* Family
* Friends
* Employer
* Trade union/professional bodies
* Inland Revenue
* Council Tax Office
* Gas
* Electricity
* Water
* Phone
* Mobile phone
* Cable/satellite TV
* TV or video rental
* Doctor
* Dentist
* Optician
* Schools
* DVLC
* Subscriptions
* Club memberships
* Arrange for your post to be re-directed to your new address to cover anything you might have missed!.
Four weeks before Tick when done
* Start collecting boxes and packing cases.
* Check your home contents insurance to make sure it covers your move.
One week before Tick when done
* Confirm the date and time of your move with the removal company.
* Settle your paper and milk delivery bills.
* If you've got pets, arrange for someone to take care of them on the day of the move.
* Defrost the fridge and turn the freezer to maximum.
* Send out your change of address cards.
* Start packing - it could well take a week!
* Drain petrol from lawnmower and other appliances.
One day before... Tick when done
* Finish packing everything except the essentials (like your toothbrush).
* Make sure you've got your cheque book, credit cards and cash handy.
* Put your valuables and documents in a safe place and if possible remove them yourself.
The day of the move Tick when done
* Put down protective sheeting in the hall the day before the move, to ensure the carpets aren't damaged.
* It's a great idea to set aside a survival kit including tea and coffee-making equipment, a screwdriver and cleaning materials. And don't forget that essential house-warming bottle of fizz.
* Check all rooms to make sure nothing has been left behind.
* Collect the keys for your new home - and start unpacking!
Page 3 of 1
Mortgage Web Content Requirements
F:\Credit Products\Mortgages\Web Content\Buying Guide v1.doc
|
|
Selling Your Home
Selling your house may take some time, but it is easy. There are essentially two steps involved in selling your house:-
1. Valuing your home
2. Finding an agent
3. Viewing Your Home
4. What to include in the sale
5. Speeding Up Delays
1. Valuing your home
As valuations are usually free, get a few valuation from more than one agent
Compare the valuations they give with other similar properties in your area that are for sale.
If an agent puts too low a value on your property it will sell quickly but you could lose out on quite a lot of money.
Too high a valuation means that your property may not sell at all, or may not sell in time for you to buy the new home you want.
2. Finding an agent
Choose your estate agency carefully. Go to a firm you know and trust, act on recommendations, or look for members of professional organisations such as the National Association of Estate Agents (NSEA) or Incorporated Society of Valuers and Auctioneers (ISVA), and that they follow the estate agents' ‘Code of Practice’.
How much publicity will they give your property? Will it be on the internet, their window, their mailing list, local papers, and advertised through associated agents?
Find out what they charge and precisely what is covered by their fee. Usually you will have to pay a commission once your property is sold, which is likely to be between 1.5 and 3 per cent of the sale price.
Do not automatically put your trust in the firm that puts the greatest value on your home, or asks for the lowest commission. Go for the one that makes the best overall impression.
Do remember there are other costs involved in buying and selling a house. You can get an idea of these costs on our Buying and Selling Costs Calculator.
You can, of course, do-it-yourself but it is a lot of work to do yourself, but bear in mind:-
Advertising in the local press can be expensive.
Bear in mind that some people are wary of deals that do not involve estate agents, as they feel there may be a catch involved - even if there isn't!
|
|
|
3. Viewing Your Home
You obviously want your home to look its best when showing it to prospective buyers, so ensure that it looks as good as possible.
Do not do any heavy painting immediately before you show people around, as the smell will arouse suspicions.
Place fresh flowers and plants around the house and tidy up the garden, as it can be one of your best sales aids. If you do not have a garden, get a window box or a hanging basket.
Offer your viewers tea or coffee, give them the guided tour, then leave them to look around on their own.
Give them details of running costs, and have bills to hand to show them. This reinforces the fact that you are being totally open and honest about the property.
If you have children, keep them under control, they can be very off-putting.
During the summer, open the windows to keep the air fresh and the property as cool as possible. In winter keep it warm and cosy.
4. What to include in the sale
Problems can arise over exactly what is being sold with the property, so it is important to work out the fixtures and fittings to include in the price. As a rough guide, the rule is what is fixed stays, although this still has grey areas. To deal with these, the Law Society in England and Wales has issued a Fixtures, Fittings and Contents form, used as part of its TransAction scheme.
This five-page comprehensive document lists what items are to be included in the sale, and what will be taken away, right down to the toilet roll holders. Before you exchange contracts, you tick each section of the form, making clear whether or not you intend to include items such as wall heaters, dimmer switches and door knockers in the sale. There is a separate section on gardens, which lists items such as ornaments, plants and even sundials, and whether or not they are part of the sale.
5. Speeding up delays
Frustrating delays can occur when you sell your home. Write a letter of instruction to your solicitor, saying that you would like particular attention paid to:
Insurance on exchange.
Planning matters not covered by the Local Authority's search.
Fixtures and fittings, rights of way, precise boundaries of the property and ownership of party walls.
None of these are matters outside the normal scope of solicitors' work, so there shouldn't be any extra cost. If the timetable isn't followed, you can demand to know why not.
If the Local Authority searches, to ensure that the council is not any major surprises on your doorstep, are taking a long time, you can call the Local Authority Land Charges Department to hurry them along. There may be a 'fast lane' for searches and, if you insist, they will be marked 'Urgent'.
They will want to know the date the search was entered, and by whom (your solicitors). They will estimate a date when it will be ready.
If all else fails, conduct a personal search or get a search agent to go through the records for you. However, this may incur an additional charge. Please note a personal search is only available in England and Wales and check that your lender will accept it.
In England and Wales it may be advisable to look around for a solicitor who operates under TransAction. This was introduced by the Law Society of England and Wales to make the process of moving home more efficient and understandable.
|
|
|
|
|
