9 THINGS I’VE LEARNT FROM BUYING PROPERTY (SO FAR)

Our house search has been going on for a few months now (read more about it HERE). It’s been a pretty intense 3 months to be honest. A lot more so than I thought it would be. I had this illusion that it would be fun and exciting. Ok, maybe it was for the first month but then the reality started to kick in. I had to take another look at my new house ‘wish list’ and narrow down the criteria even more. We’re not forced to move but it would be nice if the right house came along. Our house sold quite quickly (subject to contract) which obviously made me feel the extra pressure.

Here are few things I’ve learnt so far.

1. I T  W I L L  B E  S T R E S S F U L

This is probably no surprise, but buying a property tends to be the most expensive purchase you’ll ever make. It is stressful but there are certain things you can do to reduce the stress (just keep reading this post). Like I said, we have accepted an offer on our house (STC) and our buyer has a chain behind him. It’s not ideal if you’re looking for a quick sale but most property purchases will have a chain (unless you find a cash buyer of course). I think the hardest part for me is having to rely on other people and not having much control over the situation. You’re also competing against other buyers and nice houses tend to go quickly (at least around here). I’d hate to find myself in a bidding war. The best thing you can do is to stay calm and focus on your own mission. Don’t get too carried away with what other people are doing.

2. S E T  Y O U R  B U D G E T

You should obviously check with your bank how much you can afford before you start the house hunting process. Don’t rely on online calculators. Talk to your bank and find out exactly how much you can borrow. It might be also useful to wait for your house to sell first (unless you’re a first time buyer) so you know how much equity you’ve got, especially if you’re looking to upgrade or max your budget.

3. C O N S I D E R  U S I N G  A  B R O K E R

If you’re unable to get a mortgage with a high street bank, consider talking to a mortgage broker. Banks are very strict with lending right now and if you’re self employed, or your salary is commission based, it might be the only way you’re getting a mortgage. Brokers have relationships with financial institutions and can get you deals and rates that you won’t get anywhere else. Brokers aren’t that expensive either. They tend to charge app. £200-300 for their service of finding you a lender and the bank itself pays them a percentage of the loan (1-2%).

4. M A K E  S U R E  Y O U R  H O U S E  I S  O N  T H E  M A R K E T

We learnt this pretty quickly as the local EAs wouldn’t even let us view houses if we weren’t on the market (or at least half way through the process). The market is very competitive here, so it’s quite normal. In some cases estate agents won’t even let you view properties unless you have sold yours (or are chain free). Luckily this wasn’t an issue for us, although it does happen. Don’t forget that you cannot really make an offer on a house unless you have sold your property first, or have nothing to sell. No vendor is going to accept your bid (and take their house off the market) unless they know you’ve sold and are proceedable.  It could take months or even years to sell, so it kind of makes sense.

5. A T T E N D  V I E W I N G S  W I T H O U T  K I D S

Attending house viewings is hard enough during the covid pandemic (they will only let 2 people in at a time now), so bringing the kids along is not going to make things any easier. Of course it all depends on how old your children are, but the young ones will be a bit of work. We had our children with us for the first few viewings and I regretted it. I kept telling them the entire time to not touch anything and I didn’t get to properly inspect the house during those viewings. I had to go back twice to two different properties (by myself) just to take another look. Luckily the owners understood, but if you have a babysitter or can attend viewings during school/nursery hours it will be so much easier.

6. B E  P I C K Y

When our house sold (subject to contract) I started panicking about not having anywhere to move. I started considering houses that wouldn’t have normally made my shortlist (I didn’t want to have to let down our buyers). Luckily our buyers have known from the very  start that we are still looking. They haven’t put any pressure on us, but I know ideally they’d like to make the March stamp duty deadline. I guess what I’m trying to say is that it’s ok to be picky and take your time. I’d rather lose the buyer than buy a house that wouldn’t be quite right.

7. D O N ‘ T  T R U S T  E A ‘ S

Take everything estate agents say with a pinch of salt. Especially if they are the vendor’s agent. Some EAs are honest but others will not tell you everything (especially if they want a quick sale). They may lie to you about other buyers or totally block you from viewing a property (which happened to us). They may prefer another buyer who is with the same agent (ie. double commission for them). If that happens try to get a viewing with the seller directly (no harm posting a note through the letter box, right?)

8. D O  Y O U R  R E S E A R C H

UK house prices have hit record high and it’s easy to get carried away with covid prices. Remember the asking price is just an estimate and you should always do your own research before making an offer. Always check Zoopla to see how much the house is worth.  Zoopla isn’t 100% accurate  though (especially if there are no recent sales) but it gives you a pretty good idea. You also have to take into account whether the house has been recently renovated or extended (sometimes this is not reflected on Zoopla). You should also check Rightmove to see the recent property sales on the street you’re buying.

9. L O C A T I O N  I S  E V E R Y T H I N G

Location is absolutely everything when it comes to buying a house. It was one of the first things I mentioned on our new house ‘wish list’ and it didn’t take me long to realise that I cannot compromise on this (nor that I’d want to). We saw the most beautiful house on Rightmove, but it happened to be on a main road (a very busy one). I went ahead with the viewing thinking I could see past it but I couldn’t. I’m such a light sleeper that I’d be mad to consider living on a main road, or next to a train track (another house we viewed). These things might not be an issue for someone else, but personally I would struggle with the noise (even with double glazed windows). So think carefully what kind of location you want to be in and don’t compromise on it (unless you really have to of course). And trust your gut if in doubt.

Please feel free to comment and add to the list if you feel I’ve left something out.