TIPS ON BUYING YOUR NEW HOME - SECOND HAND PROPERTY
Following on from Liam’s last blog with emphasis on buying a New Build, this week Liam focusses on buying a Second Hand Property. Although the factors involved in buying are quite similar for both types of properties there are a few differences to note which Liam highlights in this week’s blog.
FINANCES
As mentioned on our previous blog the most important tip is to ensure your finances are sorted whether you are buying a new build or second hand property.
If you are trading up it is ideal to have your house sold so you are a ‘ready to go’ purchaser rather than having to sell.
If you have not sold, then you need to be at least ‘Sale agreed’ on your property and preferably with a signed contract, otherwise your offer on another property may not be taken seriously or you will just lose out to another party who is in a stronger position.
LOCATION
Again focus on one preferred area to avoid becoming overwhelmed with various properties and prices.
RESEARCH
Once you know your spending power, research what properties are for sale in the area and what similar properties have sold for.
The Property Price Register is an excellent tool to assist and more often than not if you do enough digging on the internet you can find additional information on the property’s size, condition and sometimes there may even be some photographs.
QUESTIONS, QUESTIONS AND MORE QUESTIONS
Be on the ready with a list of questions you can ask the selling Agent, here are a few examples to get you started:
How old is the property?
Have any upgrade works been done, insulation, cavity wall pumping etc?
What is the orientation of the rear garden?
If there are any extensions? If so is planning permission in order?
If there is an attic conversion, does it comply with building regulations?
Does the property have a certificate of compliance?
Has the heating or wiring been upgraded in recent years?
Were there ever any flood claims in the neighbourhood?
Why are the vendors selling?
Are they trading up (may need a minimum sale figure) or trading down (may not be in a hurry so will wait for the desired amount)
When do the vendors want to close (if you have your finance arranged and no property to sell, you are in a better position than many buyers and may be the most attractive option to the vendor)?
What is included in the sale?
How long has the property been on the market? If so, is there a problem with it?
BIDDING
Bidding on a property is often the most stressful part of the process but remember not to get overly emotional as very few people successfully get the first property they bid on.
Remember your budget and place your own value on the property, a price above which you are simply not prepared to go !
When you have found the ideal property and are ready to bid you would need to make an offer in writing to the Estate Agent with proof of funds supplied and a clear outline of your position.
The Estate Agent is obliged to pass this to the vendor and also to revert to you with any further developments.
Ask the Estate Agent the position of the other bidders. You might find out that you’re a more secure bet for the vendor (you have no property to sell for example). This means if you have been outbid, you may decide not to make a counteroffer and instead stick to your original offer.
Inform the Estate Agent to reinforce the point to the vendor that you are in a superior position and more likely to be able to complete the transaction.
FEES
Ensure to factor in the often forgotten ancillary fees and costs associated with the purchasing process to avoid any unwelcome surprises;
Stamp Duty
Legal fees
Valuation costs and structural surveyor costs
Moving Costs
Get several quotes for these in advance of retaining the necessary professionals but remember cheapest is not always best and you need those acting for you to ensure they handle all matters thoroughly. Recommendation from a friend or colleague in this regard can be useful.
PREPARATION IS KEY
Remember: Being organised, targeted and smart can result in you finding your perfect home so get preparing !
LIAM HARGADEN
DIRECTOR , FRICS, FSCSI
Liam is a Fellow of the Society of Chartered Surveyors Ireland and has been working in the property business since 1989. Liam a native of Carlow was educated at Newbridge College and is a Director of Jordan Auctioneers having previously worked with Paddy Jordan in C.B.A Estates. Liam has acted for many developers and private individuals bringing enthusiasm and exceptional negotiation skills to each transaction with particular areas of specialisation including residential & country sales, valuations & development land.