Property sales on the rise | House hunting tips

Property sales are expected to pick up this autumn. While there is an anticipation for an increase in buyer demand, it may not align with the number of homes being listed for sale. This could lead to elevated prices and increased competition among potential homebuyers.

Interestingly, a survey conducted by property portal Zoopla indicates that one out of five buyers surveyed mentioned that they had spent less than 20 minutes searching before making their offer.

Throughout the pandemic, lockdown led some buyers to make offers based solely on virtual viewings. The high demand for indoor and outdoor space, along with stamp duty incentives, resulted in a surge in sales, especially in rural and coastal regions. We also saw many properties selling for more than the asking price and several people outbidding each other.

Since then, increased mortgage rates have slowed down sales. Nevertheless, there are indications of heightened competition among lenders, anticipating decreases in overall borrowing costs.

Tips for house hunting

Have you picked a good conveyancer?

It would be useful to choose and instruct your conveyancer prior to making an offer on a property. This will show that you are ready to proceed. Hegarty can help by assisting you with the process of instructing your conveyancer, proving your identification, explaining the searches required and obtaining your proof of funds. We want to be proactive and help complete your house purchase as quickly as possible whilst providing you with excellent legal advice.

If you present an offer to a seller, they may well ask you if you have instructed your conveyancer. If the answer is yes, this may give you a leg up over other interested buyers and show that you are ready to purchase. We can also help you with any concerns you have before you spend time and money putting in an offer.

Are your finances in order?

In fast-moving property markets, first-time buyers should consider timing when saving for a purchase to avoid missing out on properties. Estate agents verify buyers before presenting offers to sellers by conducting due diligence checks, including proof of funds to prevent uncertain offers

Have you looked at Help to Buy options?

The Help to Buy scheme is a government program designed to support first-time buyers in purchasing their first property. 

There are:

• Lifetime ISA: You can use this to buy your first home or save for later on. The Government put in a bonus of 25% per year up to a maximum of £1000. You can put £4000 in this per year up to you are 50.
• The "Help to Buy Forces" program, in partnership with the Ministry of Defence, assists military personnel in purchasing a property. Unlike Help to Buy Equity Loans, the MOD retains a stake through your employment contract.

Do you know the other costs involved?

When buying a property, consider various fees like stamp duty, mortgage fees, surveys, legal costs, and more. Additional costs may arise during the transaction, so consult your property lawyer for guidance.

Read our article Cost of Homeownership | What are the costs involved when buying a home? for more information.

Have you thought about Stamp Duty?

First-time buyers in England can benefit from Stamp Duty relief of up to £425,000 if they meet specific criteria. The relief exempts them from paying Stamp Duty if they have not previously owned any property. 

Have you spoken to any mortgage lenders, brokers or financial advisors?

Traditionally, buyers sought banking and mortgage services from their regular bank. Now, the internet offers access to various mortgage products. Consider consulting a mortgage broker for exclusive lender products.

Have you shortlisted any properties?

Once you have shortlisted properties within your budget and preferred location, arrange viewings with estate agents. Explore various marketing channels like online platforms and traditional agencies. Repeat the process until you make a selection, conducting multiple viewings to assess the neighbourhood before making formal offers.

Are you considering buying property at an auction?

Buying auction properties can be beneficial but also comes with challenges like strict time constraints for completion. Failing to meet deadlines due to a lack of a mortgage offer or financial readiness can result in losing the 10% deposit and incurring additional expenses.

Have you considered new builds?

Newly constructed properties are appealing to first-time buyers due to incentives such as financial perks. New build developments include affordable units offered at subsidised rates or through shared ownership.

Is the price right?

Ensure your proposed property price aligns with recent transactions in the area to avoid issues with mortgage lenders who rely on independent valuations for lending decisions. We also encourage all of our clients to obtain an independent survey at the earliest possibly opportunity. If there are any defects in the property not revealed, you have an early chance to renegotiate the sale price to account for any such issues.

If you’re thinking of moving home, contact our experts today and find out how we could help you.