The Royal Institution of Chartered Surveyors has teamed up with TV presenter and property expert Phil Spencer to produce three new helpful leaflets about buying a home, selling property and choosing a survey.
Everyone knows the advertising line “Your home is at risk if you don’t keep up with your mortgage repayments”, but according to RICS there are many other risks people should be aware of which threaten to ruin the sale or purchase of their dream home.
Each of the three guides has been specifically designed to address the questions most frequently asked by the public. They are entitled:
RICS housing spokesman, Jeremy Leaf says:
“Knowledge is power. Many people involved in the 1.45 million house sales which take place in the UK every year are overwhelmed by the process of buying or selling a home.”
“Whilst we cannot remove the stress involved in moving house, we can provide clear, easy to understand advise. These leaflets are just the start of a toolkit of information we will be offering the public.”
“With 10,000 of our members working across all areas of the residential market; from building surveying to estate agency and lettings, we want people to think property advice, think chartered surveyor.”
Phil Spencer, co-presenter of two of Channel 4’s award winning property programmes Relocation and Location, Location, Location, says:
“More than ever before, property means big money, so it pays to seek the best advice possible from experts who really know what they are talking about. In my opinion, these RICS guides are a great starting point.”
Buying your home
This RICS guide gives step-by-step impartial advise about everything from how to arrange a mortgage, to identifying your dream home, understanding how the purchase process works and knowing your rights.
Jeremy Leaf says: “A moving costs checklist is simple but crucial – many people forget to factor in stamp duty, removal and solicitors costs in their final house budget only to find they cannot afford the dream house they have set their heart on.”
Selling your home
Phil Spencer says: “Most people are inexperienced in property dealings and the UK housing market is complicated to navigate. In addition, estate agents are not licensed and some do not even follow any code of practice.”
“Before registering with an estate agent, people should read this leaflet and arm themselves with information about the service they can expect. Better still, they should sign-up with a chartered surveyor estate agent whose activities are professionally regulated.”
Understanding property surveys
Only one in five people commission a survey before they buy a property. Some mistakenly think that a mortgage valuation is a survey, and many people begrudge paying out for an independent survey on top of all the other purchasing costs. RICS maintains this is a very short-termist view.
Jeremy Leaf says: “Taking on a property without giving it a proper health check is a risky business which can result in a financial headache in the future.”
“Not only can a survey offer the buyer peace-of-mind, it can also help them renegotiate their offer to reflect any remedial works on the property. Our guide ‘Understanding property surveys’ explains the different types of surveys available and what people can expect from them as well as how to find a chartered surveyor working in their area.”
The guides can be read at www.rics.org/public www.rics.org/public or contact RICS Contact Centre on 0870 333 1600
| Some example pitfalls and how to avoid them |
|
Selling pitfalls |
Risk |
Avoidance |
|
Being seduced into selecting an estate agent who values your house at the highest price regardless of their credentials. |
The house may get stuck on the market.
If the estate agent is unregulated you will have no course of redress if things go wrong. |
Try to choose an estate agent who is a member of the RICS, NAEA and/or the Ombudsman of Estate Agency. |
|
Check the estate agent's contract |
Getting locked-in to a long term contract with one agent |
Consider putting the house on the market with joint or multiple agents. (But don't forget to factor their fees - 2-3% of sale price - when working out the budget available for purchase of the next property |
|
Putting the property on the market too quickly |
First impressions count - potential buyers may be put off by peeling paint, animal smells, damp or general disrepair |
Look at the property objectively. Complete any necessary remedial works before putting up the for sale sign and clear out as much excess clutter as possible. |
|
Buying pitfalls |
Risk |
Avoidance |
|
Offering the asking price for a property without having a survey before exchanging contracts |
Although the house may look great superficially, without a survey it will be impossible to know whether it is structurally sound. |
A Home Valuation Survey (HSV) or a full Building Survey, conducted by a member of RICS - depending on the age and type of property - will give highlight where there may be problems.
It may even be worth renegotiating the offer to reflect the cost of the works needed. |
|
Getting carried away at an auction and offering a price above the value of the property |
Being committed to purchase a property which you cannot afford and which is over-priced |
Arrange for a survey/viewing of the property in advance. Agree your budget and stick to it whatever. |
|
Setting out to buy a property without researching mortgage options in advance |
Finding the dream house and then losing it to another buyer because you mortgage is not in place |
Study the options in advance and know your budget - factor in all other cost eg stamp duty, solicitor's fees, removal cost and the survey. |
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