What Is The Best Way To Buy A House?
Written by Martha Lott
1st Apr 2020 (Last updated on 20th May 2020) 5 minute read
There are many different ways to buy a house with no one method that suits everyone. The most popular way to but a house is known as ‘private treaty’, where a house goes for sale on the open market with an asking price that’s usually negotiable.
Compare My Move work with the best property experts in the game to help keep you informed throughout the buying process. This guide will explain in detail the many ways to buy a house. From buying a house at auction to using a Shared Ownership scheme, we cover it all.
1. Buying A House Through Private Treaty
Buying property via private treaty is the most common method of purchasing a house. Private treaty is when a property is put up for sale through an estate agent who will market the house at a negotiable price.
You’ll need a conveyancer to help you with the legal side of the transaction, so when you’re ready to make an offer on the house, make sure you compare conveyancing quotes to ensure you’re getting the best deal.
Buyers will put in their offer through an estate agent, whether it’s below the asking price or the set market price, allowing the seller to negotiate the offer with the help of their estate agent. At this stage, you should have your mortgage in principle in place, too.
2. Buying A House At Auction
Buying a house at auction is a popular method for experienced buyers and isn’t recommended for first-time buyers. It’s a common way to buy non-traditional and unusual properties, so it’s a popular method among landlords looking for an affordable project.
Buying and selling at auction is becoming increasingly popular, with Auction House recording a record year for sales in 2019. They sold more than 3,800 lots throughout the UK last year, an increase success rate of 77.3% from the previous year.
When you buy a house at auction, you will avoid being part of a property chain, which usually slows the buying process down. In recent years, auctions have become popular among many buyers as the sale of the house is agreed on the day, avoiding the chance of being gazumped.
Whilst buying a house at auction is typically the quickest method to buy a house, it’s important to note that you’ll still need to get a property survey done to highlight any issues with the house before you commit to buying it. Remember to factor in your property survey costs to your moving house budget.
3. Buying A House With a Help To Buy ISA
One of the best options for first time home buyers is to use help from a government scheme. Although the scheme is now closed, those with a Help To Buy ISA open can still take advantage of the 25% government bonus until 1st December 2030.
This Help To Buy scheme allows first-time buyers to save up to £200 a month towards their first home. The government will top up your savings by up to £3,000, with the minimum bonus you can receive being £400.
4. Buying A House With Shared Ownership
The Help to Buy: Shared Ownership scheme is another government scheme that is ideal for people struggling to afford to buy their first home. You must not already own a home and have a household income of less than £80,000 a year to be eligible for the scheme, or below £90,000 if you live in London.
The scheme allows you to purchase a share of your home, whilst paying a discounted rate on the remaining rent. You’ll have the option to purchase a bigger share of your house at a later date. Helping you save money, the scheme accepts mortgage deposits at a minimum of 5% of your share of the property.
There is also the option of a shared equity loan where you pay a small deposit and use an equity loan to top it up. To find out which is best for you, you can read our article debating shared ownership vs shared equity for more information.
5. Buying A House Using Right-to-Buy
Using the Right to Buy scheme is an ideal option for first-time buyers to get on the property ladder. Right to Buy is a government scheme to help council tenants buy their home for a discounted price. The discounted amount is up to £80,900, or £108,000 if you live in London.
Similar to Right-to-Buy, the Rent to Buy scheme also help council tenants buy their first home by offering more affordable rent. The idea is to use the money saved on discounted rent towards your house deposit.
6. Building Your Own House
Whilst this option is not suitable for everyone, you can build your own house as a way to get on the property ladder. To build your own house, you’ll need to purchase land and gain planning permission as well as paying for fixtures, fittings and materials. If you plan and budget carefully, building your own home could work out more affordable than buying a property via an estate agent or developer.
Building your own home will give you more freedom to create your dream home, more affordable Stamp Duty charges and the option to reclaim VAT for your labour costs. However, the process of building your own house will take significantly longer than the traditional way of buying a house, so remember to factor in a longer timescale when weighing up your options.
7. Buying A House With Another Person
Buying a house with someone else is a great way to buy your first home. Whether it’s your partner, a friend or family member, purchasing a house with another person is an easy way to save on the cost of buying a house.
There are joint mortgages available to help with buying a house with a friend or partner. The two types of joint mortgage are:
The joint tenants option is more suited for married couples or long-term partners. It allows you both to have equal rights to the property and if one person dies, the other will automatically inherit the property.
Tenants in common:
The tenants in common option is suitable for buying a house with friends or family and means each of you will own a different share of the house. You can choose who you leave your share of the property to, as well.
Save When Moving House With Compare My Move
When you’ve decided on the best option to buy a house, make sure you compare your solicitor fees, property survey costs and removal costs with Compare My Move. We have a network of verified and trusted conveyances, property surveyors and removal companies all across the UK to help with your house move.