The three mistakes every home buyer should avoid
Thinking you can’t afford to buy
These days, despite how it might seem sometimes, buying the home of your dreams is actually easier than ever before.
Even those who thought that buying the home they want was simply out of their reach are now enjoying a new lifestyle in their very own new home.
Buying a home is one of the smartest financial decisions you will ever make. In fact, most homeowners would potentially be financially broke at retirement age if it weren’t for one saving grace - the equity in their home. Furthermore, mortgage rates are lower and more flexible today than ever.
Property values have continued to rise steadily, of course with the odd sticky patch and the expected peaks and troughs, but the long-term trend is a consistent increase. This means that each month when you make a mortgage payment, the amount you owe on your home is decreasing and the value of your home will typically be increasing.
This ‘owe less-worth more’ situation is called increased equity and is the reason you should try and get on the property ladder as soon as possible.
Trying to sell your home without an estate agent
Buying property is a complex and often stressful task. In fact, it is usually the biggest single investment you will make in your lifetime. Compliance, laws, complex procedures and competition require estate agents to
perform at a high level of professionalism, particularly when dealing with conveyancers and solicitors and it’s important that the correct procedure is followed and the correct decisions are made every step of the way.
Making the wrong decision could end up costing you thousands of pounds which is why it makes absolute sense to instruct an estate agent who is reputable within your local area, is available for you to meet and who looks out for your best interests.
Not instructing the appropriate level of survey
Buying a home is likely to be the most expensive purchase you will ever make, yet the average property viewing lasts just 25 minutes. In addition, once an offer has been made, it’s tempting to scrimp on the survey if budgets are tight – but this is no time to be looking for cheap options.
The cost of a survey is very small in relation to the cost of sorting out an underlying problem just weeks after you move in! As a home buyer, you will have been crunching the numbers, negotiating offers, adding up your costs, shopping for mortgages and trying to get the best deals for months, so please do not stop now.
Unless you are purchasing a new build or a very young property, it’s essential to get a professional survey completed on the property before the exchange of contracts to ensure you are not setting yourself up for a costly surprise later on.
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