Five ways to make your property search easier

In this month's edition, we start off by offering our top tips to make your property search easier.

We also detail what the potential abolition of Section 21 could mean for landlords, we've suggestions on how to go about getting the best mortgage possible and finally, if you're looking to add more value to your property, why not read our guide?

Five ways to make your property search easier

 

We all know that searching for a home can be quite a long process. Studies have shown that it can take up to 3-4 months, with most buyers viewing a total of 8 houses on average before finding the house that’s right for them. The only way to make it easier for yourself is by doing a little research and preparation before you dive in, so with that in mind, we’ve put together 5 simple steps to make your hunt for a home that little bit easier.

Figure out your finances
Before your search begins, you absolutely must figure out exactly how much money you have to play with, taking into consideration the full cost of buying a home. It’s not just the cost of the property, but also the cost of surveys, stamp duty and more.

There is no such thing as ‘too early’ when it comes to looking at mortgages and speaking with financial advisors. While setting up meetings and discussing your finances with a mortgage advisor can be time consuming in itself, once you’ve determined your maximum spend it allows you to greatly refine your search and also puts you in a stronger position further down the line when it comes to negotiating.

Separate your wants from your needs
You probably already have an idea in your head of what your dream home looks like, what features it has and the type of area its located in. Unfortunately, for most buyers finding your dream home takes a lot of luck or a lot of money, so you need to decide early on which features are the ‘must haves’.

Every buyer’s criteria is different, whether it is the size of the kitchen, being close to a good school or the number of bedrooms. A successful home search does require a little bit of compromise; separating your wants from your needs allows you to begin your search with a lot more focus, saving you time in the long run as you won’t need to book an endless series of viewings.

Take advantage of all the information available to you
In the past, a lot of property information such as how much it previously sold for, floor plans and general statistics for the area were not as easily accessible as they are today. There are plenty of websites that allow you to do that extra bit of research, allowing you to make more educated decisions throughout the process.

Find out what the average price is for homes in your favourite area and delve a little deeper; take a look if a home you have your eye on has a surprisingly high flood risk, for example. Buying a home being the biggest purchase you’re ever going to make, so the extra research you put in could not only protect you from hidden disasters in the long term, but also means you’re able to be a little more brutal with your shortlist as you take advantage of the wealth of information available online.

Get in touch with us!
While the internet does hold plenty of useful information on the property market, if you’re looking for in-depth knowledge of the local area, then your local estate agent is always your best bet. By speaking to your agent, you can get some more information on the current state of the local market, which is incredibly valuable information if you’re moving to a new area.

If your essential property criteria include the commute to work or the good local schools, a good agent will be able to bring even more focus to your search and help you avoid any homes that are unsuitable to your needs.

Be thorough, be brutal
Once the viewings begin it’s important that you gather as much information as possible during your time in the property. Take notes, take photos and ask plenty of questions. After a few viewings you may find that all the properties begin to blur together in your memory, so the more information you collect the first time around, the more time you save from not having to make repeat viewings to feel the place out.

At this point, you’ve already made a list of the things you can’t live without, so to speed up the process, you should also create a list of things you can’t live with. If your shortlist only contains 3 or 4 properties, then it may be best to take a slightly more lenient approach when discovering a room will need completely redecorating. However, if your shortlist of homes is in the double digits, you’d be wise to be thorough and spot any deal breakers early as a long list of homes will require you to be brutal, unless you want to spend months going from viewing to viewing.

Overall, the key to a successful property search is to make sure you’ve done your homework and have as much information as possible to make an educated decision when you see ‘that’ property and your heart takes over. Being able to determine exactly what you want early can be a massive help and by combining the online information with the knowledge of your local expert, you can make finding a home a much smoother process.

 

Read our top tips to secure the best mortgage

 

It’s practically step one on every homebuyer’s to-do list; get your mortgage approval so you know what your budget is for your property search. However, don’t just stick with your own bank or jump at the first mortgage which is offered to you; follow our tips to help you to get the best deal on your mortgage.

Deposit
Often the biggest hurdle to buying is the deposit itself, but spending more here should save you money in the long-run; the general rule is that a larger deposit will result in a more favourable rate as well as having a favourable impact on credit scores with lenders. With mortgages categorised according to their loan-to-value (LTV) – the percentage of the mortgage as a value of the property – the more equity you have, the lower risk you are to the bank.

Shop Around
It may seem like the easiest option is to simply take out a mortgage with the same bank that you conduct your personal accounts with; however, this will restrict your view on the mortgage market to a single lender. Looking around independently will help you to learn about the mortgage jargon and understand exactly what kind of proposition will suit you best. Comparison services will do a lot of the legwork for you, but remember that some of these require services charge, so if you can, find a no-fee broker.

Avoid bumps in the road
Having your documents in order seems like common sense, but a sure-fire way to having your application declined is to have inconsistencies in your paperwork. If you have recently married or changed address, for example, ensure that your documents reflect the correct details. Whilst you’re updating and verifying your documents, it’s certainly worth registering for the electoral roll as this has a huge bearing on the scoring system for lenders.

Fixed rate or tracker?
Put simply, a fixed rate mortgage locks in an interest rate for a specified time period, whereas a tracker mortgage has a variable interest rate which follows, or “tracks”, an external interest rate – frequently the Bank of England’s base rate. Deciding on which mortgage variant to take out depends on your financial situation; if you can afford to potentially pay higher mortgage amounts should the rates rise, then taking out a tracker mortgage could give you a lower starting rate to begin with. Alongside this, it also allows the opportunity that over the duration of the mortgage, you end up paying cheaper than if you had a fixed rate. If you need to know exactly how much you will be paying each month, then a fixed mortgage could be the best choice to avoid any unwelcome surprises – even if the initial rate is higher than other offerings.

Credit score
Having a great credit score is a huge help when it comes to getting an attractive mortgage rate, as lenders are keen to lend to those with a good history. Also, if you have a smaller deposit then it is essential to have an impeccable credit score, whereas having a larger deposit will result in more leniency if you have a lesser credit score (although you may struggle to achieve “high street” rates). If you want to cultivate the best credit score possible then there are a few steps you can take immediately; ensuring any outstanding debts on credit cards etc. are paid in full each month to show a strong payment history and clearing any outstanding debt are a good place to start.

The best ways to add value to your property

 

When we decorate our properties, it is often driven by personal preferences in order to make a space fit into our own idea of what is stylish. However, if you are not just looking to decorate a space but to maximise the potential value of your property, then read our guide which explores the best ways to add worth to a home.

Solve existing issues
If you’re thinking of adding value to your property then don’t jump straight to improving the aesthetic of particular rooms in order to gain the much-lauded “wow factor”; instead, make sure that your property is structurally sound. It may have less cosmetic impact, but a house with a leaking roof, subsidence or damp will be severely hindered in achieving a strong asking price due to the perceived costs and effort in fixing the issues. Take the time to assess your property and ensure there are no major defects, and this will give a solid foundation for your property to achieve the best price on the market as buyers will not be scared away by problems, nor will they be able to barter the price down.

Central issue
Take a look at the central heating system in your house - does it look modern and fit-for-purpose or is it on its last legs? If your central heating isn’t quite up to scratch, then replacing this is a sure-fire way to add value to your property as it is another issue which has the potential to put off potential buyers. Although the initial outlay for the central heating refit may seem high, you should more than recover these costs when selling the property as it is another key point which will assure buyers that your property is well-cared for.

Extra space
Adding additional living space will always attract potential buyers as this offers them versatility in the way in which they will use the property; however, before you convert that loft or garage then we would recommend doing a little research. A converted loft can add thousands to the asking price of your property, so it is certainly something to consider – before you undertake this do take a look at similar properties in your area and do some investigation as to what the top selling price has been lately. There will be a ceiling price to the properties in your area, and therefore before you add a room, make sure that there is the potential to recoup the cost in the asking price of the property.

Decoration
If you’re looking to add value to your property without any major outlay, then picking up the paintbrush could be the answer. Freshen up any paint that has seen better days around the house and do the same in the bathroom, checking on any sealants to ensure they are crisp and clean. Clean up a few simple defects and potential buyers will see your property in an entirely different light, willing to pay more for a home that they perceive to be in excellent condition. This should extend to the frontage of your home, so ensure lawns are mowed and outside areas look cared for.

Kitchens and bathrooms
That old saying that homes are sold due to their kitchens and bathrooms is true, to an extent. Having a modern kitchen and bathroom will add considerable value to your property, as well as generating much more interest from potential buyers. If you don’t want to invest in a brand-new kitchen and bathroom, then update your current spaces in order to make them more sellable. Kitchen cabinets can be painted to modernise them, and changing the door handles to something sleeker will also help to create the feeling of a newer space in the kitchen. In the bathroom, refresh the paint on the walls, keeping it as neutral as possible, and ensure that the space is bright and airy – add mirrors to make the space feel bigger, and use accessories to add colour into the space.

 

What could the abolition of Section 21 mean?

 

With the recent reforms taking place in the lettings market with regards to the Tenant Fee Ban and the Fitness For Human Habitation Act, you would be forgiven for missing the recent news from the Government that will make it more difficult to evict tenants.

Plans to abolish Section 21 – the right for landlords to evict tenants from their property after their fixed-term contract has come to an end, and with no need for a reason to be given (as long as eight weeks’ notice is allowed) – have caused some uproar in the lettings community with landlords concerned and tenant campaign groups hailing it as a “massive victory.”

The main concern highlighted by landlords have been around difficult tenants in their property and how they will now be able to evict them. The short answer is that once Section 21 is abolished, landlords will have to enact Section 8, which has more stringent rules with regards to evictions, as highlighted below.

A tenant can only be evicted with Section 8 should they:
Fall into rental arrears
Are involved in criminal behaviour
Are involved in antisocial behaviour
Have broken terms of the rental agreement (such as damaging the rental property)

The Government intends to add some caveats to Section 8 in order to make it more fit-for-purpose in the absence of Section 21, such as the fact that landlords will also be able to evict tenants should they wish to sell the property or move back into the dwelling themselves.

Of course, despite the news that this Government proposal has created, the actual likelihood of a landlord evicting a tenant is low as that is counterproductive. Landlords do not evict tenants for no good reason as that is simply not good business; instead, the motivation to find and retain tenants is the modus operandi for every landlord in order to get some returns on their investment. So, if you are worried about the potential changes which the abolition of Section 21 evictions could cause, then rest assured that should the genuine need to evict a tenant arise, you will still have the power to do so.