With the housing market hotter than ever, finding the perfect home, at the right price can be hugely challenging. There is little room for error, which can be daunting, especially for first-time buyers. From doing your research to asking the right questions at a property viewing, every step of the process is crucial.
With 44% of first-time buyers having to put their investments purchases on hold, the level of anxiety surrounding what to know in 2021 has inevitably risen. When it comes to investing in property - potentially the largest purchase you will ever make - no question is a silly question. Now that there is movement on cheaper mortgage rates, it will be easier to get on the property ladder and questions will need to be asked before it’s too late!
We spoke to property experts Karina Hutchins, head of Home by OpenMoney and Matthew Firth, CEO, Granville Developments to gather some professional insight into what to look out for before making the biggest purchase of your life:
Before viewing a property
Doing research before a property viewing is easily forgotten - but this is exactly when your work should begin.
If it is a new build, Matthew suggests a thorough check of the developers to make sure they have a good track record. He said: “No matter how established the developer is, it’s always important to explore their previous work when considering a new build purchase. If they have any finished developments that are close enough to visit, it would be worth taking a look.
For other properties, find out what amount the property was previously sold for and how long the property has been on the market.
Questions such as - how long the owners have had the property? Are they selling it after a short period? are also important to understand what you will be investing in. “Ask the estate agents to give you examples of similar properties they have sold in the area recently so you have an understanding of the wider market,” said Karina.
At the viewing
Viewing is an opportunity to get a feel for the place and visualise your perfect interior, but it’s also your chance to get under the skin of the property and find out extra information from the agent.
Consider the orientation of the house and how this will change the sunlight in the rooms or garden. Check for plaster cracks in the walls and that the internal doors shut neatly in their frames – both of which could point to structural damage or ageing. Karina said: “Ask how many plug sockets are there and if that will work for you? How old are the windows are and are they double glazed? These are the most basic yet essential questions as these things often turn out to be the most expensive changes after purchase.”
“If there isn’t a driveway, then what is the parking situation in the street like? If there are any loft conversions or extensions - has the owners got the relevant building regs documentation? Also, don’t forget to ask about the boiler and find out how old it is too.”
Matthew suggests looking out for any restrictive covenants that prevent homeowners from altering the appearance of their property. “If you are buying a new-build, it is of utmost importance that you find out whether you will be affected by this restrictive rule prior to purchasing your property, as this will impact any future changes that you would like to make as well as your ability to sell the property further down the line.”
After the viewing
If work needs carrying out on the property, then spend some time after the viewing to research the approximate cost of this work – this additional insight will help shape a potential offer and help you decide if you can afford it.
For new builds, make sure to confirm with your developer whether any other phases are planned for the future. “Imagine you purchase your ideal home, enjoying the beautiful view from your south-facing garden, only to discover that the developer is extending the development, replacing your view with somebody else’s house. Before you commit to your purchase, make sure to confirm with your developer whether any other phases are planned for the future,” warned Matthew.
Make sure to find out what the council tax is for the property, and if you’re buying a flat, what the ground rent and maintenance charges are. These are important factors to consider when looking at your monthly budget, and if you can comfortably afford your mortgage repayments, bills and a buffer for socialising.
“If it feels right and you are thinking it might be one to make an offer on, then have a look at what your mortgage repayments might look like – you can easily do this using one of our home eligibility tools by creating an account and following the instructions,” shared Karina.
Making an offer
If work needs carrying out, then make sure you consider this and that it’s reflected in your offer.
A general rule of thumb is that if a house has been on the market for less than two weeks and has multiple viewings, it’s hot property. If you want it, then expect to offer the asking price (unless additional work or factors for a price reduction apply).
If the property has been on the market longer than two weeks, then you might get away with offering less. Putting in an offer of 10% under the asking price is seen as acceptable – anything less and you might not be taken as a serious buyer.
