Confusion among Hornchurch first time buyers could be a costly mistake
The last thing you want when buying a South Ockendon or Aveley home is confusion about the process.
But, sadly, new research suggests this is the case among a good proportion of first-time buyers, with many left ‘extremely confused’ when it comes to the various stages of buying a property, the responsibilities of the professionals involved, and what is expected of them as buyers.
The research, by the home move comparison site reallymoving.com, carried out a survey of 500 people who are planning to purchase their first home in the next three years. Those responding were asked a sequence of questions to which you should know the answers if you’re planning on purchasing a property.
Some 67% of first-time buyers incorrectly identified the surveyor or the estate agent as the one to carry out local searches on a property, such as environmental, water/drainage, and chancel repair liability. This is, in fact, the responsibility of the conveyancer, with only a third (33%) calling this right.
Costs and budgeting are also major factors when buying a home, but the research revealed that first-time buyers could be underprepared or underfunded thanks to misunderstandings over the outlay involved with a property purchase.
Some 36% didn’t realize they bear responsibility for paying for a survey, believing this to be down to the seller, the buyer and seller together, or the mortgage company to cover the bill.
Meanwhile, only 63% said they knew that the buyer pays for a mortgage valuation, HomeBuyer Report or Building Survey.
The true reality of solicitors’ fees, however, will offer first-time buyers a more pleasant surprise, with the majority of respondents massively overestimating how much they will need to shell out on conveyancing. Asked how much fees would be likely to cost on a £250,000 property, nearly 70% (69%) estimated around £1,500 – significantly up on the actual average of £550.
Too much jargon
There is a lot of jargon used in the home-buying process, much of which can prove confusing to the uninitiated. Around 60% of first-time buyers said they planned to secure a mortgage in principle (where a lender agrees to lend based on an initial assessment of a buyer’s circumstances) before putting in an offer on a property, while 55% had a grasp on the true meaning of ‘exchange’.
Some 37% incorrectly believe it’s the date where they collect the keys and move in, when it’s actually only a legally binding contract between seller and buyer for the sale and purchase of a home, with completion happening at a later (pre-agreed) date.
Basic understanding
Unexpected costs and transactions falling through could be both issues for first-time buyers if they don’t properly understand the basic fundamentals of the home-buying process.
Of course, purchasing a home is rarely completely straightforward, and anyone expecting a walk in the park will be left disappointed. However, those that are as well-prepared as possible are likely to be able to deal better with issues or bumps in the road if they do occur. First-time buyers also need to have a good understanding of the roles of the different professionals involved in a house purchase – from agents and surveyors to conveyancers and removals experts – to ensure the process is as smooth as possible.
What’s more, first-time buyers need to know who pays for what and what this is likely to cost to ensure they set a realistic and manageable budget and don’t spend what they don’t have.
If you're a first-time buyer, you need to go into the process fully up to speed and with your eyes wide open to ensure you aren’t faced with any unexpected shocks along the way. Contact us and we can help you understand the process better and explain each stage clearly to you.