Step one - taking the plunge

NESTING TO INVESTING BUYING AND SELLING YOUR HOME

Whatever the reason behind your desire to move home whether you are downsizing, need more space or want to be near a better school or transport links, it is a decision that must be made using plenty of research and professional help. If you are planning to move, but feel daunted by the mere thought, let the Herald Express guide you through the process from start to finish.

For buyers, first and foremost, look at the property supplement in your local paper. In Torbay, the Herald Express' Property Guide comes free with the paper on a Friday and with over 80 pages you will find not only information, but plenty of inspiration here.
If you are selling, registering with an agent should be a priority, but there are lots of them out there, all wanting your business, so do make sure you use a member of the National Association of Estate Agents (NAEA).

Make sure you have a pro-active estate agent who will offer the best advice and marketing strategy to get you moving. The market can vary greatly in a few months and your agent should be monitoring prices and informing you if you need to reduce your asking price in order to sell. There are many factors which can effect the market. Currently these include: Interest rates. These are still very low in real terms so now is a good time to negotiate new borrowing.

The national economy is buoyant, confidence is high, and unemployment is low. These things are cyclical and the good times can’t last for ever. There isn’t a downturn on the horizon, but if — or when — one comes it would affect both property prices and the length of time that homes take to sell.

There are far too few homes on the property market in most parts of Britain. There is a lack of supply in many areas.This means that there are would-be buyers with money to spend but not enough properties to consider.

There is a chance that later this year, Gordon Brown, having (probably) succeeded Tony Blair, may call a snap election. The property market always slows in the couple of months before general elections as both buyers and sellers sit on their hands and await the outcome. It is still unclear as to what form the Home Information Pack will take. HIPs are due to be implemented on June 1, 2007 and until a better understanding of how this legislation will affect the market they are bound to have an impact, even if it is relatively short term.

Your agent must meet your needs and expectations and offer a service from beginning to end which includes excellent marketing, regular feedback and contact with solicitor right up to handing over the keys to the new owner.

To help you find your dream home give your agent as much information as possible. Make a ‘wish list’ of what you want from a property, and where you want to live. Be sure to include:

• Areas you want to consider, as well as those that are
totally off limits

• The type of property you would like — a new build, an
older terrace, a bungalow or an ultra-modern flat?

• What is the smallest number of bedrooms you can
accept?

• Is your family likely to increase relatively soon?

• Is a garden, or a garage particularly important to you?

• Do you have to have good public transport nearby?
Consider schooling for children, and the proximity to
local amenities like shops and leisure centres. It is no
good falling in love with a country cottage in the middle
of nowhere if you don’t drive and want to visit the gym
every night.

You will most probably have to compromise on some of these, but once you have registered with an estate agent, keep them updated regularly as to your position.

So, you’ve finally found a place you like. As most people only take in a small amount of information the first time, go along again with someone you trust and take notes.
Be aware that a house with no furniture can look deceptively large, and don’t be sidetracked by colour schemes or furnishings, which are superficial and can be changed. Do check the kitchen and bathroom though, as new ones can cost thousands, as can new central heating. Suspicion is good, so ask as many questions as you can, such as why the seller is moving. Ask how much council tax is, and ensure you visit the area at night, as after the pubs close, an area can look and feel very different from the daytime.

Finally, as the estate agent’s creed says, the three most important things to consider when buying a new home are ‘location, location, location’. There will be many factors affecting your choice of home, but this should be your number one consideration. You can improve the property but you can’t move it, so do make sure you’re happy with the area.

If you think you have found your dream house then you make your bid through the seller’s estate agent. The agent relays your bid to the seller and carries their reply back to you.

In areas where property prices are rising very fast you may even find yourself gazumped. Gazumping is when another buyer comes in with a higher offer at a late stage in the process and clinches the deal (gazundering is when the would-be buyer reduces their offer at the last moment).

It can be very frustrating to be gazumped, but don’t get sucked into a bidding war and don’t let emotion cloud your reason. If you can’t strike a deal at a price you want — walk away.

Ideally you will have arranged a mortgage before you find a house you want to buy. This will prevent delays. However, if you haven’t already done so, arrange a mortgage as soon as possible once your bid has been accepted.

Some lenders will issue mortgage certificates stating that, subject to valuation and status, you are a guaranteed a loan up to a certain amount. A certificate will persuade the seller that you are serious, and speed things up.

The unstoppable property market boom continues to defy January’s shock rise in interest rates.

Home prices across Britain rose 0.7 per cent in February, more than double the 0.3 per cent seen in January, according to the latest housing index from the Nationwide.

That takes the annual rate to 10.2 per cent and lifts the average property price to £174,706. This is more than £16,000 more than last year - a gain of £40 a day.

The Nationwide said the market was still being squeezed up by a shortage of properties for sale and the continued availability of competitive mortgage deals.

However, its property market experts predicted a gradual slowdown in the second half of the year as the number of buyers dries up and more homes come on the market.

Nationwide’s chief economist Fionnuala Earley said the market was taking far longer to respond to the Bank of England’s ‘medicine’ than it did at the end of the last boom in November 2003.

She said: ‘Back then fixed rate mortgage rates shot up by 1.1 per cent points in the three months after the first rate rise. In contrast, fixed rate mortgage rates rose by just 0.25 per cent points in the lead-up to the rate increase in August 2006. Given the more modest impact on mortgage costs, it shouldn’t be that surprising that the market is taking slightly longer to respond this time.’

The Bank of England stunned home buyers and the City in January with a surprise 0.25 per cent rise in rates to 5.25 per cent, the third rise since August. Although it avoided a second successive rise this month, most economists expect rates to hit 5.5 per cent by summer at the latest.