The purchase of one’s own house is an important and often-anticipated life achievement for many. Although finally getting the keys to your new home is an exciting and life-changing moment, first-time buyers should be aware that the house-buying process isn’t exactly smooth sailing and can be rather stressful if they aren’t well-prepared.
There are many steps involved in purchasing a home, from the original search to closing the deal, which can add up to a significant amount of time. There are a variety of other, often overlooked expenses that new homeowners must factor into their budgets.
The journey will be much less stressful if you have a general idea of what to anticipate along the way. The founders of Stipendium have compiled a detailed guide that details the typical steps, costs, and timelines associated with purchasing a house, as well as advice for streamlining the process and keeping costs down.
Purchasing a home
How long it takes you to locate a home is totally dependant on your specific housing needs, the current inventory, and how quickly you manage to stumble upon your ideal place to call home. Co-founder of Stipendium John Bohan states that finding a home takes between four and thirty-six weeks.
Buyers who are well-informed about their budget constraints and the going rates in their target neighborhoods can move through the process more quickly. It’s a fast way to rule out a large number of possible homes,” he said.
However, a one to eight month timeline appears to be the norm, although it is essential to note that current market conditions are anything but normal, so homes are selling at a phenomenal rate.Because of this shortage of inventory, you may have to move in much more quickly to secure a property, but you may have to wait much longer to locate your ideal home.
Making a bid that is approved
You can make a bid on a home in a matter of minutes, but the time it takes to be accepted depends on the market and any negotiations that may be necessary. The typical time for this step is between one and two weeks.
“Sellers often want to negotiate to push a buyer’s initial offer higher, and the buyer will then want to push it lower again,” John said.
“To hasten the process, purchasers should consult with an experienced real estate agent, who can advise them on what constitutes a fair price and whether or not the seller is likely to accept it on the first try.
“To shorten this time frame, purchasers should work toward getting a mortgage approved in theory. This indicates that the lender is ready to state that they are fine with making the loan in theory. This is very desirable for sellers because it increases the likelihood that the transaction will go through and expedites the closing process.
Setting up a debt
The time between having an offer accepted and signing the mortgage agreement is typically reduced when a mortgage preapproval is obtained. The typical setup time for this is between two and eight weeks. This is the most efficient method of completing this leg of the trip. John estimated that it would cost around $1,500 to cover all the costs involved in obtaining a mortgage.
Doing Title Work and Surveys
Many things must be done in the court system before a home transaction can go through. To do this, you need to retain the services of a conveyancer or property solicitor to conduct necessary tasks like conduct searches and write contracts. This stage can take up to 12 weeks and £3,000 on average.
John adds, “It can be a very long process, often the longest leg of the journey,” which is especially true during times of high demand in the housing market. Hiring an experienced attorney can hasten the procedure, as can starting early rather than putting it off until the last minute.
Surveys play a crucial role in the purchasing procedure. In order to verify that the property is in the condition stated by the seller, the mortgage company will want to perform their own inspection. Additionally, the buyer should retain the services of a certified surveyor to verify that the house does not have any hidden structural flaws that the seller has failed to disclose.
Seller and buyer can negotiate a new price in view of any identified issues. Buyers can hasten things up by ordering surveys right away and scheduling an inspection with a surveyor in advance.
Contract Negotiation and Exchange
Contracts can be exchanged once all necessary paperwork, surveys, and mortgage arrangements have been finalized. About two weeks before closing, the lawyers for both parties will meet to finalize the contract. Two to four weeks is the average time frame.
Learn everything you need to know before purchasing a low-cost house in Glasgow, UK
Completion
Once the aforementioned steps have been taken care of, you will be almost set to move in. However, you will need to wait up to two weeks to close if you have to pay Stamp Duty Land Tax. If the purchase price of your first house is more than £300,000, you will be responsible for paying stamp duty at a rate of 5% to 12% of the purchase price. First-time homebuyers who are purchasing a property for less than £300,000 are exempt from paying stamp duty.
There can be additional expenses of up to £8,500, and the entire home-buying procedure can take up to eight to nine months.