Preparing to buy for the first time

In today’s buoyant market properties are sometimes under offer in days from the point at which they are marketed. On numerous occasions we find that viewings commence within hours of a board being erected at a property or details being posted on our website or propertynews.com. In such an aggressive market it can be extremely difficult for first time buyers to secure a suitable property to purchase.

In this market, preparation is key for first time buyers. As a result we would advise all first time buyers to take independent mortgage advice prior to starting their search for property. A registered independent mortgage advisor will be able to assess an individual, or couples. Income and advise on an affordable level of purchase. They will also advise on costs and explain the mortgage lending process.

This preparation will give first time buyers an accurate indication of what they can afford and how they will finance their purchase allowing for more informed and confident decisions when choosing a house to buy or deciding how high to bid.

Preparing to buy when you have a house to sell

Preparation is also the vital first step for those who want to buy and who have a house to sell. We would advise sellers to arrange a free valuation of their property to ascertain the market value of their home. Values are now changing so quickly that an up to date property valuation is essential. Once this has been carried out the next step is to contact your Independent Mortgage Advisor who will advise you on the merits and costs associated with selling and buying a new home. It is also advisable at this stage to contact your solicitor and inform them of your intentions and obtain a quote detailing the approxomate solicitors fees involved in sale and purchase. Taking these three steps first will allow accurate budgeting and avoid disappointment down the line.

Finding your new home

Once you have decided that you are in the market to buy a property you will need to find a home that suits your needs. We advise all buyers to carefully assess their wants and needs at the very start of the process. Often finding the right home involves a level of compromise so all buyers should have clear in their minds the essential factors they are looking for in a home allowing them to narrow their search.

In today’s market there are a number of different mediums for finding a property. The internet is fast becoming the quickest and most popular way to view property particulars and the big benefit is that you can an overview of what is available from the comfort of your own home. Our website is updated with ‘Latest Listings’ as soon as we are instructed to sell a property, before a brochure has even been produced. We also encourage prospective purchasers to book viewings through our website 24/7 to allow you to get out to your ideal property as quickly as possible.
It is our experience that you never get the real feel for a property without going through it and often a viewing helps clients make their decision, positive or negative.

What happens next

All offers on properties are reported to our sellers by telephone and confirmed in writing the day that they are made. If a higher offer is received we will contact you and inform you of the higher amount giving you the opportunity to increase your offer. It is then the decision of the owner of the property which offer they choose. We will provide sellers with all information pertaining to each offer on their property to allow them to make an informed decision. All details of offers are recorded and kept in possession of Gillian Campbell Estates to comply with current legislation.

Once your offer is accepted

If your offer is accepted by the seller we will produce a Notification of Proposed Sale or NOPS. This is a piece of paperwork with details of the seller and their solicitor, buyer and their solicitor and details of the offer. This will be sent to buyer, seller and associated solicitors. A NOPS does not constitute a contract and is purely to inform all the parties involved.

The conveyancing process

Once a NOPS has been received by the associated parties solicitors will start the conveyancing process. This usually takes between 6 and 8 weeks during which time the solicitors involved carry out property searches, check title deeds, and produce a contract of sale.

During this period buyers will make a formal mortgage application if required. A valuer for the lender, or an independent surveyor will visit the property and in due course the purchaser will receive a mortgage offer.

This contract will pass between solicitors and once solicitors for both parties are agreed that terms are satisfactory and completion dates have been firmly agreed the buyer will sign the contract and pay a deposit to their solicitor. The contract will then be forwarded to the solicitor of the seller who, if satisfied, will then sign and accept deposit making the contract legally binding.

Completing the purchase of your new home

On the agreed completion date the balance of purchase monies will be requested from the sellers solicitor. This will be transferred by the buyers solicitor – usually in the morning – to the sellers solicitor and once confirmation has been received that the monies have been transferred keys will be released by the agent, generally in the afternoon, and you can enjoy your new home.

Costs for buyers to be aware of

Solicitors Fees:
These will include land registry fees
Search Fees
Solicitors Professional Fees
Stamp Duty Fee

Stamp duty explained

Stamp duty is a tax payable by the purchaser of a home and is calculated based upon the full purchase price. The tax is based on any purchase over £125,000 and is collected by your solicitor when the purchase completes and then payed to the Stamp Office. There is no stamp duty on homes below £125,000. The scale of stamp duty is as follows:

£125,001 plus and up to £250,000 = 1% of the total purchase price
£250,001 plus and up to £500,000 = 3% of the total purchase price
£500,001 plus with no upper limit = 4% of the total purchase price

Certain areas are exempt from Stamp Duty on property valued up to £150,000. For more detail visit:
www.direct.gov.uk

Recent changes in legislation mean that other items included in the purchase price ie: carpets, curtains etc must be included in the total figure and are subject to stamp duty. As above for more details visit:
www.direct.gov.uk

Stamp duty is not payable on a sale by the owner.