Mistakes to avoid when buying a new home
Purchasing a home is the biggest deal most of us will make, so it's really important that you take every precaution that you don't make a mistake during the buying process that could have a major impact for years to come. Take care to ensure you don't fall into these traps:
Not knowing your budget
Convincing yourself you can afford what you can't afford can have serious consequences down the line when buying a new home. Make sure you know the maximum price you can pay for a property/mortgage and stick to it.
Not undertaking a home survey
You may convince yourself that a professional inspection is not really necessary. Yet, having your new home independently snagged and inspected gives you important information about the overall property condition. It also highlights specific defects or problems that need to be dealt with.
Paying more than is necessary
Many housebuilders are open to negotiation and there are discounts to be had if you ask for them. It could be as much as 5% or even 10% of the asking price. It could be a little extra thrown in such as getting your stamp duty paid. No matter how much you want that new home, make sure you're not missing out on a discount simply by not asking for it.
Not referring to the consumer code for homebuilders
It's a legal requirement for you to be treated fairly when buying a new home. The consumer code for homebuilders is there to protect you. If you feel you have been misled by a housebuilder, such as being given false statements, refer to this code of conduct for home builders when contacting them.
A short leasehold is generally considered to be 80 years or less. Flats with short leases can make getting a mortgage more difficult. Likewise, when you want to sell the property it can cause problems. Try and get the lease extended before you buy or otherwise have the short lease reflected in the price you pay.
Not asking enough questions
Be a nuisance. Ask absolutely everything you can about the new home from everyone who can give you an answer. This isn't a time to be shy. If you're unclear about anything, from the mortgage application to the completion of the sale, now is the time to ask. Not to do so could be another unnecessary mistake when buying a new home.
If you are unsure on what you should be asking, have a look at our checklist for visiting a show home.