Top 10 Mistakes People Make When Buying a Property
Buying a house is one of the biggest financial decisions you will ever make, and it is also where buyers make the most expensive mistakes. First-time buyers feel the pressure most, but seasoned buyers fall into the same traps. Some rush into a purchase because they need to relocate, only to find the area does not suit them. Others skip the survey to save a few hundred pounds, and end up with a repair bill in the thousands.
So what are the most common mistakes to avoid when buying a house, and how do you spot them before they cost you? Below are the 10 we see most often as chartered surveyors, along with the practical things you can do to avoid them. If you would like impartial advice from a RICS Chartered Surveyor, get in touch.
1. Trusting the mortgage lender’s valuation
You must determine whether a home’s asking price is accurate before committing to decades of mortgage repayments. And that means you shouldn’t rely on mortgage valuations, which are purposed to satisfy the needs of the lender rather than the buyer.
If you want to gauge a home’s accurate value, you can start by looking at similar homes in similar areas to see how the prices compare. But remember that homes hiding defects might also come with a sky-high repair bill. The most reliable way to determine a home’s value is to hire an impartial RICS Registered Valuer, who can provide you with a valuation within two days.
2. Failing to budget for all the costs involved
You’ve probably got a budget in mind, but have you considered all the costs involved with buying a property? You need to think about more than just the purchase price. When calculating the total cost of buying a home, you might need to consider fees such as solicitors, removals, Stamp Duty, insurance and renovations. And then, of course, you might have to repair urgent problems.
For help understanding all the costs involved with property ownership, talk to an impartial property expert at Novello Chartered Surveyors. Get a property survey to find out how much any problems might cost to rectify.
3. Settling for the first mortgage offer you receive
You shouldn’t go with the first mortgage offer you receive. After all, you may be repaying your mortgage for several decades. But as well as comparing a range of finance options, you need to get your mortgage approved a long time before making an offer.
First, you need to know how much you can actually borrow. Then, you need to realise that it can take between 18 and 40 days to get approved. Make sure you apply for a mortgage in time to get your home surveyed, work with solicitors and make an offer when you’re happy.
4. Falling in love with a house at first sight
Searching for a new property can be exciting, but it can also be stressful. When tensions run high, you might start losing patience and decide to just go for the property of your dreams without putting too much thought into it. No home is perfect. You need to find out what’s lurking beneath the surface before making an offer.
Again, the easiest way to tell whether a property will prove practical and a joy to live in is to work with a RICS Chartered Surveyor to examine its condition.
5. Being afraid to negotiate the asking price
Negotiating is a crucial aspect of purchasing a home, yet many people, particularly first-time buyers, feel too afraid to do it. In some cases, people offer a price that’s far too low rather than negotiate. Consequently, some sellers just ignore the offer, meaning buyers miss out on homes they love.
In other cases, property hunters agree to the original asking price without bartering at all, which is also a mistake. It’s always a smart idea to secure a bargaining chip when trying to bring the price of a property down. A survey report which details defects and a cost-estimate for urgent repairs will certainly help you skim a few pounds off a property’s asking price. The right property specialists will negotiate for you.
6. Not researching the area thoroughly before buying
If you’re relocating you might want to consider renting before buying. That way, you can determine which areas you like and look to different areas if your rental home doesn’t meet your expectations.
7. Focusing too much on aesthetics
When viewing a home, try to imagine it as a blank canvas. A property might appear beautiful when it’s full of furniture and decorations, but a lot of that might disappear when you actually move in. So, don’t concentrate on the trinkets inside a home that make it stand out. Remember that sooner or later, you’ll be making this property your own. Instead of focusing purely on the superficial, think about practicality. Always hire a Surveyor to identify defects you would not spot on your own.
8. Relying only on the internet to find a house
Property portals are a useful starting point, but they won’t give you the local knowledge of someone who knows the area inside out. Estate agents can help, though remember they work for the seller and earn commission on the sale price. An impartial property expert works for you, with no stake in which house you buy, so the homes they suggest are based on what suits you rather than what needs selling.
9. Dismissing houses that don’t look right online
If you’re searching for a new property online, you might be put off certain homes for the wrong reasons. Some low-quality or poorly taken images may paint an inaccurate picture of what the house really looks like. You might be pleasantly surprised if you view a home in person that didn’t appear so good on the internet.
Viewing as many properties as possible (within reason) will help you gauge what you can get for your money. And, when you do find that seemingly perfect home, remember to have its condition and value accurately assessed.
10. Skipping the house survey to save money
No matter how beautiful or perfect a property appears, it’s probably hiding defects. Yet many buyers still skip the survey to save a few hundred pounds, only to discover problems after completion when it’s far too late to negotiate.
Property surveys cost from a few hundred pounds. That is a small investment against the cost of buying a house with hidden defects you only discover after completion.
How Novello Chartered Surveyors Can Help
At Novello, we’ve been surveying and valuing homes across England and Wales since 2019. Our team of RICS Chartered Surveyors carries out Level 2 Home Surveys and Level 3 Building Surveys on every type of UK housing stock.
We’ve created a bespoke Level 2 property survey called the HomeLevel Report. It’s the same price as the alternative HomeBuyer Report, which has been the standard and most popular Level 2 survey for over two decades, but goes into more detail and comes with a range of added benefits.
If you’re looking at a home that requires extensive repairs, or if you want to make significant alterations, you might be better off getting a Full Building Survey, the most detailed property survey available.
So, whether you need a survey, valuation or just some general advice, feel free to get in touch with us via phone, chat or email.
