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From The Times

June 12, 2007

Step-by-step guide to buying your first property

By Paula Hawkins

SO YOUR mortgage is approved, you’ve scoured your desired area and found that perfect little home. Don’t get too excited, though, because the fun bit is over and it’s time to get serious.

Make an offer: Before putting in an offer, try to glean as much information from the estate agent as possible. Ask how long it’s been on the market and if the seller wants a quick sale. Initially offer below the asking price and be prepared to have this offer rejected. This is the beginning of negotiations. But remember, stick to your budget (which might include stamp duty costs of 1 per cent of the asking price from properties in the £120,000 to £250,000 bracket).

Once your offer has been accepted: Ask the estate agent to take the property off the market and then instruct a solicitor. Ask for a few quotes and follow up personal recommendations. It is best to agree a one-off fee with your solicitor, otherwise you could face a lot of extra charges. Your solicitor will take over the legal issues and make sure that all the vital checks, including those listed below, are carried out.

Land Registry search: This confirms whether the seller has the right to sell the property and whether there are any outstanding rights over the property (ie, a loan secured against it). The solicitor will then register the transfer of ownership into your name. This will cost you from £40 to £500, depending on the value of the property.

Local authority search: This checks that there are no local plans that may affect the value of the home (main roads or superstores being built, for example). There is a flat fee for this, which is usually about £170.

Survey: There are three main types. The first is a valuation survey, required by your lender to check that the value of the property covers its loan. This normally costs about £200. It is a good idea, however, to get your own survey done. You can either pay for a home buyer’s report, which will cost you about £400, or a full structural survey, which is more expensive.

Exchanging contracts: Once you and your solicitor are happy with all checks and queries and have agreed the draft contract (which can take some time), it is time to exchange. You will sign the contract and pay the deposit. If you pull out now, you will lose your deposit. Once contracts are exchanged, a date for completion of the purchase can be agreed. Remember to book the removal company.

Completion date: You can pick up the keys and move in.