The Buying Process - A Step by Step Guide

After much deliberating you have decided that you are buying a property, but precisely how much can you afford?  On top of the cost of the house itself, there are many other, one-off expenses involved in buying a home and moving which can tot up to between £2,000 - £5,000. In order to get a good idea of what sort of home you can realistically hope to buy, you also need to take these extra costs into account. To help you do your sums, here is a guide to working out how much money you have to spend and what the costs are.

You need to work out:

1. The amount you will get from the sale of any current home
2. The amount you can borrow
3. The amount you have in savings or investments which you can use
4. Once you have done this, work out how much the other one-off costs of buying and moving will add up to
5. Deduct this sum (4) from the total sum of 1, 2 and 3 and you will have a rough estimate of the kind of price range you are looking at

When it comes to finding the best Mortgage, there's no substitute for professionals. A qualified Mortgage Advisor can guide you through the mortgage maze and find the best mortgage deal for your particular circumstances. You can make contact by telephone, email or should you prefer, a face-to-face a meeting can be arranged

Click here for the best mortgage courtesy of Live in Bedford

It was customary that solicitors undertook all conveyancing work but now there are also licensed conveyancers to do the work.

It is illegal for conveyancers who are not licensed to charge a fee for conveyancing work. Always check that that a named conveyancer is licensed.  Here are some useful contacts for the Council of Licensed Conveyancers

It makes little difference whether you choose a solicitor or licensed conveyancer - other considerations are more important.

• Not all estate agents are the same – avoid the marketing tricks and choose the one who will sell your home with our expert guide
• How to find the estate agent who offers the right service for you – at the right price
• The 10 essential questions to ask during an initial visit, and why you should always read the contract

Choosing the right estate agent to sell your home will take time to research and you'll need to ask as many questions as possible when they visit your property.

Typically, people rely on two main criteria when deciding to instruct an estate agent. They'll pick the agent who:

• charges the lowest commission rate; or
• offers the highest valuation.

You should never choose an agent based on either of these marketing tricks! To find the best agents to value your home, you'll need to spend a few weeks researching and monitoring which agents are selling property locally. You can do this by looking in your local newspaper, driving around your area, and talking to friends, family.

Once you've identified the agents who have sold properties similar to yours, call into their offices. Firstly, visit as a buyer interested in properties like your own, so you can talk to the staff and see how happy you would be if they were selling your property. Ask yourself the following questions:

• Are the staff welcoming?
• Can they explain what’s happening to prices in your area and how many buyers there are for each property for sale?
• Can they find property information easily?
• Do they chat among themselves, or have little idea what is for sale where?
• Are they helpful in offering explanations for different prices of similar properties?

There are some estate agents who have no idea how to sell in a slow or falling market. In a slow market, choose only an agent who is selling property similar to yours and ideally was in business during the last falling market in the early 1990s.

Try to find three good agents, as this gives you a good spread of views, then invite them to value your property so you can decide on your favourite one. Before they visit, think about what type of services you want from an agent and have a list of questions ready to ask them. Click here for local estate agents who are members of the National Association of Estate Agents .

Many people forget that agents do a lot of work long before they receive any money from you. However, some agents work much harder than others, and it’s worth thinking through how involved – or not – you'd like to be in the sale of your property.

Standard services

• Free visit and valuation of your home.
• Preparing property marketing details.
• Promoting your property: online (for example, on its own website and other property portals), in a local newspaper and sending your property details to prospective buyers.
• Accompanying buyers on some viewings.
• Providing offers from buyers in writing.
• Negotiating with buyers.

• A preference for accompanied property viewings, which will save you the trouble.
• Adding floor plans or online video tours of your property.
• Committing to advertising your property every week in their local office window and/or local newspaper.
• Property review meetings and online tracking systems, so you can check on viewings and buyer feedback.
• A (free) ‘sales progression’ service, via someone at the agent's office rather than a call centre. This can save you a lot of time as they help to liaise between the buyers, sellers and other parties involved in the purchase/sale.

Some agents offer a scaled-down service that is charged at a ‘fixed price’. This service usually includes producing property details, promoting your property online, and sometimes – but not always – in the local newspaper.

However, you'll have to manage calls from potential buyers and show them the property, follow up to see if they want to view again, or better still make an offer and negotiate the price yourself. The fee is payable upfront whether or not your property sells.

More traditional agents will offer a mix of the services highlighted above and charge accordingly. Charges range from 1% to 2% for ‘sole agency’ – ie, you give one agent responsibility for selling your home, or from 1.5% to 2.5% to sell on a multiple agency basis (more than one agent is appointed to sell your home).

Don’t forget: agents are negotiators – so try to negotiate their fees!

It's important to read the contract the agent gives you. Check that these areas are covered and, if necessary, seek to clarify the relevant clauses:

• What happens if you find a buyer yourself, for example a work colleague, friend or neighbour?
• If you're not happy with the agent's service, how long does the contract tie you in for? Ideally aim for a six to 12-week break clause.
• What happens if you're unhappy with the agent's service and want to complain?

Prices vary, but be wary of the very cheapest services - this might indicate poor quality. It might be worth paying a bit more for a good service. On the other hand, the most expensive is not necessarily the best

•  Look for a solicitor who is not overworked or inexperienced as this could mean important details are missed. Equally, you don't want one who is very slow or too pedantic as this could hold up the process.

• Buying a house is a stressful business, and it is important that you get on with your solicitor. Think about whether you can trust this person.

Overall, be sure to hire a solicitor or conveyancer as soon as possible in your home-buying process, so that they will be ready to step into action as soon as you have had an offer accepted - preferably as soon as you know you are likely to make an offer on a house. The faster things move, the better the chances that all will go smoothly.

One of the best ways to choose is through personal recommendation. If you know someone who was happy with a solicitor/conveyancer's services throughout the process this is a very good indication of their quality.

Otherwise, you can consult the Law Society 's regional directory for solicitors in your area, or look in the Yellow Pages or local newspapers for adverts.

If you have already used a solicitor for other business, you could contact them for recommendations of solicitors in the same firm specialising in conveyancing.

Usually the same solicitor cannot act for both the buyer and seller of a property, but two solicitors of the same firm may do so as long as there is no clash of interests between buyer and seller.

When you have found a home you are happy with, you are almost ready to make an offer. 

Follow the links below for detailed information and tips to guide you through each stage of the negotiating process.

Before making an offer, there are a few things you should check:

• Keep an eye on the local and national housing market. Check that the house is worth the price you are willing to pay. Have a look at Land Registry reports for houses that have sold in the same area and compare asking prices with actual sale prices. The direction asking prices are heading is a good indicator of the local and national market.

•  When making comparisons between houses, bear in mind that its value can be increased by factors such as extensions, loft conversions, fitted kitchens, being in a good location, or being a brand new house. Similarly, the value can decrease, for example, because of extensions that fill the whole garden or being in a bad location.

• Check whether the property is freehold or leasehold

• Agree what fixtures and fittings will be included. Draw up a list of all items with the seller as this will avoid later confusion

• You can also check things like planning permission, whether there are plans for new developments nearby (roads, new houses etc), and covenants, though these should be looked at by your solicitor later on during conveyancing

Before making an offer, there are a few things you should check:

How much should I offer?

Negotiating Tips

Negotiating in a house price slump

Negotiating in a house price boom

The offer

1. Contracts are exchanged. You hand over a deposit which is non-refundable if you pull out of the sale.

Once you and your solicitor are satisfied that everything is in order, the contracts can be exchanged. You sign a copy of the contract which is passed to the seller, and the seller signs a copy of the same contract which you receive. Once contracts have been exchanged (normally by the two solicitors) both parties are legally bound to follow through with the transaction. You can no longer change your mind - if you pull out it is likely that you will lose your deposit, and you could be sued for breach of contract. You also now have no need to worry about gazumping. 
 
At this point you hand over a non-refundable deposit as security to the seller in case the contract is not carried out. This is normally 10% per cent of the purchase price, but it is usually negotiable. If you do not have the money for the deposit at hand immediately, you can arrange for a bridging loan from your bank.

2. Your solicitor draws up a transfer document and sends it to the seller's solicitor

Once contracts have been exchanged your solicitor prepares the draft transfer document (if the land is not registered it will require a special kind of transfer or 'conveyance'). This documents transfers the title of the property from the seller to the buyer. Once both parties have agreed on the draft, it is signed by the buyer and the seller.

3. Your solicitor arranges finalisation and signing of your mortgage documents

Your solicitor will also deal with the finalisation and signing of documentation relating to your mortgage, and will arrange for the money to be available on completion of the sale.

4. Your solicitor carries out final searches and enquiries

Land Registry checks are carried out by your solicitor, to make sure that nothing is registered against the seller (or at the Land Charges Registry if the property is not registered). Problems such as undisclosed mortgages or disputes could be uncovered at this stage.

There will be various matters for you to deal with in the run-up to completion. There will be some documents to be signed and payments to be made: you must pay Land Registry fees and stamp duty. Before completion you need to make sure that all the terms of the contract have been fulfilled, such as any repairs.
 

You also need to be arranging all the practical matters related to moving house.

Make your mind up on a moving date (usually the completion date) as soon as contracts have been exchanged. Try to avoid Fridays and bank holidays when removal firms are in high demand and may be stretched. For a less nerve-racking move, opt for off-peak times such as mid-week. It's more likely your chosen removal firm will be available for that day.

Call in the professionals. Ask friends or relatives who have moved recently to recommend removal firms also look in local newsapers. Failing that, the British Association of Removers or the National Guild of Removers and Storers will be able to supply names of approved members in your area. 

Make certain your possessions are insured for transit. Most removal companies provide such insurance. Check what it covers and whether there are exclusions. Remember that anything you pack yourself may not be covered by the removal firm's insurance. If you are planning to transport any precious items yourself, check that these are covered when in transit by your contents insurance.

If your pocket allows hire professional cleaners to give your new place a thorough going over before you move in. Some removal firms will arrange to do this. This will make the whole move a more comfortable process.

Get someone to look after the children for the day. The same goes for pets - or book them into kennels or a cattery. Make sure they have identity tags with their new address.

Collect all the keys to your home, including those left with neighbours, nannies and relatives, and give them to your solicitor or estate agent.

If the move is going to be spread over a couple of days, arrange accommodation somewhere special, ideally a hotel - you'll be too exhausted to socialise - and pack a bag for an overnight stop.

Make a scale plan of each room in your new home to give to the removal team so, in theory, they know exactly where everything is to go. Colour-code packing boxes, cases and furniture in the hope that this will mean it ends up in the right rooms.

Final preparations should include making a complete inventory of everything to be moved, advising the post office to redirect your post and cancelling the milk and newspapers if you have them delivered. If you are moving to a different area, register with a new GP.

Click here for a printable Live in Bedford’s Home Move Checklist

Resolve to book a removal firm as soon as you exchange contracts and the completion date is set. Get at least three estimates from different firms and don't automatically accept the cheapest; you tend to get what you pay for. When comparing estimates, make sure you are comparing like with like. Are packing materials, boxes, cartons and crates and VAT all included?

A few weeks before the move, the removal firm should send someone to establish what the move will entail. Now is the time to point out anything that needs special care and attention, such as antiques, computers, pictures, etc. Highlight any large or awkward items of furniture, such as a piano - which may require a specialist handler and/or have to be winched in through a window - or sofa.

Tell the removal company if access from your old property or to your new property is likely to be difficult. Parking space for the removal lorry will also need to be considered. Such problems can add to the cost of a move and should be considered in the estimate. Don't accept an estimate over the phone. All quotations should be in writing and include pricing for packing, loading and unloading, storage (if required), special handling for breakables and valuables and any other special requests, such as curtain hanging and cleaning.

When you accept an estimate, insist that a written quotation is sent to you as soon as possible. Establish a written timetable with the removal firm and check the foreman has all the necessary details. Make sure the removal firm has a clear map showing how to find your new home.

Aim to arrive at your new home before the moving truck does, or else you may be invoiced for the thumb-twiddling period.

Once you arrive:

• Do a walk through with your estate agent. Make sure everything is where it's supposed to be.

• Tape names to doors to assist movers; map out floor layouts so movers know what's going where.

• Try to avoid putting boxes in the attic/basement; you'll be less likely to unpack boxes you can't see.
 

You've arrived at your new home! Once your boxes arrive and you start to unpack, it's time to get settled and explore your new community