Bid on Suitable Properties

Now the game begins, or if you would rather not treat it as a game, now the stress starts. It is helpful to realise at this stage that there's a reason why it's called the "housing market". Property vendors (sellers) want the best price that they can get, whilst sellers would like to pay the lowest price possible. Ultimately, it's helpful to both parties, to agree a reasonable price.

What constitutes a reasonable price, will vary with the location and type of property, the property condition, the number of people interested in the property at any given time, current economic conditions, and the price asked.

Further, the market for property is not static, instead, it changes almost daily. Imagine buyers and sellers as being lined up opposite each other on conveyor belts. New people, and properties are being added to the coveyor belts daily. At the same time, other people and properties are being removed.

If you are a seller, you want the conveyor belt opposite you to be full of people - i.e. lots of buyers in the market. You also want your conveyor belt to have few properties on it - i.e. few sellers. This guarantees plenty of viewings and a probable "bidding war", with prospective purchasers trying to outbid each other to secure your property.

If you are a buyer, you want the opposite - i.e. many sellers, and few buyers. This means that you can place a few low bids on the properties that you like, in the knowlege that one seller will probably cave in, and agree to a bargain price.

Recognising what type of market you are in, is therefore a primary consideration. Bear in mind that the micro market - i.e. the local market, may be entirely different to the macro market - i.e. a regional or national market.

Also be aware that there may be a temporary uneven-ness in the ratio of buyers to sellers that may quickly pass.

Overall - decide on the price that you are prepared to pay, and try not to deviate from this too much.

For a detailed look at the process of bidding on properties - see my special report. Be warned, if you want to know how to manipulate this process to your advantage, you will find full instructions for doing so. Some of these techniques may not seem fair, in fact, they definately are not fair. However, if you are in a competition to purchase a property, they will help you to win it.

Have an offer accepted 

Simple enough, if your offer is the highest, it should be accepted. One frustration that you may encounter here, is the seller, who insists on continuing to market the property after accepting your offer. This is quite common, and requires little effort on the sellers part, other than telling the estate agent, that they want to do so. Whilst the techniques that I reveal in my report, definately give the purchaser an advantage, this manouver definately favours the seller. All is not fair in Love, War, and Property transactions - you have been warned.

Complete a Mortgage Application

Time is now, not on your side. The Estate Agent, if they are on the ball, will almost immediately want to know who your lender is, and who your solicitor is. They want the sale to progress swiftly and smoothly to completion, so will gently pressure you to get things moving. From your point of view, you would be wise, generally to move quickly too. If you have had the foresight to discuss your situation with a mortgage broker, and have obtained an agreement in principle, it's now simply a matter of meeting your broker to complete the paperwork. From there on in, the broker should take care of things. If not, you're going to have to start the process of obtaining a suitable mortgage now.

Obtain a Mortgage Offer 

Completing a mortgage application, even after obtaining a decision in principle, does not guarantee that you'll get a mortgage offer from the lender. Many difficulties can interupt the process. Most commonly, these would include: problems with the valuation, inability to provide the supporting documentation required by the lender, discrepencies between the information supplied on the application form, and the documentation that you provide, inability to PROVE ID, or address.

Common examples are: the property is valued by the valuer at less than the price offered, no wage slips or P60 available, accounts not finished, thinking that your "salary" includes overtime and/or bonuses/car allowance, driving licence still shows old address, no passport.

Appoint a solicitor  

In reality, you should have done this before completing your mortgage application, in fact, you will not be able to complete your mortgage application, without knowing your solicitors details. In practice, you will have little contact with your solicitor, until the lender sends her a copy of your mortgage offer. Even then, unless you instructed the solicitor to apply for the "local searches" straight away (a speculative move which involves cost, before a mortgage offer has been obtained), a few more weeks will pass before your solicitor requires your prescence.

Exchange contracts   

When both your solicitor, and the vendors solicitor have completed all of the legal work, you are ready to "exchange contracts". This involves you agreeing to purchase the property, as defined in the legal paperwork, for a set sum of money. The vendor, in turn agrees to sell you the property, similarly defined. A date is agreed for completion