How to Make the Most Out of Your Property Viewings

How to Get Most Out of Property Viewings









1

---

Table of Contents










PAGE
Introduction ................................................................................. 3

Section 1: Top 5 Important Questions Most People Forget
to Ask

What are the vendors doing? ....................................................................... 5
Is there already a chain? How long is it? .................................................. 7
Why are they moving? ................................................................................... 9
How long have the vendors been here? .................................................... 10
Will they take an offer? .................................................................................. 10

Section 2: Avoid the 3 Common Mistakes Most People
Make with Viewings

Make your own personal checklist when viewing property ................... 13
Do your research .............................................................................................. 14
Ask the right questions .................................................................................. 16

Section 3: What Vendors Should do to Prepare for Viewing

Rule # 1: Tidy Up ............................................................................................ 21
Rule # 2: Let the buyers go through the property on their own ......... 26
Rule # 3: Don't Ask Too Many Questions ................................................. 27




2

---

Introduction

Whether you're buying or selling a home, making the most of your
property viewings is essential to you being able to make your next property
move successfully.

So many property sales collapse because of information that crops up
later down the line once you've gone to the time and expense of arranging
surveys, solicitors and removals.

We've written this guide to help you whether you're a buying or selling. If
you're selling it's worth reading the helpful advice we give to buyers because
it will help you anticipate questions you might get asked about your home so
that you're not caught off-guard.

If you're buying there are a few key questions you need to ask when
viewing properties to make sure you find out what you need to know to
make a decision and negotiate a good deal.

Section 1: Important Questions Most People Forget to Ask

Sophie White is a woman in a hurry. At least she was on the day in
April when she spent 167,000 in 15 minutes, buying a one-bedroom
apartment.

"It was the first and only place I saw. I'd spotted it on the web and
didn't think I was in a rush to move. In theory this was to have been the
first of many visits to properties over the coming months. But when I saw it,
I knew it was very special," says Sophie.
3

---

Sophie is not so unusual. A research study by Santander shows that
the average time a buyer spends viewing homes before putting in an offer is
just 96 minutes, 43 minutes less than people typically spend deciding where
to go on holiday or what computer to buy.

As a result, it says, 49 per cent of house buyers then experience a
problem - anything from noisy neighbours to showers malfunctioning
because of low water pressure - which could have been avoided had they
spent more time researching the property.

When you find a property that you are initially interested in, contact
the Estate Agent to arrange a time for the viewing. It is wise to see as many
properties as possible in order to get an impression of what is on the
market.

Aside from taking notes, visiting the property on several occasions at
night or day, rush hour or not, or taking photos, it is always a good idea to
ask the seller questions that will help you make a sound decision whether to
purchase or not.

4

---

Nobody is in a better position to tell you about the property than the
current owner, as usually they are the previous residents. Use the viewing
as an opportunity to chat with the owner and find out anything you would
like to know about the property or the area.

As you'd probably have a checklist of questions, and according to
research, here are top 5 questions most people forget to ask when checking
out a property.

1. What are the vendors doing?

There is one phrase guaranteed to strike fear into the heart of anyone
trying to sell a house: the broken chain.

Put simply, a chain is a line of buyers and sellers involved
simultaneously in property transactions that are linked to each other. If one
transaction falls through or is delayed, the chain breaks and the effects are
felt up and down the line.

For example, if you are waiting for a buyer to complete the purchase
of your house before you complete the purchase of your new house, and
your buyer pulls out, you may have to pull out, which could cause problems
for the vendor of your new property. And so on. The result is a grim mix of
financial and psychological angst.

It's a common problem. Government figures estimate one in three
property transactions in England and Wales falls through, while a survey for
trade event the Homebuyer's Show found that 36% of people feared getting
stuck in a chain more than any other aspect of moving house. It's an
5

---

expensive problem too, given that the surveyor, estate agent and legal fees
involved in buying property are often non-refundable.

What breaks a chain?

Snarl-ups can happen for a variety of reasons.

Most deals fail because of tight deadlines for paperwork being missed
or finance falling through at the last minute.
The buyer can simply withdraw his or her offer. Until contracts are
exchanged, the buyer is under no legal obligation to buy the home and
does not have to pay for any of the costs that you as the seller may
have incurred.
Another common reason is that the survey - currently undertaken late
on in the process - reveals some previously unknown problem with the
property.
The gazunderer is back. Gazundering occurs where a potential buyer
reduces their offer at the very last minute before contracts are
exchanged.


6

---

The National Association of Estate Agents has warned that this
phenomenon is rising as the UK housing market cools. Increased knowledge
of property prices and a glut of properties for sale means buyers are more
frequently springing a nasty shock on sellers and risking a lower offer.

Ironically, gazundering by first-time buyers whose ace card is that
they have no chain behind them is also contributing to the increase. It is not
illegal but it's unethical.

If this happens before contracts are exchanged it is up to the seller to
decide whether or not to accept the lower offer. Once contracts have been
exchanged the buyer is legally committed to paying the price stated in the
contract. They can still pull out, but will forfeit the 10% deposit they paid
when contracts were exchanged and may be liable to pay costs.

The seller may accept an offer for their house and then inform the
buyer that they have been offered a higher price by someone else.
This is known as 'gazumping'.

There may be a delay in the lender making a formal mortgage offer to
the buyer. Until the mortgage offer is made, contracts cannot be
exchanged.

2. If there is already a chain, how long is it?

Since people like to have a home to move into before they sell their
previous house, a 'chain' can develop, of people waiting for other sales to be
finalised before they finalise theirs. The longer the chain, the longer this
7

---

process will take to be resolved and the higher the chance of someone
pulling out.

This is where the hard work starts, and the longer it takes to reach
exchange of contracts, the higher the chances of the deal falling out of bed
or of the buyer gazundering (i.e. dropping their price). So keep in weekly
contact with your solicitor and agent to ensure that channels of
communication stay open.

You need to be kept informed of where the conveyancing is at, and
how your buyer is feeling about the progress of the transaction - you need to
know whether they are still highly motivated, or off looking at other things
to keep their options open.

How can I avoid getting caught in a chain

There are a number of steps you can take to minimise the risk.

Avoid chains in the first place. Find out the status of potential buyers
and decline their offer if they are stuck in a chain. Find out the status
of the people you are buying from too as chains can break either way.
Make sure you have all your finance in place. To avoid becoming the
weakest link yourself, have your mortgage offer in place before you
start making offers.
If necessary, arrange for a bridging loan. This is a short-term loan
which covers any financial shortfall and smooths the process. It can
usually be arranged very quickly and will typically charge interest of
1.5%-2% a month.
8

---

This can provide the means to allow you to buy a new property before
you have actually sold your existing one. It is an expensive way of
borrowing money however, especially if you don't know exactly when
you'll be paying it back.
It is standard procedure to ask to see the necessary paperwork for the
buyer below you in the chain to rule out any chance of a chain break.
On a more basic level, sellers should do all they can to make their
home an attractive proposition to potential buyers. The property
should be spotlessly clean and tidy. Any redecoration required should
be done. For more information, read our guide to selling your home.
Be prepared to lower your asking price. Most property is sold within
three months of being put on the market. If your home is still for sale
after this period, your asking price may have fallen out of line with
local levels. Check the prices of as many comparable properties as you
can and adjust accordingly.



3. Why are they moving?


You'll want to know that the family isn't moving just to get away from
the house - for example, because of nightmare neighbours', a late-night
9

---

flight-path or because the building is about to collapse. But remember to ask
yourself whether the reason they give seems plausible.

A home is a haven and for anyone to leave it without some logical
explanation should put you on guard. It's never wrong to get that
information so that you won't get any unwanted surprises for you and your
family.

4. How long have the vendors been here?

The longer the better - anyone jumping ship after less than a year
should have a very good reason. If they took a week of living in the place to
discover that everything in the kitchen is in the wrong place, and that it's far
too far to the bathroom late at night, you don't want to make the same
mistake.
5. Will they take an offer?


As the buyer it's important to find out the vendor's position as this will
affect whether they'll take an offer on the property below the asking price.

Knowing the vendor's position can give you a real advantage especially
if you can offer a quick completion, cash purchase or not being in a chain.
10

---