How to: Go from offer to completion

There is, as the saying goes, 'many a slip 'twixt cup and lip' and just because you put in an offer on a property, it doesn't necessarily follow that the path to completion will be completely smooth

You've worked out your budgets, targeted your area of choice and done your homework on the local amenities. After much searching, you've found the place of your dreams. You may feel exhausted and relieved - but now comes the tricky bit - steering the deal through from offer to completion of contract when the keys of your new home are placed in your trembling hands.

Making your offer

Make your offer to the vendor, in writing, via the estate agent and ask the vendor to accept it, in writing, in a letter or email sent direct to you or your solicitor if you have already engaged one. Make it clear that your offer is subject to valuation and mortgage offer. Once they have agreed the price, ask the vendor to instruct the estate agent to take the property off the market. Vendors will usually do this if you have offered the asking price but are not obliged to by law and, in a buoyant market, they may be hoping for a better offer which will gazump yours. You can make your offer conditional on them withdrawing the property for sale, but again, the vendor may give you a time line of one month before they put the house back on the market. Experienced vendors know that not all buyers or their solicitors are efficient and they do not want to be waiting six months later for you to get your paperwork and mortgage offer together. After a month, they can see your level of commitment to pushing the deal through and will most likely keep the property off the market. It is possible to put down a small deposit to 'hold' the property to avoid competitive bids, while you apply for a mortgage. Acording to the agreement you draw up, the amount can be wholly or partly refunded if you cannot get a mortgage offer in a specified time.

Waiting for the valuation and survey

Keep a document wallet with all your relevant paperwork to hand so that nothing goes missing at any time. When you apply to a building society for a mortgage on the property they will need to send a surveyor to ensure that your chosen property is in good order and, based on an assessment of the property's value, worthy of their loan. A common mistake that FTBs make is to offer the asking price when they see a home that they can afford and that seems ideal. It is wise to never show the vendor how much you like the property as this gives them a psychological advantage. If they know you have fallen in love with their home, they are not motivated to drop the price, thinking that you will do your utmost to meet it. If the surveyor's valuation says that the property is not worth what you proposed to pay for it, the mortgage company will not loan the money. Many vendors withdraw property from the market when this happens in order to reassess their options. They may have been persuaded to put the home up for sale by greedy estate agents who have overvalued it in order to get their business. Part of your research should be to find out what similar or identical properties sold for in the same street. You can do this by checking the land registry online: such information is a public record. If the property is old, or needs repair, it is wise to engage your own surveyor to look inside the home in detail for damp, dry rot, roof or subsidence problems to gauge how much of your budget will need to be spent on immediate repairs. Here you can re-negotiate the price if the buyer will not make the repairs themselves.

After the survey

Once you have a solid offer from a lender and you know exactly what your mortgage outgoings will be, if you have not already done so, engage a solicitor or conveyancing agent to co-ordinate the deal. Conveyancing fees vary between £650-£1200 depending on the area in the UK and whether the property is brand new or old. Local authority searches are necessary to ensure that your utility supplies are correct and accounted for and that there are no major polluted sites or proposed road works planned through your area which may devalue the property. This entire process has been speeded up by the introduction of the Home Information Pack document which the vendor must provide before selling, documenting these searches. It is paid for by the vendor. Your agent will also liaise with your vendor's solicitor to ascertain what fixtures and fittings are being left as part of the price and the vendor must sign to verify this is so. Some wily vendors remove the light bulbs, curtains and the toilet roll holders as well as the fridge and washing machine, leaving your apartment bare.

The solicitor will also ask if there are any guarantees or warrantees on items such as the boiler, damp coursing work, roof repairs etc. Make sure you visit the property more than twice to fully understand what is required. Do not be put off by a vendor saying they are unavailable for site visits; insist that the agent takes you round as many times as you will need.

Once the HIP document is verified and any other searches are done

This is a time of waiting and worrying as many a deal has fallen through at this stage. Constantly phoning your conveyancer will keep them on their toes and allow you to monitor the deal's progress. Your vendor may also be trying to buy at the same time as they sell and this will add pressure as you become part of a chain. Chain collapse saw over 40% of all deals fall through between 2001 and 2006. When deals collapse, you are still liable to pay for solicitors, some administration fees, search fees and any surveyor you may have engaged. There is no law in England which says the buyer, having agreed a price, must continue to completion. A buyer may withdraw a house for sale at any time up to exchange of contracts without incurring a penalty or may up the price.

Exchanging the contract

Finally, the big day! To exchange you will need to have a 10% deposit in place from your lender. This is released to your solicitor who will send it by secure transaction to your vendor's solicitor whereupon you will be liable to forfeit the monies if you cannot complete the transaction in the specified time - usually two weeks.

From the moment you sign this document you are legally bound to buy the property and the vendor is bound to sell it to you. A change of mind can result in lost deposits or fines. Now comes the real nail-biting. The snags that worried you may have been ironed out but often the vendor will not let you back into the house until the completion of contract. Agents like to keep vendor and buyer separate in case they do deals behind agents' backs and cut out the agent altogether. You now have to sign an agreement with an agent not to do this but it is advisable, once your 10% has secured the property, to be able to telephone the vendor directly in case there are further questions you may have. Insist on direct contact. You may need to discuss details such as keys to garden sheds, communal post boxes, water stopcock positions etc. You will not be able to access the vendor if they have sold up and gone to Australia for example, so prepare a list of questions starting in the loft and working through to the basement. Where are the gas mains? When is the rubbish collected? Are there any ongoing disputes about fences or overhanging trees?

If there is a serious illness to either party, this can delay or postpone the completion and standard contracts will have clauses to cover such an eventuality. Read the small print in every document. If you find these details confusing or difficult, have someone read the document out aloud to you and take notes where necessary with any queries.

Completion day!

The final phone call comes through that you are the proud legal owner of your new home (subject to you keeping up the mortgage payments of course!).The agent will give you the keys so whatever you do, make sure you have a hook from which to hang them while unloading your goods. Many a completion day has been marred by new owners losing the keys to their new castle.

Now you're in, the most important decision, after you've glugged back that glass of Champagne, is what colour to paint the bedroom. That's when the real difficulties arise. He wants blue, you want lilac; he likes grey, you favour pink. Why didn't you think to discuss this before moving? The entire house-buying process now seems easier than agreeing on Chinese white versus honey beige!