A First-time Buyers Guide to Making an Offer

In this month's edition, we're on hand to offer our guidance for first-time buyers to are looking to make that first all-important offer on a home.

We also look at what buyers are prioritising when it comes to choosing a property, investigate if landlords should start allowing pets and we've top tips on how to help you to save for a deposit.

A First-time Buyers Guide to Making an Offer

 

If you’re a first-time buyer and have begun the hunt for your first home, you may think that once you’ve found the right one you simply offer what they ask for; job done! However, when it comes to making an offer on a home, there’s a bit more work that should go into it than simply offering the price advertised.

You need to be confident when making an offer that you’re not going to be stung by an inflated asking price or take yourself out of the running by offering too low. To help you prepare, we’ve put together the following information to help you through this stage of the home buying process.

Get some advice
The first and arguably most important step you need to take is speaking to an expert. If you’re a first-time buyer, then you probably don’t have a wealth of knowledge on how the market works and what you can and can’t afford. Get in touch with a mortgage advisor, get informed on how it all works and more importantly, find out what your price range is so when you do make a formal offer you can do so with confidence.

Research the local market
Once you know how much you’ll be able to spend, it’s time to get a better understanding of your local market. The more research the better. Take a look at what’s up for sale and find out what your budget will get you in each area.

Build a list of key features that your home will need, such as the number of bedrooms or a driveway. The chances of you moving into your dream property with your first move are somewhat slim; however, it’s important that you know what you’re looking for and how much it will cost you in each area.

It would be wise at this point to get in touch with a local estate agent. You can do as much research as possible, but a good local agent will always be a benefit as they will know the market like the back of their hand. This means that they can fill you in on what to expect from vendors and hopefully help you avoid any pitfalls.

Get out there and book some viewings
Now that you’ve done your research on what you want, what you can afford and what the market has to offer, it’s time to book some viewings and get out there. Things can move very quickly in the property market, so your previous work and research leading up to this point will come in handy as there’ll be no time wasted travelling to unsuitable areas or over-priced properties.

While viewing properties, be sure to check out the building's structure and not just its décor. Check for any damage such as cracks in walls or damp. Make sure you understand exactly what you’re getting into and have a good idea of the current state of the home as it can help form your offer.

When you find the right home, be ready to act!
If you’ve managed to find the right home, then it would be best to act quickly as there’s a good chance you’re not the only one eyeing up that house. If you’re ready to make an offer, consider a few things before doing so. How much do other similar properties go for in the area? Does the property need some repairs? Have house prices dropped slightly since the home was first put on the market? We’d all love to knock a few thousand off the asking price, but the seller isn’t going to make such a concession easily, so if your offer is lower than the asking price, you’ll need to demonstrate why.

The Final Steps
Now before you finally put your offer on the table, try and organise all the other pieces of the puzzle beforehand so you are ready to go as soon as it’s accepted. If you’re a first-time buyer then one of your major benefits is that you don’t have to organise selling your own home, but if you can organise such things as surveys and solicitors then it’ll make the process much smoother.

How to save for that all-important deposit

 

For most of us, the most expensive thing that we ever purchase will be a property, and the prospect of saving for that all-important deposit can be rather daunting. However, the key to saving for that lump sum is simply good financial preparation and making a few changes to your outgoings which should reap big rewards. Take a look through our handy hints and tips and you’ll be in that new home in no time.

Speak to an expert
If you have made the decision that you are ready to buy a property, then an excellent first point-of-call would be to speak to an expert, be that a financial planner, mortgage advisor or a savings expert in your bank. It is important to get a detailed overview of your personal finances and speaking to an industry expert will provide you with tailored advice which suits your lifestyle, as well as being given some proven strategies to help you to save. Whether you’re a saver or a spender, it is important to get into the right mindset to save and starting the process by speaking to an expert is a sensible first step.

Make a move
With the cost of renting often leaving many with little money to save for a deposit, making a temporary move can be a key factor in achieving a sufficient deposit. More and more people are moving back in with their parents for a period of 6 to 12 months; often paying no rent and economising through saving on laundry and food costs. If living with your parents is a truly unbearable prospect, then finding a lodger to live with you will also aid you in that all-important quest for a deposit.

Know your options
Did you know that you could buy a property with just a 5% deposit? Knowing what schemes and grants are out there will most certainly help you to achieve a house deposit. The Help-to-Buy shared equity scheme allows you to purchase a home with as little as 5% deposit and the government or developer (this is available for new homes only) lends you the rest of the deposit. Shared ownership schemes involve purchasing part of a property and then renting the rest, and although you would still need a deposit to get a mortgage for the part of the property you are buying, the deposit would be considerably lower; for example, to get a 90% mortgage on a 50% share of a £150,00 property, you would need only £7,500 for the deposit.

Make your savings work harder
Naturally, any changes you make will have one similar goal – to help you in saving more money more quickly and making these savings work for you should be a top priority. Open an ISA and use your yearly cash allowance so you don’t pay unnecessary tax; there is also a Help-to-Buy ISA from the government where for each £1 you save the government will give you 25p. If you don’t already have one, open a savings account and save what you can, even if you think the amounts you are saving are inconsequential, they will soon amount to a worthwhile value. Shop around and see which bank offers the best interest rate on your savings, don’t just take one out with your current banking provider as finding a good interest rate could go a big way to helping you reach your goal faster.

Saving for a deposit can seem like a tall order, so making some sound financial decisions will be the key into being approved for a mortgage and taking a step on to the property market. Get yourself into the right mindset where you are aware of why you are making some financial changes, remember that they are all short-term, and you’ll see those savings growing faster than you could have ever hoped.

Should landlords consider allowing pets in their homes?

 

Britain is, without doubt, a nation that loves its pets, and the pet population continues to grow; homeowners around the country have brought many types of animal into their home, from dogs and cats to birds and hamsters.

Given that the latest data suggests that 45% of British residents own a pet of some description, it’s surprising that the stance from landlords on pets in rented accommodation seems to have remained unchanged.

There are some understandable reasons behind that, of course; even the most well-behaved pets can have their accidents and depending on how responsible the owner is, they can be quite destructive.

However, a new study conducted by LSL Corporate Client Department surveyed over 3,200 people throughout the UK on pets in rented accommodation has revealed that it may be time for landlords to make some exceptions.

This survey asked its participants if and just how much they would be willing to pay to have a furry friend in the place that they are renting and the answers suggested that landlords could be missing out on some extra income, should they wish to be flexible.

31% of the 18-35-year olds surveyed are willing to pay more for their pet and would offer £25.55 extra a month on average for the privilege. This could mean as much as an average of £300 extra annual profit, so could landlords be persuaded to allow pets, providing that a deal is structured to cover the potential cost of any damages?

Elsewhere, some differences seen between male and female tenants were thrown up, with 31% of women prepared to pay more in comparison to the 23% of men willing to do the same.

Whilst the rented sector may be hesitant to adopt a more flexible approach, there has already been some movement in this direction from the build to rent sector; some developers are looking to create pet-friendly 1-bedroom units that come with a garden, for example.

“Our research clearly shows that being able to live with a pet is a huge incentive for some tenant,” offered Martyn Alderton, National Lettings Director at Your Move.

“For example, landlords could request a slightly higher deposit, six weeks instead of the usual four, to protect the property. Or, as this research shows, they could consider increasing the monthly rent slightly to cover the cost of any pet-related damage.”

Many believe that there is huge potential for landlords to increase their income by structuring a lettings agreement that allows pets but also works for them. This is an opinion shared by CEO of DogFriendly, Steve Bennet: “One of the most common questions that we receive from dog owners IS Where can they find private landlords who will allow dogs? I know from personal experience that having a dog, or as in my case, dogs, the choice of properties available to my family was severely restricted.

“Accommodation suppliers who welcome dogs tell us that dog owners usually take more care of their rooms and their properties than non-dog owners – so it really is time for landlords to recognise that one in three households own a dog, which is a massive potential market too many landlords are still ignoring”.

What are buyers prioritising when house-hunting?

 

Good schools, good commuter links and a good kitchen; traditionally, this is what has been considered to be the magic triad of priorities for buyers. However, new research has suggested that this is no longer the case. Read on to see what buyers are prioritising whilst on the hunt for a new property…

A poll from a regulated property buyer has shown that a budget supermarket has ousted the school catchment area for one of the top spots in buyer priorities, with almost 40% of those surveyed stating their desire to live within close proximity to an Aldi or Lidl. School catchment areas remain high on the wish list of buyers with 29% saying that they would move home in order to be in a specific catchment area.

The desire for good-value shopping could be linked to the need to economise after purchasing a new property, so it is no surprise that it is the younger generations who rate the budget supermarket highest; some 54% of 18 to 24-year olds want to live near to one. This figure gradually declines to 34% of over 45s sharing the same view.

The outright top spot on buyer priorities, however, is for a scenic view with 44% of people preferring a property with scenic surroundings. Budget supermarkets follow this in second place, and local bars and restaurants come in at third in the wish list of buyers.

“Everyone has their own priorities when moving to a new house, but it’s interesting to see how the overall patterns are changing. Budget supermarkets are definitely growing in popularity, especially among the younger generations, and their presence in a region is now making a place more desirable to live,” said Ross Counsell, director at Good Move.

Once a property move is completed, research also revealed what people first investigate once they have moved to a new area. Public transport links are the first item which people look into with 21% of people researching this immediately, followed by local schools, crime rates and broadband speeds.