Owning a house is a dream for many, a symbol of stability and a place to call your own. But with such a significant investment, the process can be daunting. From securing a mortgage to navigating legalities and surveys, the complexities can quickly lead to you feeling overwhelmed. So, what common mistakes do you need to be aware of and avoid?

Property expert Natalie Mitchell at HomeHow.co.uk has created this guide to ensure you don’t make any mistakes when buying a new home. This guide is here to equip you with the knowledge to avoid common pitfalls and navigate your homebuying journey with confidence.

Below, Natalie explores all of the crucial steps like acquiring a Mortgage Agreement in Principle, the importance of a Homebuyer’s Survey, and the additional costs to consider beyond the asking price. She also delves into the emotional side of house hunting, reminding you to prioritise practical considerations alongside that your desire for a particular home. So, take a deep breath, and let’s ensure your homebuying journey is as smooth and stress-free as possible.

Mistake #1: Diving In Without a Mortgage Agreement in Principle (AIP):

Imagine finding your perfect home, complete with everything you’re looking for, only to discover your finances won’t stretch that far. An approved Mortgage Agreement in Principle (AIP) from a lender eliminates this disappointment. An AIP lets you know exactly how much you can comfortably borrow, strengthening your offer and making you a more attractive buyer to estate agents and sellers. Without an AIP, you risk losing out on your dream home to a more prepared buyer who can demonstrate their financial credibility.

Mistake #2: Ignoring the Homebuyer’s Survey – A False Sense of Security:

Don’t let that charming thatched roof or the elegant period features blind you to potential problems lurking beneath the surface. A professional Homebuyer’s Survey, like a RICS Level 2 Survey, is crucial for uncovering hidden issues that could significantly impact your finances and quality of life down the line. These issues can range from damp and subsidence – a particular concern with older properties – to outdated electrical wiring or an inefficient heating system. While repairs might be necessary, a thorough survey equips you to negotiate a lower price or factor in renovation costs realistically. Skipping this step could lead to unexpected financial burdens and potential safety hazards in the future.

Mistake #3: Forgetting About Additional Costs – The True Price of Your Dream Home:

While the asking price displayed on a charming cottage that you love might seem enticing, it’s not the only financial hurdle to consider. Factor in additional costs like solicitor fees, Stamp Duty Land Tax (SDLT), which may differ depending on the purchase price, and potential removal costs. Understanding these expenses will help you to budget more effectively and avoid surprises at the completion stage. Don’t be afraid to ask your estate agent or solicitor for a detailed breakdown of these additional costs so you can factor them into your overall budget and avoid any unwanted strains on your finances.

Mistake #4: Getting Emotionally Attached to a Property – Letting Your Heart Rule Your Head:

It’s natural to fall in love with a Victorian terrace, picturing cosy evenings by the fireplace and laughter echoing through the spacious rooms. However, allowing emotions to dictate your decisions can lead to trouble. Maintain a level head and focus on practical aspects that will impact your day-to-day life, such as the location, functionality of the space, and long-term value of the property. Don’t get into gazundering wars fuelled by emotion; there will be other properties on the market. The right one will tick all the boxes on your list without stretching your finances to a breaking point.

Mistake #5: Neglecting the Surrounding Area – Location, Location, Location:

Don’t just focus on the house itself. It’s important to do your research on the surrounding area. Consider factors like commute times to work and schools, crime rates in the area, the availability of local amenities like shops, parks, and restaurants, and transport links. Is it a good fit for your lifestyle? Choosing a house in an area that doesn’t suit your needs can lead to regret later. Perhaps you crave a quiet village atmosphere, or maybe easy access to public transport is a priority. Understanding what matters most to you will help you narrow your search and find an area that complements your lifestyle.

Mistake #6: Leaving Money on the Table – The Art of Negotiation:

The asking price isn’t set in stone. Don’t be afraid to negotiate, especially if the Homebuyer’s Survey reveals repairs are necessary or the market conditions favour buyers. Come prepared with comparable sold house prices in the area to support your offer. Research similar properties that have recently sold and use that information to demonstrate a realistic valuation of the house. With a confident and well-informed approach, you might be surprised at how much negotiation power you hold.

Mistake #7: Not Including a Survey Contingency – Protecting Yourself from Unexpected Costs:

Include a Homebuyer’s Survey contingency in your offer. This clause acts as a safety net, allowing you to walk away from the purchase if the survey reveals major problems that significantly alter the value or habitability of the property. It protects you from getting stuck with a house riddled with expensive repairs that you weren’t anticipating. Having this contingency in place allows you to make informed decisions and avoid any potential financial burdens.

Final Thoughts

By equipping yourself with the knowledge explored in this guide, you can transform the homebuying process from a daunting experience into an exciting chapter in your life. Remember, you’re not alone in this journey. Solicitors, mortgage advisors, and estate agents are there to guide you, so don’t hesitate to ask questions and seek clarification. With careful planning, informed decisions, and a touch of patience, you’ll soon be celebrating the accomplishment of finding your perfect dream home – a place filled with memories waiting to be made.