What's available
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
There are a number of different ways to find out what properties are on the market. Most people use an estate agent, but it is also possible to find a property through a private sale or a property auction. If you buy through an estate agent or an auction, you may be asked to pay a holding deposit and/or be offered other services such as a mortgage or insurance.
Using an estate agent
Many buyers find out what's available by visiting estate agents in the local high street. You will probably have more choice if you go to an estate agent, but it's important to remember that the agent has a contract with the seller and will always act on her/his behalf. They get a percentage commission from the sale, so they will try to get the highest price possible.
Most estate agents advertise in their shop windows, in local newspapers, and on the internet. It usually helps if you can visit a number of estate agents and ask them to put you on their mailing lists. You shouldn't have to pay for this. Make sure that you explain exactly what you're looking for, or they may ring you up or send you details about every available property, even if it's unsuitable.
In very popular areas, you may need to view properties as soon as they come on the market. It may also be worth phoning round regularly to check if new properties are available. If possible, try to arrange to view several properties in the area on the same day.
Property descriptions
Estate agents' descriptions of properties have to be fairly accurate (it's a legal requirement), but should be treated with caution. They don't have to point out any potential problems, and are designed to make the property as attractive as possible to buyers.
Holding deposits
Buyers don't normally have to pay any fees to the estate agent, but you may be asked to pay a holding deposit if you want the property to be taken off the market. Not all agents do this, so you may want to ask before you view properties a particular agency is selling. Holding deposits can be several hundred pounds. The estate agent normally keeps the deposit from the date you make an offer until the sale is final. You are not legally obliged to buy the property if you pay a holding deposit, but are unlikely to get a refund if you pull out.
Other services estate agents provide
Many estate agents also offer buyers other services, including mortgages. They can't insist that you agree to buy these services through them before they will show you a property or tell the seller about any offer you make. You shouldn't be treated any differently whether you buy any services from the agent or not. If this happens and the estate agent is a member of the National Association of Estate Agents, you can make a complaint.
Private sales
Although most people use an estate agent, some home owners sell their homes privately. Check the property pages of local newspapers to find out if anyone is doing this in the area you're interested in. Some sellers may attach a sign to the property and/or put adverts in shop windows or on the internet. You can also put a 'wanted' advert in local papers or shop windows to attract someone prepared to sell privately.
Property auctions
There are many reasons why a property might be sold 'to the highest bidder' at a property auction. This usually happens if the property:
- is being sold because of debts, bankruptcy or repossession
- belongs to a housing association that no longer needs it
- has been empty for a long time, for example, if the owner has died.
You can find out when auctions are being held by contacting auction houses listed in your local Yellow Pages. There are also a number of websites you can use to search for auctions in your area.
Most auction houses produce a brochure of available properties approximately three weeks before each auction. If you are thinking of bidding for a property, you should arrange to view it first. You can arrange this through the auctioneer, who will either take a deposit for the keys, arrange a group viewing, or arrange for a local estate agent to show you the property.
Auctioned properties may sell for less than their potential value, but major improvements or renovations are often needed. Most properties are empty when the auction goes ahead, so the sale could go through very quickly. If you are selling your previous home, it may be better to wait until you exchange contracts before making a bid. You will need money to pay a deposit (usually around ten per cent of the total price) when your bid is accepted.
Repossessed properties
If you make an offer on a repossessed property, the lender selling the property may insist on publishing a 'notice of offer' in the local papers. This is a formal notice saying that the lender is still willing to accept higher offers from other buyers by a certain date. If a higher offer is made, you will probably lose the property unless you can match it.
If your offer to buy a repossessed property is successful, you may find that you have to pay for essential services to be reconnected and/or for any repairs that are needed.
Debts left by the previous owner
You may also find that creditors looking for the previous owner contact you in person or by post, and you may have problems getting credit yourself. This is because the previous owner's details may appear on credit reference agency records (such as Experian, Equifax, and Callcredit).
If this happens, you can check if the information these organisations hold on you is correct, and find out how to change it if it isn’t. You may want to check all three agencies as they don’t always hold the same information.
You can get a credit report for £2, although sometimes agencies offer free reports. You can order your report online, or ask the agency to send you a copy by post. The agency should send your credit report within seven working days. They should also send you information about how to get corrections or amendments made.
