Mistakes That Hike Up Your Home Buying and Selling Costs - Unveiled
Typical mistakes home movers often encounter, as uncovered by industry professionals
Homeownership comes with a hefty price tag - beyond the mortgage, removal costs, and agent fees. Property experts forewarn homeowners of these easily avoidable mistakes that cream off thousands from their final bill. Here's how to dodge them.
Assuming Removals Insurance Coverage
After waving off the moving van, it's common to assume your belongings are insured. While most removal companies have liability insurance, the coverage might be limited to set amounts. If your home insurance doesn't cover removals, consider additional coverage. Premiums are around 10% of removals cost on average[1]. For example, if the total cost is £1500, removals cover would cost £150. Additional insurance offers protection against vandalism, theft, incidents during removal[1], and more[2].
Miscalculating Stuff Owned
Underestimating the amount of stuff you own can result in financial struggles. Home experts advise measuring accurately to ensure you book the right van size. A video survey from removal companies can also prove helpful[2]. Don't forget to secure parking permits for the removal vans at both your old and new homes. Failing to do so might escalate costs due to increased moving time[2].
Skipping a Property Survey
While skimping on a property survey may save a few hundred pounds, only 68% of homeowners claim they are satisfied with the thoroughness of their inspection[2]. The basic survey is best for new builds, while a Homebuyer Report or Building Survey is suitable for older properties with potential structural issues. A thorough survey could help you avoid major unexpected expenses[2]. If you find issues in the survey, you can negotiate the asking price accordingly.
Neglecting White Goods Handling
Many removal companies require specialist disconnection or installation of white goods, which can cost a fortune if unplanned. Ensure you book these services well in advance to stay budget-friendly[2].
Ignoring Protections Against Purchase Fallthrough
Home purchases often fall through, causing financial loss in terms of conveyancing, broker, and survey fees. HomeOwners Alliance offers home buyers' protection insurance, enabling you to recover some costs if the purchase falls through[2].
Overlooking Legal Reports
Conveyancing is a critical part of the buying process, involving detailed searches to highlight potential issues. Don't penny-pinch on a conveyancer. Ensure they are licensed and read all reports they send you to understand your property's true condition[2].
Accepting the Asking Price
The average home sells for £16,000 less than the asking price[4]. Consider offering below the listed price to negotiate a better deal. Remember, not every offer is offensive.
Choosing the Wrong Broker
Mortgage brokers can help secure better deals, but they may charge service fees. Fee-free brokers like London and Country, Better.co.uk, and Mojo Mortgages exist[4]. Avoid brokers affiliated with the estate agent selling the property.
Other Common Mistakes
Minor mistakes can add up. Neglecting energy bill switches, not updating the DVLA, or forgetting to set up a Royal Mail redirection service could lead to financial consequences[3]. To prevent these issues, remember to update all necessary authorities, switch energy bills, and arrange for a redirection service.
Sources:
- https://www.dailymail.co.uk/money/mortgages/article-5031523/Removal-insurance-vital-protect-home-belongings.html
- https://www.reallymoving.com/news/avoid-removal-mishaps-3142
- https://www.homeownersalliance.co.uk/news/toby-leek/common-mistakes-when-selling-your-home
- https://www.which.co.uk/mortgages/first-time-buyers/buying-your-home/avoiding-mistakes-when-buying-your-first-home
- Forgetting to consider additional insurance for removals can leave your belongings unprotected, resulting in expensive repairs or replacements. Premiums typically amount to around 10% of the removals cost.
- Underestimating the volume of possessions can lead to financial burden, as hiring an inadequate-sized van may necessitate additional trips or larger vans, causing increased costs.
- Skipping a property survey, especially for older properties, may result in expensive structural repairs or renovations. Homebuyer Report or Building Survey can identify potential issues for older properties.
- Failing to book specialist disconnection or installation services for white goods can be costly, as many removal companies may charge extra for these services.
- Neglecting home buyers' protection insurance can lead to financial loss if a home purchase falls through, resulting in costs for conveyancing, broker, and survey fees.
- Ignoring legal reports during the conveyancing process can lead to hidden issues with the property, potentially causing financial troubles down the line. Always ensure your conveyancer is licensed and thoroughly read all reports.
- Accepting the asking price for a home without negotiating could result in overpaying, as the average home sells for £16,000 less than the asking price.
- Choosing the wrong mortgage broker who charges service fees can increase the overall cost of a mortgage. Opt for fee-free brokers like London and Country, Better.co.uk, and Mojo Mortgages.
- Overlooking minor details like forgetting to switch energy bills, update the DVLA, or arrange for a Royal Mail redirection service can lead to additional costs down the line.
- Associating with an estate agent's affiliated mortgage broker may negatively impact the mortgage deal, as there might be hidden fees or biased advice. It's best to choose an independent broker for a better deal.
