10 things not to do when buying or selling a house

We are all reminded constantly about the things to do when applying for a mortgage, but there are plenty more things to consider when buying or selling a house than simply weighing up your financial options.

Most first-time homebuyers are so excited at the prospect of moving into a new home that they fail to check out the property thoroughly before they pay a deposit, and all sorts of property nightmares can follow. Mistakes can be expensive when it comes to property, so if you are buying a new home, remember:

1. Footprints and mortgage quotes

Shopping around for financial products is good advice, but in the case of a mortgage, applying for too many mortgage quotes can do more harm than good. Any lender you apply to could run a full credit check on you, and each time this is carried out it will leave a ´footprint´ on your credit report. This means that if you approach several lenders for a quote, they are likely to leave footprints on your credit record, which means you could be turned down for credit in the future. To ensure this doesn´t happen, don´t apply for too many mortgages or loans at the same time.

2. Fixing your mortgage long term

A fixed-rate mortgage will enable you to budget as you will know how much you are paying each month, and as a result, it can be tempting to fix your loan for a long period. If, however you fix your mortgage for too long, you can never be aware of how your personal circumstances may change during that time, and you could find it very expensive to increase the size of your mortgage if you want to move to a more expensive property. If you are made redundant or go through a divorce, you may find yourself unable to continue with the repayments, and on the other side of the coin, you could be hit with expensive early repayment charges if you want to settle the debt.

3.  Estate agent talk

If you put in an offer on a property that is under the asking price, watch out for estate agent ´talk´, to try and make you increase your offer. They will probably tell you another couple are viewing the property later today and are willing to pay the asking price, but the house could be yours if you up your offer now. Remember estate agents work on commission, so the more they get for the property, the more they will earn. Stick to your guns and only make an offer on a property which is affordable to you and a fair price for the house.

4. Buying when property peaks

If you can afford to buy when property prices are at their peak, but don´t really need to, hold off buying for a year or two when prices start to tumble. There is nothing worse than buying a property one year, only to find it is worth less than you paid for it just 6 months later.

5. Hidden costs and solicitor´s fees

Never imagine, even if you are a first-time buyer that the only cost involved in buying a property is for the house itself. A wide range of other costs have to be budgeted for, including: valuation fees, solicitor´s fees, stamp duty and possibly modernisation and renovation costs. Make sure you take good advice from a family member or friend about the costs of buying your first home so you are not in for any nasty surprises after exchanging contracts.
If you are selling a property, some of the most important mistakes to avoid include:

6. Leasehold properties

The value of a leasehold property is obviously affected by the number of years the lease has left to run, and the value declines as the lease reduces. If you wait until there is less than 80 years on the lease, then buying an extension becomes more expensive. The value is calculated by deducting the value of the property before he lease extension from the value of the property afterwards, plus the value of the landlord´s interest in the property. If the lease has 80 years or more to run, you only have to pay the landlord´s interest, which is not linked to the value of the property. In other words, you can save thousands of pounds by extending your lease before the length falls below 80 years. If your lease is approaching the 80 year mark, look at extending it as soon as possible.

7. Concrete and gardens

Many homeowners decide to concrete over the garden and use the space for a driveway or extra parking. This may be more practical for you, but bear in mind, when you come to selling your property, the initial look of the outside garden area can sway buyers into making an offer, and a garden area is much more attractive than a concrete slab. If prospective buyers are put off before they even get to the front door, you are unlikely to achieve a sale.

8. Retain original features

Never rip out or remove original features in a property, especially as they may be worth a substantial amount of money. If certain original features are not to your taste, see if you can subtly change them without losing any value, or restore them to their former glory, and increase the value of your property at the same time.

9.  Stop smoking at home

Stop smoking all together would be a good idea, but if you must smoke, do it outside the house. If a none-smoking couple view your property, and they are greeted with an overwhelming smell of stale smoke, they will be immediately put-off. If you can afford to do it, give the interior walls a lick of paint before you put the house on the market.

10. Stick to neutral shades

Dark shades of paint on walls and dark carpets can make even the brightest property look oppressive and dingy.  Keep your shades neutral and the place will look much better to prospective buyers, as they will be able to see where they can make small changes and add furniture and fabrics to personalise the property without having to rip up all the carpets or re-paint all the walls.