Buying a property
Accepted an Offer, Now What? A Step-by-Step Guide for Buyers and Sellers
Accepted an Offer, Now What? A Step-by-Step Guide for Buyers and Sellers
Congratulations! Whether you are buying or selling a property, an accepted offer marks a major breakthrough in any real estate transaction. But it is really just the beginning. Of course, after the acceptance of the offer, there are certain steps to be followed in order to make sure the sale/purchase proceeds without glitches.
In this blog, we will show you what happens once an offer has been accepted. We will explain the process of buying or selling a house in the UK from both the buyer’s and seller’s side.
For Sellers: What Happens Once You Accept an Offer?
Confirmation of Offer Once you have accepted an offer through your estate agent, he, in turn, will confirm this in writing to both parties, accepting the offer that the buyer has made. Remember, at this stage, as mentioned earlier, the sale is not legally binding until contracts are exchanged.
Drafting Contracts Your solicitor or conveyancer will now begin to draft the contract of sale. This is where all the important details such as price agreed upon, the boundaries in which the property stops and starts, fixtures and fittings included within the sale, and likely completion date are compiled. You will be required to collate and provide documents that include but are not limited to:
– Title deeds
– Energy Performance Certificate (EPC)
– Property information forms
Property Survey This is likely to be arranged by the buyer and would involve an inspection to identify any potential problems with the home. If any major issues crop up, the buyer might ask for a reduction in the agreed price or for the problem to be rectified before exchanging.
Buyer’s Mortgage Application The buyer will complete their mortgage application. The lender might want their own valuation of the property to confirm its value against the mortgage offer.
Negotiations and Enquiries Sometimes, buyers have questions or require more details about your property. Your solicitor will help you sort out their issues. Sometimes, negotiations may reopen if problems show up from the survey or from a legal check.
Exchange of Contracts Once both parties are satisfied and everything is in place, you will move to exchange contracts. At this point, the sale becomes legally binding, and any pullout by either party can involve serious financial penalties.
Completion Once the contracts are exchanged, then both parties agree on a completion date, a day on which the buyer officially takes over and becomes the new owner. Payment of the final amount is made on this day, and the keys are handed over to you, therefore completing your sale.
For Buyers: What Happens Once Your Offer Has Been Accepted?
Approaching a Mortgage Once your offer is accepted, securing your mortgage should be the first thing to do. If you already have a mortgage in principle, it is time now for your full application. The lender then checks the property and your financial situation and makes a formal mortgage offer.
Property Survey Organise a property survey. There are several types, such as homebuyer’s report and full structural survey, according to the age and condition of the house. It should discover any probable complications, giving you either a reason to withdraw or a bargaining tool to adjust the offer price.
Engage a Solicitor/Conveyancer You will also need to engage a solicitor or conveyancer to take care of the legal issues regarding the purchase. The searches on the house will include the local authority searches for any outstanding planning issues or disputes, as well as confirmation that the seller has the right to sell the property.
Property Searches and Enquires Your solicitor will conduct property searches that may reveal legal problems that could impact your purchase decision. These searches include:
– Local authority searches regarding planning permissions, risks of flooding, etc.
– Land registry searches to confirm ownership
– Environmental searches concerning contamination or hazards
Finalising Your Mortgage Once your solicitor is satisfied with the results of the property searches and your survey, you will finalise your offer for the mortgage. The mortgage lender may conduct their own valuation to ensure that the property’s value is indeed as agreed upon.
Exchanging Contracts Once everything is in order and you’re satisfied with the conditions regarding the property, your solicitor will arrange an exchange of contracts. You’ll be expected to pay your deposit at this stage, usually 5-10% of the purchase price. The sale is now legally binding, and you’ll be committed to buying the property.
Completion: This is the last stage, where the balance purchase price is paid to the seller’s solicitor, and the property becomes yours. You will be given the keys to get in on the agreed date for completion.
Things to Remember During the Process:
Patience is a virtue. The time between accepting the offer and completion, if the sale is complex, can take several weeks. Be prepared to bear some delays either in your mortgage application, the survey, or the solicitor process.
Keep in contact: Ongoing communication with your solicitor, estate agent, and buyer/seller will keep things moving along without hiccups. Ensure you respond as soon as possible to any request for information or documentation.
Be prepared for unexpected issues: Sometimes, property surveys or searches uncover unexpected issues. If there are problems, work with your solicitor and estate agent to work your way through negotiations or amendments to the sale.
Closing Words: Sell or Buy? Look No Further. We are here to make buying or selling a property as smooth and stress-free as possible. Our comprehensive services, valuations through to marketing, legal support, and quick sales will guide you at each stage at a competitive price.
When you are ready to make your move, call us today. Our specialist staff is ready to assist you in buying or selling your property as fast and efficiently as possible, keeping costs as low as possible. Let us handle everything while you focus on the next chapter!
Selling
UK Estate Agency Fees for Selling
Estate Agent Fees in the UK: What You Need to Know When Selling Your Property
Selling in the UK can be a nightmare; there are so many costs to consider. One of the biggest is the estate agency fee. Whether you’re a first-time buyer, a landlord or a seasoned seller, you must know these fees to make an informed decision. In this post, we’ll look at the different types of estate agency fees, what affects the cost and how to haggle.
Fees
Commission Based
Commission-based fees are the most common type of estate agency fee in the UK. These are a percentage of the sale price and are paid on completion. Typical commission rates are 0.75% to 3.5%, depending on the property’s value, location and the services the agent provides.
Fixed Fees
Fixed fees are a set amount for estate agency services regardless of the property’s sale price. This gives sellers clarity and certainty as they know exactly what they will pay upfront. Fixed fees can be a few hundred to several thousand pounds, depending on the agent and the level of service.
Results Based
Some agents offer results-based fees dependent on achieving specific outcomes, such as selling the property within a certain timeframe or above a certain price. This fee structure can incentivise agents to get the best results for their clients.
What Affects Estate Agency Fees:
Property Value
The value of your property affects estate agency fees. Higher-value properties often have higher commission rates, but some agents may offer tiered commission rates, which reduce the percentage for properties above a certain value.
Area
Location can also affect fees. Agents may charge more in high-demand areas like London to reflect the market and potential sale price. In areas with low demand, commission rates may be lower.
Market
Market conditions, supply and demand can affect fees. In a busy market with high demand, agents can charge more as there is more competition. In a slow market, agents may be more flexible to get the seller.
Agent Reputation and Experience
Reputable and experienced agents charge more because of their track record. Sellers will pay more for the peace of mind of working with an agent who can handle complex transactions.
Extra Costs and Considerations:
Marketing Costs
Apart from the agency fee, sellers may incur additional costs for marketing and advertising. These include professional photography, virtual tours, floor plans and online listings. Ask your agent what marketing services are included in the fee and if there are any extra costs.
Sole Agency vs Multi-Agency
Sellers can work with one agent (sole agency) or multiple agents (multi-agency). Sole agency agreements have lower fees as the seller agrees to list the property exclusively with one agent. Multi-agency agreements have higher fees as the seller pays commission to multiple agents regardless of who sells the property.
Negotiating Fees
Sellers can negotiate fees with their chosen agent. Consider the level of service, the expected sale price and the agent’s track record during negotiations. Discuss fees and terms upfront to get clarity and avoid any surprises later.
Summary:
Estate agency fees are a fact of life for anyone involved in property sales in the UK. Now that you know the different types of fees, what affects the costs, and the extra considerations, you can make informed decisions and negotiate. Whether you’re a first-time buyer, landlord or selling your home, this knowledge will help you manage costs and get the best outcome.
Selling
Should You Be There? Navigating viewings as a Seller
Should Sellers Be Present During Property Viewings? Pros and Cons Explained
Selling your home is a big deal and involves many questions and decisions. One of the biggest is whether the seller should be there during open inspections. It seems logical to be there to show off your home’s best features, but there are pros and cons to consider. This blog will go through the advantages and disadvantages so you can make an informed decision.
Advantages :
Personal Connection:
One of the most significant benefits of being there is establishing a personal connection with potential buyers. Sharing your stories and experiences about the property can give it a unique charm and make the house feel like a home to the buyers. This personal touch can often be the deciding factor for a buyer.
Details:
As the owner of the property, you are the expert. You can provide detailed and instant answers to buyers’ questions. From the history of renovations to information about the neighbourhood and local amenities, you can fill in the gaps the agent may need to learn.
Features:
You can personally highlight the property’s best features and improvements. Whether it’s the energy-efficient upgrades, the view from the living room or the recent kitchen renovation, showing these off personally can significantly impact buyers.
Disadvantages:
Pressure:
One of the most significant disadvantages of being there is creating pressure on the buyers. They may feel uncomfortable or rushed if they are being watched or monitored. This can stop them from properly inspecting the property and discussing it with their partner or agent.
Professionalism:
Estate agents are trained to handle open inspections professionally and can show the property in its best light without the emotional attachment a homeowner may have. They can also gauge the buyer’s interest and answer questions objectively, which can be more effective in a sales environment.
Less Transparency:
Buyers may not ask critical or potentially negative questions in front of the vendor for fear of offending. This can leave doubts unresolved and impact their decision-making. They may feel more comfortable asking questions of the estate agent instead.
Finding a Balance
Initial Meet and Greet:
To find a balance, you could be present for the initial meet and greet and then leave the buyers to inspect the property independently. This way, you can provide personal insights and highlight the best features without hovering over the buyers. It creates a warm and welcoming atmosphere while giving the buyers time to form opinions.
Available for Questions:
Even if you’re not there for the open inspection, consider being available by phone for any immediate questions the agent can’t answer. This way, buyers can get the information they need without feeling pressured or rushed.
Go with the Expert:
In the end, it may be best to use the expertise of your estate agent. They can conduct the open inspection professionally and objectively and show the property in its best light. Trust their judgment, and it will often lead to a better sale.
Conclusion :
Whether or not a vendor should be at an open inspection depends on many factors, including the buyer’s comfort level and the seller’s ability to be professional. Being there can provide personal insights and details and create pressure and discomfort for the buyers.
Both ways may be the answer. Step back after the initial meet and greet to give the buyers the space to feel comfortable and inspect the property thoroughly.
This balanced approach will create a positive viewing experience and increase the chances of a sale.
Talk to your estate agent if you’re still unsure what to do. They will have experience and knowledge to guide you on what’s best for your situation. Remember, the goal is to create an environment where the buyer can see themselves living in the property, and then the sale will be smooth and easy.
Probates
Probate Guide: How to Manage Estate Distribution With or Without a Will
Navigating the Nuances of Probate in the UK
Understanding Probates- UK 2024
Losing a loved one is hard enough without the added stress of sorting out their estate. If you are dealing with probate in the UK, it’s essential to understand the process, responsibilities and steps involved. This guide will take you through the probate process and give you all the information you need to manage it.
What is Probate?
Probate is the legal process of managing the estate of a deceased person. It ensures their debts are paid, and assets are distributed according to their will or the law if there is no will (intestate). An executor named in the will handles probate if there is a will. An administrator is appointed to manage the estate if there is no will.
What to Do When Dealing with Probate:
Register the Death
The first step is to register the death within five days in England, Wales, and Northern Ireland or eight days in Scotland. You’ll need a medical certificate showing the cause of death and should get several copies of the death certificate for future use.
Find the Will
If the deceased left a will, find it as it names the executor to manage the estate. The will says how the deceased wanted their estate to be distributed. Without a will, the estate will be distributed according to intestacy rules.
Apply for a Grant of Probate or Letters of Administration
To get the legal authority to deal with the estate, you need to apply for a grant of probate (if there’s a will) or letters of administration (if there’s no will). This application is made to the Probate Registry. You will need to fill in the following forms:
– PA1P (if there’s a will) or PA1A (if there’s no will): Application forms for probate or letters of administration.
– IHT205 or IHT400: Inheritance Tax forms depending on the value and complexity of the estate.
Value the Estate:
It would help if you valued the estate, including all assets such as property, bank accounts, investments and personal belongings. You also need to identify any debts and liabilities. This step is essential for calculating any inheritance tax due.
Pay Inheritance Tax:
Inheritance Tax (IHT) must be paid if the estate is worth more than the current threshold (£325,000 as of 2023). IHT must be paid within six months of the person’s death; otherwise, interest will be charged. You can pay IHT from the estate’s funds, or you may need to arrange a loan if the estate is poor in cash.
Apply for Probate:
Once you’ve completed the paperwork and paid any inheritance tax due, you can submit your application for probate to the Probate Registry. You’ll need to send:
– The completed PA1P or PA1A form.
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- – The deceased’s original will and any codicils (if applicable).
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- – The death certificate.
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- – The fee (currently £273 as of 2023, but check for updates).
- – Administer the Estate
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- – Collecting Assets: Get all the assets of the deceased.
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- – Paying Debts: Pay off any outstanding debts and liabilities.
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- – Distributing the Estate: Distribute the remaining estate according to the will or the intestacy rules.
- Record Keeping:
Keep a record of all transactions and decisions made during the probate process. This includes copies of correspondence, receipts and details of how you distributed the estate. Record keeping is essential for transparency and accountability.
Probate Problems
Disputes can arise among beneficiaries over the distribution of the estate. Mediation can often resolve these disputes without going to court.
Missing Assets
Assets can go missing. Thorough searches and professional help may be required to find all assets.
Complex Estates
Large or complex estates, especially those with foreign assets or business interests, can complicate the probate process. Professional advice from solicitors or accountants may be needed.
Insolvent Estates
If the deceased’s debts exceed the estate’s value, the estate is insolvent. In these cases, you need to seek legal advice on how to proceed to ensure debts are paid in the correct order.
Professional Help
Probate can be a daunting task, especially when you’re grieving. Professional help from probate solicitors or estate administration services can make it easier.
They can assist with:
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- – Filing Applications: Completing all forms and documents correctly.
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- – Valuing the Estate: Valuing assets.
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- – Handling Disputes: Mediation services to resolve beneficiary disputes.
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- – Managing Complex Estates: Navigating estates with foreign assets or business interests.
More Probate Tips:
Inform Beneficiaries
Keep beneficiaries updated on the probate process. Regular updates will prevent misunderstandings and disputes.
Secure the Deceased’s Property
Make sure the deceased’s property is secure and insured. This will prevent issues like theft or damage.
Stay on Top of Things
Use checklists and calendars to keep track of deadlines and tasks. Staying on top of things will ensure you don’t miss any critical steps in the probate process.
Why Understand Probate Laws
Knowing UK probate laws will make the process easier. Every case is different, and understanding the legal requirements will help you avoid common mistakes.
Summary
Probate can be challenging, but you can do it with the right knowledge and support. Each step, from registering the death to distributing assets, is essential to ensure the deceased’s wishes are respected and the estate is managed correctly.
If you’re feeling overwhelmed, get professional help to guide you. At the end of the day, managing probate with care and attention will give you peace of mind during a difficult time.
Contact us today for more information or to speak to one of our experts.
