Acquiring a property in Liverpool or anywhere else is often an anxious and daunting time for most of us. It can be the first time we deal with a solicitor, apply for a mortgage, deal with a real estate agent as a buyer and offer to buy something involving so much money.
Like anything in life the more often we do something the quicker we become proficient. The problem with buying or selling a property is that, for most of us, we simply don’t get enough practise to become proficient.
Such lack of “practise” often causes buyers to make fundamental errors. These errors often result in a substantial loss for the average buyer including:
• Paying too much for the home they want
• Losing their dream home to another buyer
• Buying the wrong home for their needs
• Getting stuck with a property that needs lots of repairs.
Here’s the three most common mistakes made by the average property buyer and how to avoid them.
1. Failing To Obtain Mortgage Pre-approval
A pre-approved mortgage is one where your bank has agreed to extend to you a mortgage up to a maximum amount (determined by the bank and based on your financial circumstances) before you have located the right property to purchase.
2. Failing To Take Hidden Costs Into Account
Buying a property involves a number of costs, some are obvious costs such as the purchase price of the property and others are hidden costs and only appear at the last minute. Here’s a quick list of some hidden costs . . .
• Bank Fees
• Building Inspection Fees
• Council Rates/Water Rates
• Mortgage Application Fees
• Mortgage Insurance/Mortgage Search Fees/Settlement Fees
• The Cost of a Pest Inspection
3. Failing To Carry Out A Final Inspection
Whatever you do be sure to have a final inspection of the property you are buying
A final inspection usually takes place on the day prior to settlement. The object is to ensure that the property is in the same condition as when exchange of contracts took place. If the property is damaged or in a substantially different state to what it was when you purchased the property you should alert your solicitor or conveyancer immediately.
Although it is a rare occurrence for a property to be damaged in the weeks between exchange of contracts and settlement it is very important that each buyer inspect the property prior to final settlement.
Remember, once settlement takes place there is no recourse on the old owner.
