72% of buyers do without structural survey
Monday, 30 Apr 2007 09:58
House buyers are cutting corners (photo: pixmedia)
Almost three-quarters of home buyers are doing without structural surveys, new research reveals.
A study from AA Legal Services finds just 28 per cent of buyers commissioned a structural survey or checked flood risk for their new property.
The majority of home buyers also failed to factor in future costs, with 29 per cent considering the cost of council tax and 21 per cent finding out the cost of buildings and home insurance on their new home.
However, the study reveals it was not just costs home buyers were cutting corners on - only 15 per cent of buyers said they met their new neighbours before moving in and 11 per cent looked into noise-levels at the property.
"I'm very worried that so few take steps to protect their investment and ensure that their interests are represented," commented James Molloy of AA Legal Services.
"With home buyers stretching themselves to the financial limits to afford their home, many are cutting back on the relatively low costs of basic legal and social inspections.
"New home owners who do not carry out basic checks, face discovering too late that their dream home could actually be a financial time bomb."
Figures show low income buyers purchasing a property for less than £100,000 were putting themselves at most risk, with young buyers (aged 18 to 24) the most likely to check on future costs.
Four in ten young buyers looked into the insurance costs of their new property before moving in, and 45 per cent researched their future council tax bills.
Tips for home buyers from AA Legal Services
Take your time. Buying a home is one of the biggest decisions you will ever make. If you are being pushed to make a purchase decision, research the area before you find the property.
Check out the local facilities, council tax and local development plans.
Seek independent advice. Do not just go with the advice of the estate agent and their allied service providers. Remember that their interests lie in completing the sale on behalf of the vendor. They may not provide the most comprehensive, independent advice. When looking for independent advice, shop around and ask questions.
Do not cut corners: When buying a home, trying to keep costs down is understandable. However, remember that in the grand scheme of things, ensuring that your property has been comprehensively surveyed before you agree the purchase could save you a lot of money in the long run - especially if a structural fault is discovered which means you can walk away losing just the survey cost – not potentially expensive remedial works.
Look into the costs before completion. There is a period between agreeing and finalising a sale, when buyers have an opportunity to look into possible costs following the purchase. During the conveyancing process, take time to get comparative insurance quotes on the property and any work which may need to be done. You can then ensure that these are taken into account in the final contract and there will be no nasty surprises to follow.
If you are not sure, ask your solicitor. If you discover something about the property which may become a problem, for example planned building works in your area, bring this up with your solicitor. Most issues of this nature should be covered in a search, but it is worth raising them before signing the contract to make doubly sure.