Tips For Finding Bargain Properties
Everybody loves a bargain and getting one when buying a house can be one of the most satisfying feelings in the world, especially in today’s economic climate. There are a few simple things you can do to ensure you are getting your property for the best possible price.
Know your Mortgages
The most common way of buying a property is by getting a mortgage. Most people who do not have the money to buy a house outright will need a loan to help them. Be careful, however, before you commit to anything, as if you do not make the right decision here, you can risk losing your home.
There are plenty of handy mortgage guides out there to help you get a better understanding of how mortgages work. You can get a detailed, step-by-step guide for everything you need to know for free on the internet, so do try and get your hands on one of these before you start.
Make Time to Find the Best Deal
Mortgages come at all different rates and with all offers/add-ons attached. It can seem a daunting task at first, but there are plenty of websites and companies out there who can help you. Rental Yield can help establish the long term profitability of a home and weather the mortgage you are being offered is good value for money. If you are unsure of the meaning of 'rental Yield, see our summary here.
Mortgage Brokers are available to help inform you what the best rates are at the time, and their job is to find you the best price possible for your individual circumstances. You can often get this service for free too, so it is well worth taking advantage of.
Do your Own Research
Although brokers and comparison websites can help you to find the good deals on offer, it is important you carry out your own research too. Brokers can miss deals, and some aren’t available on comparison sites.
Don’t Overlook Costs
There are lots of unexpected costs that come along with buying a house. Set aside a budget for things like: mortgage arrangement fees, valuation fees, legal fees, stamp duty on your house, surveys, renovations and repairs. Putting money aside as early as possible is the best way to make sure you don’t get stung. But don’t overlook the fact that what you set aside may not always be enough to cover extra costs in the long run... something almost always comes up.
Look Everywhere!
Look on each estate agent’s website yourself, rather than clicking what your search engine brings up. This way you can assess their individual fees too.
Look on unlikely websites too. Places like eBay, Craigslist, Freecycle and Gumtree - they all offer listings and deals in your local area and surrounding areas.
Don’t forget that house auctions are always a possibility, and are growing in popularity. Somebody may want a quick sale and you may get a good deal. Make sure you find out everything you can about the property before you bid and don't pay and deposits up front.
A final option for finding a bargain property is picking up distressed or previously repossessed homes. These can often go for up to 30% off the market price. Just remember you will need to be able to commit time, hard work and money to restore such houses.
Sophie works alongside several agencies who specialise in shared ownership and auction properties. She loves to write about property buying and development.