Step 6: When you've found a house you like
The following applies to Scotland only. If you're buying in England or elsewhere, give us a call.
Once you find a house you think you might buy, you definitely need a solicitor. What happens next depends on whether the house is being offered at 'fixed price' or 'offers over'. Fixed price means that the seller asks for an exact price; you can offer that amount or, if you want, less. The seller is not obliged to accept any offer, but generally the first person to offer the full fixed price, or near enough to it, is successful. So it's usually a case of 'first come, first served'.
Offers over is different. After a while the seller will set a 'closing date', by which all offers must be submitted. Then all the potential buyers make their offers, using the 'offers over' amount as a guide. It's a blind auction: you won't know what other people are bidding, or even if they're making an offer at all. Deciding how much to bid is probably the trickiest part of the entire housebuying process, requiring market knowledge, commercial instinct and - just as important - a good slice of luck. Your solicitor plays a crucial part in this process and will be able to guide you
Fixed price or offers over, you'll need some advice on what the property is worth. Your solicitor can usually give you a good idea of what to offer, based on past sales in that street or area, together with general knowledge of the market. If you decide to go ahead, your solicitor will submit a formal offer 'subject to survey'. Only if your offer is successful do you then have to fork out for a survey of the property. Not surprisingly, there's more than one type.
First is a valuation. This is simply a report from a professional property surveyor that enables a lender to decide whether the property is worth enough, and is in good enough condition, to provide security for the loan. A valuation is the cheapest form of survey but it doesn't tell you, the purchaser, much about the condition of the property.
A full survey, or Homebuyers Report, describes the property in detail and reports on any visible defects. If anything comes to light now that you didn't know before, and that makes you think twice about buying, you have the right to withdraw your offer. A full survey costs more than a valuation.
Finally there's a structural survey: as the name suggests, this gives even more detail on the condition of the property. It's not always needed, but can be advisable if the property is very old, or in visibly poor condition, for example. And yes, it costs even more.
Your solicitor can help you decide which type of valuation / survey is right for you.
The following applies to Scotland only. If you're buying in England or elsewhere, give us a call.
Once you find a house you think you might buy, you definitely need a solicitor. What happens next depends on whether the house is being offered at 'fixed price' or 'offers over'. Fixed price means that the seller asks for an exact price; you can offer that amount or, if you want, less. The seller is not obliged to accept any offer, but generally the first person to offer the full fixed price, or near enough to it, is successful. So it's usually a case of 'first come, first served'.
Offers over is different. After a while the seller will set a 'closing date', by which all offers must be submitted. Then all the potential buyers make their offers, using the 'offers over' amount as a guide. It's a blind auction: you won't know what other people are bidding, or even if they're making an offer at all. Deciding how much to bid is probably the trickiest part of the entire housebuying process, requiring market knowledge, commercial instinct and - just as important - a good slice of luck. Your solicitor plays a crucial part in this process and will be able to guide you
Fixed price or offers over, you'll need some advice on what the property is worth. Your solicitor can usually give you a good idea of what to offer, based on past sales in that street or area, together with general knowledge of the market. If you decide to go ahead, your solicitor will submit a formal offer 'subject to survey'. Only if your offer is successful do you then have to fork out for a survey of the property. Not surprisingly, there's more than one type.
First is a valuation. This is simply a report from a professional property surveyor that enables a lender to decide whether the property is worth enough, and is in good enough condition, to provide security for the loan. A valuation is the cheapest form of survey but it doesn't tell you, the purchaser, much about the condition of the property.
A full survey, or Homebuyers Report, describes the property in detail and reports on any visible defects. If anything comes to light now that you didn't know before, and that makes you think twice about buying, you have the right to withdraw your offer. A full survey costs more than a valuation.
Finally there's a structural survey: as the name suggests, this gives even more detail on the condition of the property. It's not always needed, but can be advisable if the property is very old, or in visibly poor condition, for example. And yes, it costs even more.
Your solicitor can help you decide which type of valuation / survey is right for you.
Terms and Conditions - Privacy Statement - © Copyright 2007 ESPC UK Ltd
