First Time Buyers
After dealing in properties for over a decade, it’s easy to forget how daunting buying your first property can be. Thinking back to my first purchase is enough to bring out the cold sweats!
Here at Fiuran Property, we understand how terrifying it can be (we’ve been through it after all), but we also understand the immense pleasure of actually owning your first place – being able to decorate the walls however you want, total control over the TV remote, being able to spend hours in the bath without constant banging on the bathroom door…bliss!!
We have currently got a great range of properties ideal for the first-time buyer, and we are always happy to help, so please don’t feel intimidated if you have never bought before – we’ll help as much or as little as you want.
In the meantime, here are a few links to articles which may be helpful to those thinking of buying their first home:
Money Advice Service – Buying property in Scotland – a money timeline:
https://www.moneyadviceservice.org.uk/en/articles/cost-timeline-for-buying-a-property-in-scotland
Channel 4’s first-time buyers guide:
http://www.channel4.com/4homes/buy-sell/buying-property/buying-advice/first-time-buyers-guide-to-buying-a-house-08-06-24
This is Money – The first-time buyer’s guide to getting a mortgage and climbing onto the property ladder:
http://www.thisismoney.co.uk/money/mortgageshome/article-2263815/The-time-buyers-guide-getting-mortgage.html
Help to Buy Scheme (England):
https://www.gov.uk/affordable-home-ownership-schemes/overview
Scottish Government Shared Ownership Scheme:
http://www.scotland.gov.uk/Topics/Built-Environment/Housing/investment/grants/hso/
Please note, we are not responsible for the accuracy of any external links. Please also note that some of the advice given by them may only be relevant or applicable to other parts of the UK.
Posted in Advice, property | Tagged buying, first time buyers, help, help to buyWhy do house sales fall through…and how to avoid it happening? (Part 2)
As we looked at in Part 1 of this blog, house sales can unfortunately fall through sometimes, and although there are some factors that are beyond our control, there are things that can be done to minimise the risk of this happening.
In Part 1 we looked at boundary disputes and financing issues which can cause a sale to fall through. Now we will look at a few more factors, starting with one attributable to ‘the human condition’.
A change of mind.
Cold feet or, as it’s often dubbed, “buyer’s remorse,” happens surprisingly often: fear of commitment, fear of being overextended, fear that the house is not “the one.” Sometimes instincts are correct, but often people let the natural anxiety of home buying wrap around the home itself.
There are many reasons why a person may change their mind and wish to back out of a property deal and unfortunately there’s very little can be done to avoid this. Fortunately, as mentioned in our previous blog Lucky to be buying and selling in Scotland, the Scottish conveyancing system largely prevents ‘hollow’ offers being made on properties, however that doesn’t mean to say it can’t happen.
A change of circumstances.
With some transactions taking up to 6 months (and beyond in some cases), it is not surprising that a person’s circumstances may change in that period. Perhaps a loss of job, or possibly a promotion that involves a relocation, resulting in what was the ideal property suddenly becoming not viable. A new addition to the family could also appear on the horizon in a six month period, and so that beautiful penthouse flat with glass and granite finishes may no longer be the perfect home.
A lot can happen in 6 months, indeed as John Lennon was reputed to have said, “Life is what happens to you while you’re busy making other plans.”
As with many of the other situations we have looked at, there’s not much that can be done about a person’s change in circumstances, however what you can do is ensure your house selling and buying teams are ‘on the ball’ and do whatever you can to avoid any unnecessary delays in the process thereby lessening the chance of such things occurring.
Someone in the chain hasn’t been able to sell.
Fortunately in Scotland large selling chains aren’t common, and even less so in Argyll, however they do exist, and the more parties involved in a chain the greater the chance of one or more of the factors above happening to one or more parties in the chain.
It is always desirable to keep a chain as short as possible, and a vendor can eliminate the upward chain entirely by moving into rented accommodation, or by having already purchased their subsequent property, or maybe even by going sailing round the world (we can all dream!).
Unfortunately, there is little we can do about our buyer’s circumstances – the downward chain – however as we mentioned in part one, sellers should always view offers as an entire package, and not necessarily go for the highest offer made. If the highest offer made on a property came from a buyer who would be part of a chain, it is worth considering whether the extra money is worthwhile given the additional risk and complications that a downward chain can bring.
Hopefully this blog has highlighted some of the more common reasons that house sales can fall though and, more importantly, how to potentially avoid them.
In summary, as with many things in life, the key is good communication and you can be assured that Fiuran Property recognises the importance of this and will be with you every step of the way.
Why do house sales fall though…and how to avoid it happening? (Part 1)
As mentioned in the previous blog Lucky to be buying & selling property in Scotland, we are quite lucky here that once the deal has been struck and formalised (with missives concluded), a legal contract has been agreed and only in exceptional circumstances will a sale that has reached this point not conclude.
However, prior to the missives being concluded (which is often timed to be just before the date of entry anyway) there remains the chance that a sale will not go through to completion and, although the potential reasons are innumerable, we’ll look at some of the more common reasons for this, in the hope that they can be avoided.
Of course, the longer a sale takes to progress, the higher the chance that one (or more!) of these issues may occur and so one of the best ways to ensure that a sale does go through is to eliminate any unnecessary delays in the transaction. Equip yourself with a reputable and reliable Solicitor who, whilst also being meticulous and thorough, can act swiftly on your behalf.
Boundary and Title Disputes.
Most people don’t look at, or even think about, the title to their property for the duration that they live there, simply as there is rarely any need to. Fences, walls, hedges etc are generally accepted as the threshold to a persons property (whether the correct boundary or not!) and are rarely questioned. However, come sale time, it is vitally important that all boundaries are correctly identified and demarked, and this is particularly relevant now that the Registers of Scotland have adopted a map based system for recording titles.
Whilst the new system is far more accurate, a property is generally only recorded on the new system when a sale is effected, and it is therefore likely that any property being sold currently will be recorded on the new system for the first time.
What this means in the short-term is that the conveyancing process will be more complex and may take longer and, if possible, a vendor might consider speaking to his/her solicitor to discuss the property title prior to putting a property for sale, and ensuring the actual boundary is where the owner, and all surrounding neighbours, think it is. Time spent on this prior to the house going on sale may well reduce the time taken for the conveyancing process later and, as we’ve already noted, the chance of a sale falling through will increase the longer the transaction takes.
Financing
Whilst a buyer is likely to have enquired about the level of financing he/she can obtain before property hunting, a formal offer of a mortgage will only usually be made on a specific property once the buyer has finally chosen a property he/she wishes to buy, which is why many offers made in Scotland are made ‘subject to finance’. The buyer’s Solicitor should be establishing their client’s wherewithal to complete the purchase, however the Lender themselves will of course be making the offer subject to conditions, and if these conditions aren’t satisfied – for example a survey highlighting issues with the property – then the finance may never materialise, leaving the buyer (and seller) without a sale.
This is a difficult one for the seller to avoid, as the buyer’s financial position is obviously beyond the seller’s control, however a seller should always view offers as an entire package, and not necessarily go for the highest offer made. For example, a £1,000 difference in offer could easily be overshadowed by extra mortgage payments as a result of a sale falling through.
“A bird in the hand is worth two in the bush” as the old saying goes!
In Part 2 of this Blog, we’ll look at some other common reasons for sales not reaching completion (some easier to avoid than others!)
Posted in Advice | Tagged concluding missives, delaysHouse: Home or Asset?
House. Home or Asset?
The answer is, of course, it’s usually both. However, the two have very different meanings and connotations. When you think of a home, you think of a haven, something very dear and intrinsic to our feeling of well-being, security and happiness. It is also something very personal, a showcase of our tastes and, to a degree, an extension of our personalities. Whereas an asset is almost the complete opposite, something cold and unfeeling, generally viewed only in terms of monetary value.
However, for most of us, our home is our biggest asset. So what happens when we come to sell?
The house that has been a home for often many years now needs to be viewed as an asset for which we need to maximise its value, and understandably, many sellers find it difficult to make that transition and ‘shift the mindset’. Indeed, when an Estate Agent arrives and advises the client that they should present their house neutrally and perhaps make a few changes to “maximise the sell-ability”, the client may see this as a slight on their tastes and a criticism of their taste in decor!
However, the fact is we’re all different and whilst it is (just) possible that you will find a house buyer with the exact same tastes as yourself, who just happens to be in the market for a house around your selling price at the exact time you are selling, the chance of this happening is incredibly slim. The best chance of selling your house for the best possible price is to make it appealing to as many people as possible so that you hopefully have a high number of interested parties. By no means make the house devoid of all character and charm – those are attributes that are hugely desirable and will help sell a property – however buyers can often find it difficult to see past strong design choices and a surfeit of personal belongings, and need to be able to see how easy (or not!) it would be to tune the house to their tastes, and to “put their own stamp/mark” on it.
As with many things in life, it’s all about balance, and at Fiuran Property you can rely on our experience to guide you with the presentation of your house so that it’s just right, helping you achieve a swift and successful sale, so that you can get on with the fun task of creating your next home!
Posted in Advice | Tagged fiuran, help, presenting your home, property, sellingLucky to be buying & selling property in Scotland
Reading this recent BBC article, I was reminded how how lucky we are in Scotland with regards to the house buying and selling process. I suppose many in Scotland will not have had any experience in buying or selling property in England, however the process is quite different in a number of significant ways.
Loosely speaking, the English system permits to you make an offer on a property but it is generally not legally binding and you therefore have the ability to pull out of the deal at a later stage with almost no ramifications. This allows buyers to make offers on multiple properties with reckless abandon. It can also lead to some buyers (and sellers) making unreasonable demands at late stages in the process as they know that they can pull out of the deal and they may be aware that the other party will likely be very keen not to lose the sale.
Fortunately, ‘Gazumping’ – where the seller attempts to raise the agreed price after a deal is struck – is practically unheard of in Scotland as our system generally protects buyers from this sharp practice.
The buyers can be at it in England too – ‘Gazundering’ is where the buyer demands a reduction in the agreed price, again, at the late stages in the negotiation to try to force the seller to agree to their demands or risk losing the sale.
In Scotland, once an offer has been made, and has been accepted by the seller (and all conditions have been satisfied and agreed) then a legally binding deal has been struck, which offers security and stability for both buyer and seller. Something that is very important when buying and selling a home which is reputed to be the second most stressful life event!
The mandatory survey (Home Report) is a fundamental part of the Scottish system, as it allows the buyer to be informed about what it is they are potentially buying.
That said, however, the phrase ‘Caveat Emptor’ (let the buyer beware) is used regularly in house buying transactions in both Scotland and England, as it is important that the buyer satisfies themselves regarding the condition of the property. It is often necessary to take a ‘belt and braces’ approach, as a property is usually the biggest purchase an individual will make in their life, so you can never be too careful!
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