Buying a home is expensive, and it is easy to see why a first time buyer struggle to step on to the property ladder. However, while buying a home is costly, many first-time buyers believe they spent too much money on purchasing a house.
A study undertaken by Comparethemarket, speaking with more than 2,000 property owners, states that around 50% of first-time buyers made expensive mistakes when buying their house. Respondents believed that they spent too much money on conveyancing, removal firms and mortgage brokers.
Broker services come under fire in study on first time buyer market
The study says 31% of respondents are looking to lower the costs of the mortgage broker service when they next buy a home. 25% of respondents said they would try to reduce removal costs when they next move house and 20% of respondents are keen to lower conveyancing costs.
13% of people questioned are eager to lower survey costs, and 5% are looking to find better value for money estate agents. However, there is a caveat that as first time buyers don’t have a property to sell, their dealings with agents may be limited.
In follow-up questions in the survey, 15% said they wish they had haggled on the property price and 10% believe they made an error in using their entire savings to pay for the deposit. Using your savings in this manner makes it impossible to leave money aside for emergencies or carry out improvements around the home. 8% of respondents said they wish they had found a better mortgage broker and 6% wish they had a more detailed survey carried out of their home.
Many buyers automatically turned to their bank
One intriguing element comes with the fact around a quarter of first time buyers turned to their bank for a mortgage rather than comparing the market. Of course, this is likely to be a key element the company behind the survey was looking to find, so this may be skewed, but buyers are advised to shop around and find the best deal. 19% of respondents stated an opinion that mortgage brokers provide no value when buying a property.
Mark Goldson of Comparethemarket, said; “People with no prior experience in purchasing a property may not be aware which services and products offered to them on the home buying journey are mandatory and which are discretionary and, importantly, whether they are good value or uncompetitive. The whole buying procedure can be intimidating, particularly for those going through the process for the first time. Fears around hidden fees and dealing with estate agents, lawyers, surveyors and mortgage companies are legitimate and strong enough to put off people from trying to make a purchase.”
There is no denying that buying a house is expensive, but many first-time buyers are unsure of how to best spend their money. There is a great deal to be said for slowing down when you buy your first home and taking in as much guidance as possible.
Whatever move you are keen to make in the property market, it is best to call on the experts for help. As a first time buyer, if you need guidance or assistance, contact Williams of Petersfield, and we will be more than happy to assist you.