Buying FAQs
How to choose your next home and when.
Q. I am not sure if I can get a mortgage? What should I do?
A. The criteria for eligibility for mortgages change continually. You will need a deposit which will be at least 5% of the total cost of the property you are going to buy. The larger the deposit you have to put down, the less you have to borrow and so borrowing becomes cheaper. The initial step may be to visit your own bank although each bank can only discuss its own products. Our advice is to seek out the advice of an independent financial advisor (IFA). For a rough idea of the monthly payments, visit this website calculator. Having a mortgage in principle make you a strong buying prospect.
Once you have determined that you are eligible for a mortgage and, from that what your budget is, then you are able to begin the search.
Q. How do I know what to look for and which house is suitable?
A. It may seem obvious but most people make a wish list in their head and begin the search without writing in down. You should decide on the location, size, attributes and a host of other things that are important to you. Then find all the houses that meet your requirements within your budget. View all the properties that may be suitable, then narrow them down to a short list and go for a second viewing at each.
Q. If I find a home that is suitable, how do I know it is correctly priced?
A. Us estate agents are tricky characters, always trying to obtain the highest price for our clients. Fortunately, the Home Report comes with a valuation by a surveyor which should help guide the buyer. If your budget is, say, £100k and the house you like the look of is priced at £100k then the Home Report is a guide to what work is required in the property. A very good HR would indicate that little work is required and that offering close to the valuation should mean you will require little expenditure once purchased. However a HR with a lot of work required at the same price normally indicates that the house would be more expensive if all the work was already done. You may have to adjust your budget accordingly. We have a whole FAQ section entirely dedicated to Home reports. Prices for previous property sales are readily available, so do the research.
Q. I have found the home I want, what do I do next?
A. Make an offer! This is as easy as making a verbal offer to the Agent who must take it to the seller. Some people prefer to have their solicitor make a formal offer. Either way, you should consider the first offer as the opening offer. Agents will always try to get more for their clients. Whether or not it is accepted will depend on the seller, the amount offered, entry date and how strong a position you are in.
Q. How much should I offer?
A. This depends on a number of factors.
- Your Budget. Do not over extend yourself. There are other costs associated with moving house that need factoring in, removals, changing utility, phone and broadband providers etc. Check the monthly payments are affordable for what you wish to pay. You do not want to have the perfect house but be unable to eat or enjoy it.
- Your Budget. When you move into a property, you may have some jobs to do. Most people decorate to their own taste anyway. There may be some items which need upgrading and have been noted on the home report. Replacing kitchens and bathrooms may be on the wish list, but if the existing ones are ok, then it may not be appropriate to discount for them.
- Your Budget. The condition of the property will be indicated by the Home Report. The mortgage value on the home report will give you a guide but you should note that you will have to bid close to this figure or above if there is a lot of interest in the property or it’s the one for you and you definitely have to have it. (See also Home Report valuations)
- Your Budget. The art of negotiating demands that you begin below the price you are prepared to pay. The seller will of course expect this. Some sellers are offended by a cheeky offer but they can be useful in getting information about what they will be prepared to accept.
Q. Once an offer is accepted, is that a binding contract?
A. In Scotland, once an offer has been accepted and the lawyers begin the process of conveyancing, it is deemed that the Home is “Under Offer”. That means that the agent will not show the home to other interested parties or accept any other offers. However, if the process does not go to conclusion or if the agreement breaks down because some conditions are not met, then the property can return to the market. Only when the Missives have been exchanged is everybody committed beyond doubt. Proceeding to missives may take only a few short weeks or may be protracted depending on the complicity of the paperwork and availability of funding.
Q. What has happened to Stamp Duty is it abolished?
A. Unfortunately not, however the tax burden for most buyers in Scotland has been reduced significantly. The duty is payable on homes with a selling price of over £145k and is not as oppressive as the previous system which was 1% of the whole amount over £125k. Here is a table of what you have to pay. Click here !!!!!*
Q. If we agree the sale, how long does it take for before I can move in?
A. The answer depends on a number of factors.
- The situation of both buyer and seller: are they dependant on another property being available/sold? Those dates become a consideration. A chain of two or more properties can be in place or the seller may have a date for moving already(Emigrating, perhaps or a Job offer)
- The provider of the funds. If the buyer is requiring a mortgage then the process will normally take 6 weeks to ensure the funds are in place at the intended time. Some solicitors may ask for 8 weeks as an extra caution. The date can be moved forward or back if both parties are in agreement.
- The solicitors. Conveyancing takes time and there are many checks and reports to be obtained. For a purely cash buy, the process can be as low as two weeks but plan for four. The solicitors can do it quicker but everything needs to be straight forward and simple which it rarely is.
- How quick can you pack!
Q. I’ve bought my new house, where do I get the keys?
A. When the solicitor acting for the seller is satisfied that all funds are in place they will normally release the keys. They are likely to have been left at the lawyer’s office, the estate agents or be collected from the sellers themselves at the property. Always check a few days beforehand.
Key releases are usually around lunchtime, although not all moving days run so smoothly. Best get a good removal company who won’t charge you a fortune if there is a delay. See, “when should I talk to the movers?”
Q. What happens if there’s something wrong with the house I buy?
A. A lot of people don’t realise that they have five working days to report material faults with their new home. In particular, the hot water and central heating and anything which is faulty and will cost over £300 to repair that was not mentioned beforehand or indicated as defective. ie Most white goods are sold as seen if part of the sale and a repair would not qualify. You must contact your solicitor within the five days to ensure that you can be compensated, or the fault rectified at the seller’s expense.