As you may have read in my first time buyers house buying blog posts and videos over on my channel, we have been trying to buy our first house for over a year now. Sadly 2020 wasn’t the year for us and it set us back quite a long way. However, I know buying a first home can be a dream come true for many so I wanted to share some tips for buying your first home because if proper processes aren’t followed it can easily turn into a nightmare.
Before you make any hasty decision, here are five tips which will let you walk through the process of buying your first home without any hitches.
FIVE TIPS FOR BUYING YOUR FIRST HOME
Research the neighbourhood
Never consider yourself over prepared when investing in any new property. To begin with, make a detailed survey of the area you have chosen to reside in. Check out sites like Zoopla for the historic trend in house prices as well as the profile of the area. Chat with a local real estate agent about the latest market rates and other important things which will help in improving the resale value of the property at a later date. Make a physical tour to check things like:
School catchment area: If you’re a parent you will need to check about catchment to ensure your children will be guaranteed a place in the local school. In other words, your new house should have an address within the zone of the school you intend your child to enroll in.
Established social infrastructure: See that places like markets, cinema, playgrounds and hospitals are close at hand and readily accessible.
The neighborhood: If you’re first home is in a new area it’s a great idea to speak to the locals for issues regarding safety etc. Visit the area at different times of the day to check if it is quiet or noisy. Take a deep dive into the surrounding suburbs for property profile reports. Do a little drive-by at different times of the day to check for parking, noise etc.
Transport: Make a note of all the transport facilities near your new first home available like metro, buses, taxis and their times of operation if you depend on them to get around.
Negotiate the price
Estate agents will always keep the seller’s interest at heart as they are eager to conclude a deal in order to earn their commission. Since you are the one who is making the big financial investment, the last thing you should do is to rush your process of decision making, and avoid being pressurized to say yes. Just walk away from the deal if you think the price isn’t right. Remember, you will find scores of other properties that will suit your requirements. What I have learned from our first time buyers house buying journey is:
What is for you wont pass you by,
Again, price is not the only negotiating tool, since terms of settlement are equally important. You can ask for a discount for prompt payment, being outside of a chain or a cash buyer. The market price need not necessarily mean it is the asking price, and it’s certainly not indicative of it’s value! A house is only worth the amount someone will pay for it, which means either the seller comes down or take it off the market.
Check all documents
All the chain of documents right from the initial allotment or sale should be scrutinized to make sure that the title of the property is clear and free from all interferences. Your solicitor should have all of this covered here for you, but here are the main documents the seller should provide in original to the buyer:
- Documents pertaining to title through Government, succession, inheritance, sale, gift, will, partition deed etc.
- Nature of the property whether it is on lease or otherwise.
- Information regarding any litigation, either past or present.
- Residence status and nationality of the seller. If there are joint owners, then identification of all the sellers should be checked.
- If the property owner is of unsound mind or a minor, then sale permission from the competent authority is needed.
- Ensure that the construction has been done as per sanctioned plan which has been approved by the local municipal authority along with consent for providing infrastructure facilities.
- A copy of occupancy certificate from the competent authority to avoid risk of penalties and demolition.
- All taxes and bills should be cleared by the seller without any default.
- Warranties on any building work or structural work carried out.
Calculate extra expenses
The cost of simply buying your first home isn’t the only cost you’ll be faced with, so you’ll need more than your deposit. At the moment there is the stamp duty holiday, which can save up to £15,000, so it’s a great time to move, especially if you’re not a first time buyer.
Though your home may seem right for you there are other additional costs which must be factored in arriving at the right budget. To help you stay out of a sticky financial situation find out what the unavoidable hidden costs like insurance, utility charges and taxes add up to. You may be able to pay your monthly mortgage bills, but how much the house will actually cost you in the long run is equally important.
- Council taxes: You may find two similar houses with different price tags because council taxes vary from town to town, sometimes quite substantially. While initially it may seem trivial, they actually mean a great deal of money over the years.
- Electricity: The bigger the house the higher will be your electricity bill.
- Water: Extremely vital element of any home purchase. Check if the supply is regular and the charges as there are places where the average water bill is in hundreds of pounds per quarter.
- Home insurance: Can get very expensive in certain cities. It can add up quickly where you reside.
- Monthly maintenance: No matter how old your home is, monthly costs will come into play. House cleaning, society costs etc are big expenses which would require savings.
Estimate when you would move on
You may not consider this to be an important home buying tip, as you may never think of moving out of a home you have recently purchased. Why this should be to taken into consideration is a house purchase is normally recouped over a period of five years. So if you intend to stay in the house for one or two years, you will end up losing money due to the volatile real estate market. Also buying another house again requires time and leg work. So buy a house suitable for at least five years and ensure you plan on working in the area till then.
It is too easy to land a house that you didn’t research well and end up in an uncalled mess. I hope the crucial pointers suggested here will make your home ownership journey a less bumpy one.
Have a watch here for everything I’ve learned so far about buying our first home.
