If You Could Reform House Buying / Selling...

[Smokeahontas]

What would you change?

I like part of the Scottish system where the survey is done up front by the seller. I’d also find a way to make the buying process a bit more solid (subject to survey). No gazumping / pulling out for no reason / generally mucking people about.

What I want to know is why the English system is the way it is? Why do we put up with a system where a buyer or seller can pull out at the very last minute costing the person affected thousands of pounds? We all see how it works in other countries why is this archaic system not being reformed?

Yes Porridge in other countries you can get bridging finance because if the certainty of the buying and selling process yet here it’s virtually unheard of and extremely expensive.

@ZaraCarmichaelshighheels not excusing it, but probably ‘it works for most people’. Even if it is imperfect.

On the question of changing it, I think a mortgage agreement in principle but a more in depth one might be better. I wonder how many people offer on a property when no lender would touch them with a barge pole, or they’ve simply overestimated how much they can borrow.

Then surely if it works for most people there is no need for change and renders this thread a bit pointless!

It’s very expensive when it doesn’t - which is what prompted my question, I guess

I like the idea of the small deposit (£1,000 - £5,000) suggested. While some purchasers may not care to lose it, it would probably make some others think harder before pulling out of a sale.

Sellers could also provide a commitment fee of the same amount, which would be returned to them on completion (or they lose it if they pull out). Would most likely stop a few people from putting their property up for sale "just to test the market". They wouldn't lose the commitment fee if the offers they were received were less than asking, but they would have to sell if they did (or lose the commitment fee).

Some searches are going to be the same result every time - why do they have to be redone? If you house wasn't on a mineshaft before it won't suddenly be on one now etc. These searches should be readily available without delay.

I like the sound of the deposit and the cooling off period. It would stop the constant fear of it falling through until exchange.

I do think that an AIP isn't enough. You have to then offer and go through it all in further detail after that to get the money. Why can't they tell you how much you can borrow and the max cost of a property with all the proper checks first then you can be sure the person offering is good for it. The amount of friends I have who have been burned by people pulling out because they couldn't get the mortgage in the end!

Stamp duty - I know it's a holiday now but wtf is it for? Money for the treasury for them doing NOTHING. It's unfair.

@Changingwiththetimes Now this will not be popular: require agents to get a license, are regulated and earn a better commission. Then have all properties available for all agents to view, and they split the commission with the listing agents.

This is the case in Canada and the US - realtors have to take the months-long course and an exam, and then apply for a licence. They do get a much larger commission than in the UK I believe (6%) but they do a great deal more, and are much more accountable. I also prefer our system here because each side has an agent working for them - the buyer never has to pay anything as their realtor splits the commission with the selling realtor, but buyers still get a full-service agent looking out for their interests.

I should note though that many here feel the 6% commission is far too much, and lower-cost brokerages are opening up, some with flat fees.

NZ system - if you offer, you better mean it, as it's binding on acceptance.

You can (and most do) make the offer conditional on any number of conditions, most often finance (mortgage - actual best efforts required), survey (still not an out unless terrible and unable to be rectified e.g. undisclosed leaky building) and occasionally due diligence.

Very few offers collapse because some feckless person changed their mind, so few in fact that any court cases are unusual enough to make the news.

@chocolateoranges33

I'm not sure the sellers having a survey done when they put it up for sale as a positive. I really wouldn't trust it to be independent and not be completed by the sellers family friend etc to benefit the seller. I think that's why the earlier idea of a sellers report wasn't put through as most people would still want their own done.

I think the searches should be completed and returned within a shorter time frame and all parties commiting to a moving date at the beginning of the process would be much more helpful.

In Scotland the sellers have to get a report done by chartered surveyors. The style and content is laid down in law.

The surveyors have to say if they are related to the sellers. Most mortgage lenders will also use the same report, so things can move quickly. It’s not unusual for the whole process from viewing to moving in to take less than a month. Typically it’s 6-8 weeks.