10 top tips for homebuyers!

Here are ten tips that could help you get a good deal when you buy a home.

With various different contradictory stories about house prices popping up in the newspapers at the moment, it's hard to know what to believe.

This index may say house prices have risen by a couple of tenths of a percent, while this rival index says actually they've fallen. And then when it comes to what they reckon the average house price is across the UK, there can be a disparity of thousands of pounds!

But whether house prices are going up, down or sideways, it makes sense to put in the hours to get the best home for you at the best price possible. And, crucially, you must also consider whether you can afford your new home.

Anyway, if you're looking to buy, here are the top homebuying tips I've picked up over the last few months from friends, relatives, estate agents and experience.

1. Do your own research

One top reason many parents choose to move home is due to the fact they have a child about to start school, and unsurprisingly, properties in excellent state school catchment areas tend to have a hefty premium slapped on. The trouble is, catchment areas usually vary from year to year, the way they are worked out can be mind boggling (involving the school, the local County Council or both) and very few estate agents take the trouble to check.

So if you're looking to buy in a school catchment area, don't simply trust the seller's/estate agent's word that the property is within it. Call the school yourself and ask. Most should also be able to supply you with a copy of the latest catchment area map. Schools are typically very friendly and more than willing to help.

And remember you can find out all about applying for schools at the DirectGov website, and read the latest school reports at the Ofsted site. 

2. What did next-door go for?

Related goal

Sell your home

If you want to obtain the best possible price when selling your home, then these ideas should help.

Do this goal

When you find something you'd like to make an offer on, check out websites such as NetHousePrices or Mouseprice. These brilliant sites can tell you how much similar properties on the road (or within the postcode) actually sold for and when, and all for free.

Use this information when deciding upon your offer, and make sure you mention your reasoning to the estate agent when putting forward the deal.

3. Don't be afraid to make a low offer

Just because the guide price on a property is set high, it doesn't mean that's what it will sell for. Remember, most estate agents try to drive prices up when valuing properties, regardless of the current market.

Some experts reckon you should routinely ask for 10% off the asking price, or even more.

4. Extras, extras

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• John Fitzsimons writes:

  Should you use an estate agent?

  When the time comes to sell your property, should you rely on an estate agent or do it yourself?

  Read this post

If you can't do anything to drive down the price, see what you can get thrown in. Dishwashers, washing machines and fridge freezers can save you a few hundred pounds - and good quality curtains and blinds, especially for large or awkward windows can cost a small fortune.

5. Snag it

Don't forget to draw up a "snag list" on your second viewing. Check around the house and note down everything that needs to be looked at, fixed or negotiated on, before making your offer.

6. Be a snake

I know for a fact that a large number of properties in my area have had their prices reduced after having been on the market for a month or so (a true sign of estate agent overpricing if ever I saw one).

If you've only just started looking in a particular area and would like to know if any of the properties you're interested in have been reduced, check out PropertySnake -- this great site will let you search by postcode or area and find out who's had to drop their price!

7. It's not over until the fat lady sings...

..or at least until the magical exchange date comes around (and sometimes not even then). One in three property chains break down - so just because your dream home is under offer does not mean it's lost forever.

Keep in touch with the estate agent to check on the progress of the sale and ask them to call you should anything happen. If its chain should collapse its owner may need to find a new buyer in double quick time - if you're in a good financial position you could take advantage, and if you're lucky you could even find a cheeky offer is gratefully snapped up!

8. Break your chain

And on that note, don't rule out breaking up your own chain to make the process easier. If you've got a good offer on your property but have failed to find something yourself, or if part of your chain has collapsed, don't forget to consider the idea of moving in with family, friends or even rented accommodation for a short period in order to keep your sale.

Although this will put you out you could find you'll save a fortune in extra surveys and fees, and if you haven't found anywhere, your new status as an effective cash buyer could put you in a strong position over others when you find that dream home.

9. Do a drop

It may take you a couple of hours at the weekend, but if you're looking to buy in a popular area the benefits of "doing a drop" can be fantastic. Simply drop a short note through the letterboxes of properties in the area you are interested in explaining who you are, the sort of property you're looking for and give your phone number - and ask anyone interested in selling to give you a ring.

Alternatively, you could put up a card in the local paper shop. You never know, you could get your dream house (and your vendor could save himself a few thousand pounds on estate agent fees by selling privately).

10. Get the right mortgage

Finally, just as important as getting the right price on the property is getting the right funding for that purchase. And with the mortgage market a tricky place at the moment, a bit of advice goes a long way. The table below features some of the best mortgages in the market today, but I'd also advise having a chat with a mortgage broker who can give you a better idea of just which lenders are most likely to accept you, and which mortgage deals suit you best for the long term.

Head over to our mortgage centre and you can pick our fee-free advisers' brains whether by telephone, email or instant messenger.

This is a lovemoney.com classic article, originally published in August 2007 and updated

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