Purchasing a new property can be a stressful and overwhelming experience. Our team of experienced Property Negotiators and Conveyancing Solicitors are here to guide you through the process. Here is our brief guide for first-time buyers:
1. Working out your budget
The first thing you should do is determine the price range that you should be looking at. In order to do this, consider what sources of funding are available to you.
Are you getting a gift from family members? Using funds from an inheritance or are you planning to take out a mortgage? If you are taking out a mortgage, do you have your deposit in place? Do you have a mortgage agreement in principle? Are you aware of outlays, such as Land and Building Transaction Tax and registration costs payable to Registers of Scotland?
2. Searching for a Property
There are a lot of excellent websites where you can search for properties. ESPC, Zoopla, Prime Location and On the Move are a few good examples. Most estate agents will use one or all of these portals to advertise their listings. Properties that are suitable for first-time buyers are generally in high demand. You may be faced with fierce competition. Our advice is to check for new listings daily and not to waste any time before arranging a viewing.
Finding the perfect first home requires a lot of time and some legwork. Virtual tours will be available for most of the properties you see online which can help you eliminate some listings. A Home Report should be available for every property on the open market. If you can’t find the report online, you should enquire with the selling agents. It’s essential to make yourself familiar with the terms of the home report before booking a viewing. You might find that some properties require more work than what you would expect from the pictures.
Keep in mind that buying a home is a numbers game. You will probably miss out on a few properties before you get an offer accepted.
3. Noting Interest and Making an Offer
Once you’ve seen a property, speak to our negotiators for advice on noting interest and making an offer.
Before you make an offer, read the Home Report and raise any areas of concern with our negotiators. Any offer we submit will be subject to the Scottish Standard Clauses which offer you protection during the conveyancing process. However, it’s still best to consider whether you would like to add any specific conditions to your offer.
If other parties are interested in the property, it’s likely that the property would go to a closing date. A closing date is, essentially, a blind auction. You will be given a deadline by which your solicitors need to submit your bid. It’s impossible to predict the outcome of a closing date. Based on the competition and recent comparable sales data, our negotiators can offer you some guidance on making your offer. At closing dates, the successful offer is not necessarily the highest offer. The seller will take into account other conditions and the offer that best suits their requirements will be accepted.
4. Success! Now what?
DON’T PANIC! You don’t have a binding agreement to pay anyone anything just yet. Your first step is to start getting the funds in place. If you are getting a mortgage, speak to your mortgage advisor. They can start working on your formal mortgage application. Your solicitor will let you know what documentation is required in order to meet Anti-Money Laundering Regulations. This will depend on whether you are using savings, money from an inheritance or are getting a gift.
Your solicitor will take care of the legal aspects and will advise you every step of the way. They will ensure that you are happy with the clauses in the missives (the contract) and make sure that the financial aspects of the transaction are in place in time for the date of entry before concluding missives on your behalf. Conclusion of missives is the point when you become contractually committed to proceeding with the purchase at the agreed price and on the agreed date. You are almost at the finish line!
5. Date of entry
Concluding missives can happen weeks before your date of entry, or it can happen mere hours before you get the keys. The keys for your new property will be released once the selling agents have acknowledged receipt of the purchase price. Once you gain entry you need to curb your enthusiasm and make sure that everything is in the condition that you would expect it to be. Is the property clear of all moveable items and reasonably clean? Test the heating, check that all is fine with the plumbing and power, open and close all windows and if you see any issues contact your solicitor right away as you might be able to make a post-settlement claim to cover the cost of any unexpected damage. Ah…the responsibilities of being a Homeowner.
We hope that this has been helpful and hope to hear from you once you decide to make the first steps in purchasing your first home! Our team wishes you the best of luck with your property search!
For more information and advice, please get in touch with our Property Department at Gibson Kerr
DISCLAIMER
The content of this page is for information only. It is not intended to be construed as legal advice and should not be treated as a substitute for specific advice. Gibson Kerr Ltd accepts no responsibility for the content of any third party website to which this webpage refers. Gibson Kerr Ltd is regulated by the Law Society of Scotland.