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Tips for Making the Best Offer for a Property

Finding the perfect home is only the beginning of the house buying process. You have to compete with other buyers. And you have to be sure that you make the best offer for the property — without paying over the odds.

This process is often fraught with confusion, stress, and the unknown. After all, how do you know your offer is good enough without being excessive?

We know a thing or two about buying houses fast. We’ve put together a few tips for making the best offer for a property.

Speak with the estate agent

The estate agent isn’t just there to show you around the property. They’re there to answer any questions you might have. And you should have lots of questions. Before you view a house, compile a list of pertinent questions.

  • Why are the owners selling?
  • Are there any issues with neighbours?
  • How is the local property market performing?
  • Has the property undergone major repairs recently?
  • Has there been much interest in the property?

Don’t be afraid to make a few notes at the time. The more information you can gather at this stage, the more accurate your own valuation will be.

So, you’ve found the perfect home — the property of your dreams. But don’t go rushing in with an offer. And certainly don’t offer the asking price just because you want the property so badly. Remember: most agents and homeowners will add a little to the asking price to create a little wiggle room for negotiations.

Making the best offer for a house

Ask yourself a few questions before you submit your offer:

  • How long has the house been up for sale?
  • What were the sale prices for similar homes in the area over the last two years?
  • Will you get the finance to cover the price you’re offering?
  • Can you comfortably afford the repayments?
  • Does the owner appear in a hurry to sell? And if so, why?
  • Is there a lot of competition for the property?
  • Do you think the owners would accept less than the asking price?

Making your offer

Start by setting a price ceiling. Work out the maximum you can afford, and stick to it. If you’re confident that the vendors are in a rush to sell, and that there isn’t a lot of interest in the property, offer around £10,000 to £15,000 less than the initial asking price. In most cases, such a low offer will be rejected almost immediately. But you never know. And this initial offer might give you an idea of an offer the owner might find acceptable.

If there’s a lot of competition for the property, you can’t afford to take too many risks. If your initial offer is rejected, ask the estate agent what might be accepted. If it’s beyond your budget, move on. But first, think about how the owners might view you. You might be in a position to move quickly, and that could give you the edge.

Making the best offer for a home

Issues that can tip the balance in your favour include:

  • You’re a first-time buyer
  • You already have a mortgage offer
  • You’re passionate about the property
  • You’re flexible about moving dates
  • You’re a cash buyer

My bid was accepted. What next?

Don’t get too carried away if your bid is accepted. This is just the beginning of the house purchase process. Ask the agent to take the property off the market. But be aware that there’s no legal requirement to do so. To ensure you get the home of your dreams, you need to act quickly.

The seller’s agent will create a document stating the property is sold “subject to survey and contract.” You’ll have a limited amount of time to get your mortgage, house sale (if applicable) and legal arrangements in order.

And don’t forget: in England and Wales, the seller can accept a higher offer without legal impediment. So-called gazumping is still an issue. Plan for this eventuality just in case the worst happens.

Knowing how and when to place a bid is crucial. But if you’re worried that a delay in the sale of your own home might delay things, remember that Flying Homes might be able to purchase it quickly and without any hassle.

Securing Mortgage Finance for Buying a House

Buying a House? Find Out How Best to Secure Mortgage Finance

The vast majority of people buying a house will be forced to rely on a loan secured on the property they are purchasing – a mortgage. According to Rightmove, the best deals are available to those who have a deposit of at least 15 percent of the total sale price, and the availability of mortgages that require deposits of less than that has been severely curtailed since the economic crash of 2008. However, with knowledge of the finance market, some expert financial advice from finance experts and estate agents and some careful research, you can secure a mortgage that is competitive and suitable for your financial situation. See how securing mortgage finance fits into the overall process of buying a house in our handy guide.

The Different Types of Mortgage For Buying a House

The economic turmoil of recent years has made choosing the right type of mortgage a very difficult task. In some cases, seemingly eligible mortgage applicants have been refused a home loan altogether – forcing them to find property to rent instead.

With interest rates at record lows, people on variable rates have enjoyed several years of incredibly low monthly mortgage repayments. However, those rates aren’t going to last forever, so choosing the best deal for buying a house, for both your current and future financial circumstances requires a thorough understanding of what is available.

  • Tracker mortgages are directly linked to the base rate set by the Bank of England. They rise and fall in line with base rate changes – usually at a differential of a few percentage points above the current rate

  • Standard variable rate (SVR) mortgages are also directly linked to the base rate, but their terms can differ depending on the lender

  • Discount rate mortgages are linked to SVRs, so they are far more changeable than tracker mortgages

  • Fixed rate mortgages provide certainty for buyers, as they fix the interest rate payable for a predetermined period, which can be up to 10 years. While this could be advantageous when interest rates are rising, being on a fixed rate mortgage when rates are at historic lows (as they are now) means you could end up paying a higher rate than that set by the bank of England.

According to thisismoney.co.uk, the majority of first-time buyers prefer the certainty and safety of fixed rate mortgages. However, depending on the outlook for the economy, they suggest that tracker mortgages could provide the best value – given the right circumstances.

Choosing the Mortgage That Suits Your Circumstances

There are thousands of mortgage options in the UK at any given time, and choosing one that is best for your circumstances can be a minefield. A good way to assess the current market – and what the future holds – involves enlisting the expert help of a mortgage broker. You will get advice on what products best suit your financial circumstances and the wider state of the economy.

The Money Advice Service can help you to extrapolate the mountains of information that accompany the house buying process, but choosing the best finance option is usually based on three major factors.

  1. Make sure you have several like-for-like quotes to compare, and assess them in terms of flexibility, charges and how monthly payments might fluctuate.

  2. Check the term of each product. While the average term is 25 years, there are often options for far longer or shorter loan terms. Which term you decide on will depend on the monthly repayments you can afford and exactly when you want to take full ownership of your new home.

  3. Most high street mortgages will offer discounts or special offers for the first few years of a loan, so you should be aware of when any offers expire and exactly what takes their place.

How Much Can You Borrow?

Before you start out on your mission to find property for sale, you should have a clear idea of what you can afford. In order to ascertain how much a lender is likely to loan you, you should first determine how big your deposit is. If you have a large deposit, you will likely receive a substantial mortgage offer. And if you have at least 25 percent of the asking price in cash, you will be able to take advantage of the best mortgage rates on the market.

The way mortgage providers make decisions on how much people can borrow has changed substantially in recent years. In general terms, decisions are made on an applicant’s ability to keep up with the repayments, rather than the old system of lending three or four times an annual salary. Thisismoney.co.uk has a simple affordability calculator which will give you a very crude idea of how much you can expect to borrow, as does the bbc loan calculator.

Getting approved for a mortgage

Before you start to trawl the houses for sale in your area, it will put you in a very strong negotiating position if you have already secured a mortgage promise. In some cases, making offers in such a position can have a favourable impact on house prices – at least for you as the buyer.

As well as submitting proof of your employment and income, you will be required to submit to a credit check. To what extent it is used, will depend on the lender in question.  If you have fulfilled all the criteria for a ‘mortgage in principle’, you will be provided with a ‘key facts illustration’ that demonstrates your buying power to people who are selling houses.

Armed with a mortgage promise, you can start to search for the home of your dreams. However, if you are selling at the same time as buying a house, you might be dependent on that before you can buy. If you want to know ‘who’ll buy your home for the most money and in a time-frame that you need’ then try Flying Homes’ unique home buying service. We buy any house at the best price and in a fraction of the time it takes to sell on the open market – leaving you to get on with the important business of starting anew. Call us now on 0800 68 99 420 for a free instant online quote.

 

Buying A House Guide – The Different Stages of Buying Your New Home

A Guide to the Different Stages of Buying A House

There is no doubt that buying a house, especially for the first time, is one of life’s most joyous and momentous occasions. However, without the right support, advice and planning, it can become a very stressful time in a person’s life. As well as representing a huge financial commitment, it usually involves a lengthy legal process that has the potential to delay or derail the purchase. There are six main stages of the house buying process, and being aware of them will allow you to prepare for one of the most important occasions of your life.

Setting a Realistic Home Buying Budget

You should set a realistic budget when you buy a house, certainly for the first time. In most cases, buying a new home involves committing to a 25-year mortgage. That is likely to be half of your working life, so some detailed financial planning is essential before making such a huge commitment. While you may have the money to cover the mortgage repayments now, who knows what might happen in the future. By weighing up all your financial commitments – and what the future might hold – you can ensure that you don’t stretch your finances too thinly. There are tens of thousands of houses for sale in the UK at any one time, so finding one that is within your means is well worth the effort.

Securing Finance for Your Home Purchase

A mortgage is easily the most common route to buying a house in the UK, but finding one without a huge deposit has been very difficult in recent years. Fortunately, it seems that things are improving for home buyers, but there is still a little suspicion amongst vendors and estate agents when it comes to receiving offers, so find out how much you can borrow and secure a mortgage before making any offers.

If at all possible, putting down a 15 percent deposit will generally get you the best deal on your mortgage. There are 95 percent mortgages available with some mainstream lenders, but the added risk is reflected in higher interest rates. If you have your deposit and mortgage offer in place, you will be in a very strong negotiating position.

Locating the Home of Your Dreams

While it is important to find property for sale that you can comfortably afford, you should still be prepared to shop around for the home of your dreams. It is always a good idea to sit down with family in order to compile a list of must-haves before commencing your search. How many bedrooms do you need? Is a large garden a necessity? Do you require off-street parking? Choose the areas that you want to live in, locate a local estate agent and commence your search with an open mind. Instead of settling for something you’re not completely happy with, however, you could find a property to rent until you find a home that meets your requirements. A great resource for browsing thousands of properties in your area is Rightmove.

Getting the Most Out of Your Property Viewings

A property viewing is your chance to make certain that a home meets all your requirements. Ask for as much information as possible about the property in advance from the vendor or agent, and draw up a mental action plan – detailing what areas of the property require close inspection. And remember to take a camera with you, as photographs will help you to compare different properties when it is time to make a decision.

Tackling the Legal Aspects of a Property Purchase

Negotiating on house prices can be a very tricky process, and the help and expertise of an estate agent could be very valuable at this stage. Selling houses is all about getting the best price possible, but gauging what vendors are likely to accept is not easy. Estate agents are adept at reading the market and assessing the situation of people selling a house, so hiring an agent could be a cost-effective move.

Once an offer has been accepted, the legal process of buying a home starts. From conducting searches to the preparation of legal documentation, a property solicitor or conveyancer will process the transaction smoothly and as quickly as the law – and the vendor – allows.

Planning a Successful Moving Day

Moving day is a double-edged sword for so many people. While moving into a new home heralds the start of a new chapter in a person’s life, it can also mean a lot of work and stress. The key to a successful moving day is preparation. Drawing up a plan for essential tasks – such as taking readings from electricity and gas meters – will ease the burden when the big day finally arrives. Moving gradually during the few weeks before the move will also allow you to savour the moment.

For free help and advice, on buying a house, or selling your home, call Flying Homes NOW on 0800 68 99 420. Get an offer too if you have a house to sell!

 

How Much Mortgage Can You Borrow? Setting a Realistic Budget When Buying A House

How Much Can You Borrow For Buying a House? Setting a Realistic Home Buying Budget

How much can I borrow for a mortgage? It is easy to get swept up in the emotion and excitement of buying a house, and even though this is the question on most home buyers minds, it is important to remember that a mortgage represents a long-term financial commitment. The recent economic troubles experienced by most of the world’s major economies had their origins in the mortgage markets – a phenomenon that was partly caused by people taking out home loans they could barely afford to repay. By assessing your current financial status and attempting to predict the future, you can ensure that the process of buying a house doesn’t hamper your standard of living for years to come.

Assess Your Financial Position with a Mortgage Calculator

Most leading mortgage providers provide a mortgage calculator and also online budgeting tools which are designed to give people an idea of what they can afford.  You will need to input your essential monthly outgoings and the sources of your income – this information will be used to ascertain the sort of house prices that are within your reach.

Include the Costs of Moving in Your Calculations

As well as the expense of a new mortgage, moving house involves a lot of expenditure that must be budgeted for. You may have to find property to rent if your own sale completes before your purchase, and this could represent a significant expense you hadn’t initially accounted for. Conveyancing fees, mortgage arrangement fees and the cost of hiring a removals company will combine to create a significant upfront financial commitment, so using a moving house cost calculator and researching extra cost and setting the necessary funds aside is a very important part of the process.

Assess the Costs of Running Your New Home

The majority of home purchases will result in higher costs of living, so a little research when you’re trying to find a property for sale will be good preparation.  You can ask estate agents for a breakdown of utility costs, or speaking directly with the vendor may also be a possibility. If you’re upgrading to a larger, more expensive property, local council tax is likely to be higher. You must also consider the extra costs of heating and power a larger property.

It is always a good idea to seek a few insurance quotes on houses for sale before making offers. The cost of insurance can vary greatly, depending on the risk of flood, the value of the property, local crime rates and a myriad of factors that could be out of your control.

Look to the Future When Planning a Mortgage

Most mortgages were taken out over a period of 25 or 30 years, and that represents at least half of the average person’s working life. What you might think is affordable now, could become a crippling debt at some point in the future. So reflect on how much can you borrow for a mortgage as often unexpected costs and expenses can arise at any time, so borrowing up to the hilt might not always be a good idea. Mortgage rates could increase unexpectedly, and that could significantly increase your monthly payments. You may lose your job, or you might become ill for a prolonged period.

No one can predict the future, of course, but having a financial plan in place that covers every eventuality is always a good idea.

  • If you become sick, is your income protected by a personal or company insurance scheme?
  • How secure is your employment?
  • What are your chances of finding a new job quickly if you are made redundant or fired?
  • Does your chosen mortgage provider offer a payment holiday option?

While maintaining the ability to meet your monthly mortgage repayments is vital, it always pays to have a little something extra put to one side for contingencies.

Buying the home of your dreams should be an exciting time, filled with promise and hope for the future. However, selling a house may be a prerequisite to buying your new property. You may be wondering how do you sell your house for the most money and in the shortest timescale to enable you to buy another? Trying to sell before you buy another property is stressful and has the potential to delay your purchase. However, you could sell your house fast using Flying Homes’ unique property buying service.

We have access to hundreds of property buyers with cash available for speedy purchases, so you don’t have to negotiate the expense, delay, and uncertainty of the open market when selling houses. We can secure the sale of your property within days – leaving you to concentrate your efforts on finding your dream home. Call us now on 0800 68 99 420 for a friendly chat and advice on selling your home fast, see our reviews, and you’ll know that you are dealing with a reputable Company!

Tackling the Legal Process of Buying a House

How to Approach the Legal Process of Buying a House

Once you have your heart set on a particular property, the legal process of the purchase of a house begins. Making a formal offer initiates the process of buying a home – based on the asking price and average house prices in the area. And once you have had an offer accepted, you will probably want to appoint a solicitor or a conveyancer to ensure a smooth and timely transaction (although it is possible to do your conveyancing). With a little planning, research and guidance from estate agents and property experts, you can give yourself the best chance possible of buying a house, hassle-free and at the right price.

Put Yourself in a Strong Negotiating Position

People with houses for sale in your chosen area will most likely want the best price possible for their property. However, if you can guarantee that buying a home will be a smooth and quick process, you could negotiate yourself a significant discount on the asking price.

Before you find property for sale, you should have your mortgage offer or funds in place. People selling houses enticed by the prospect of a quick sale might be persuaded to drop their asking price a little, as a reward. Ensure that both the vendor and the estate agent know that you are in a position to proceed immediately.

If you are lucky enough to have no property chain to contend with, this could also strengthen your negotiating position. Of course, you could be a first-time buyer, so your purchase won’t be reliant on selling a house first. Or if you are prepared to find a property to rent for a few weeks, you could sell your home first. That would give you the funds you need and the ability to proceed immediately – a situation that should present an opportunity to drive a hard bargain.

The negotiation stage is a time when the assistance of an experienced and talented agent is incredibly valuable. Not only will agents guide you on equal property values in the area, but they will also assess the situation of the vendor, which could give you an advantage during a price negotiation.

Appointing a Solicitor or Conveyancer

A conveyancer is someone who will process the legal documentation, searches, and exchanges involved in a property purchase. They are sometimes qualified lawyers, but not always. Whether you hire a trusted solicitor or a professional conveyancer, you should expect them to complete the following tasks on your behalf:

  • Compile relevant information surrounding the property, including boundary ownership, local disputes and a full inventory of fixtures and fittings

  • Compile and check certificates of permission and guarantees, including planning permission and energy certificates

  • Assess the legitimacy of the vendor’s ownership

  • Research local searches in the areas

  • Organise the payment of stamp duty

  • Process the exchange documentation and the registration of title

According to a recent article on the Guardian website, you should appoint a conveyancer at the same time as you choose a mortgage lender. You could save money this way, as some banks want only to work with a panel of trusted conveyancers. You are given a list of approved conveyancers after receiving your mortgage promise, from which you can choose the most suitable based on the following criteria:

  • What they charge, and whether they offer a no sale, no fee payment structure

  • Hidden fees for extra services such as environmental searches

  • How receptive they are to your questions

  • Can they meet your deadlines? And are they willing to update you on the progress of the sale at regular intervals?

Once you have had an offer accepted, and you’ve appointed your conveyancer, much of the work is behind the scenes. You will need to provide details of your mortgage, ID and the speedy completion of all the legal paperwork you’re asked to sign. However, with an able conveyancer on the case, you should be able to look forward to taking possession of your new home tentatively.

If you’re selling a house and buying another, and you need to sell quickly, Flying Homes can buy your house now, as opposed to you selling it slower on the high street.

Because the purchase of a new home is easier when you have no chain to worry about, it may be prudent to sell your house fast to a property buyer like Flying Homes. We help house sellers by matching them with a nationalhomebuyers service where purchasers are ready to proceed immediately, meaning you don’t have to jeopardise the chances of securing the home of your dreams by waiting about for your property sale to go through. We hope you have enjoyed our blog on the legal process of buying a house. For more information on how to sell a property quickly, call Flying Homes on 0800 68 99 420.

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