Buying a house can be a very complicated process, with a lot of things that you should think about. There are some important areas, however, where you should not be tempted to try and cut corner. If you are thinking of buying a home, you would be best to remember the six points listed below.
1. Making an offer on another property when I have not received an offer on mine.
There is no reason not to make an offer, although you will be viewed more seriously if you already have someone lined up to buy your property who is in a position to proceed with the purchase straight away.
2. Everything I see in the house will still be there when I move in.
Think about whether you would like to retain any fixtures and fittings currently at the property when making an offer. As part of the negotiation process you may wish to make an offer based on certain items (eg carpets and curtains) being included in the price.
3. I do not need a survey
The purchase of a property is probably the largest financial transaction of your life and it is important that proper professional advice is obtained from a surveyor regarding the condition of the property. Many people make two common errors when it comes to surveys. Firstly, if they do not need a mortgage they assume that a survey is not needed. Secondly, if a mortgage is needed they opt for the cheapest option, which is the basic valuation survey. The basic valuation survey is just for the mortgage lender's requirements and usually does not have any details at all about the state of the property. Therefore, it is important that you at least have the Homebuyers Report. This is a survey commissioned directly by you with the surveyor which means there is a contractual relationship and the surveyor is under an obligation to provide advice regarding the condition of the property. The advice given is backed by professional indemnity insurance which means that you are covered in case any problems are overlooked. Your conveyancing solicitor will be able to recommend an experienced surveyor to carry out a survey.
4. I can reduce the Stamp Duty by splitting the purchase price between the house itself and fixtures and fittings
It is common that the price you offer for a property reflects the value of the house plus any additional fixtures and fittings. You can agree a reasonable additional figure for fittings such as carpets and curtains which is not chargeable to Stamp Duty Land Tax. However, such a figure must reflect a reasonable valuation of these items otherwise the Inland Revenue will challenge the transaction.
5. I do not need to pay a deposit on exchange
Normally, if you are selling one property and buying another the deposit which is received from your sale can be used as the deposit on your new property. This means that you should not need to pay any additional money on exchange of contracts. Furthermore, while the contract may state that a 10% deposit needs to be paid it is not unusual for a lesser deposit to be accepted
6. Forgetting to let the service providers know.g. gas, electricity etc
Before moving into a property, it is important to find out who the service providers are. You should also ensure that all service meters are read on the date the seller moves out of the property. This will make sure that future bills are correct, thus avoiding any arguments.
Ensure you never rely on assumptions when buying your home - it is after all probably the most expensive transaction in your life. The first step to a simple, stress-free home purchase is finding a local, experienced residential conveyancing solicitor, listening to their advice and asking them questions if you are not sure where things are at.
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