After a fraught post-pandemic period for the housing market, we are seeing the industry continue to normalise, with predictions the average new seller asking prices will be 1% lower by the end of 2024.
It’s bound to have an impact on those wishing to buy or sell.
As the housing market cools to a more balanced state in 2024, there will be new opportunities for buyers to find their new homes.
However, amidst the increased competition among sellers, it’s crucial to avoid common mistakes that could hinder your homeownership journey.
So, what house hunting mistakes should you avoid in 2024?
-
Neglecting to assess the long-term resale value of the property
We have seen volatile shifts in the housing market which can cause major fluctuations in house prices. My main piece of advice here is to understand and learn about market trends and how to identify them.
Factors such as interest rates, economic conditions, and buyer preferences (such as the number of bedrooms), features such as gardens and parking, accessibility and location can all influence the demand for homes in your area.
Anticipating these trends can help you make informed decisions about pricing and marketability in the future.
-
Overlooking hidden costs like property maintenance fees
Most homes require regular maintenance, such as painting, roofing, plumbing, and appliance repairs which, if not taken into account, can be a financial headache in the long run.
My advice here would be to create a dedicated home maintenance fund that can help you manage unexpected expenses and avoid financial strain.
If you can, set aside a portion of your monthly income to cover maintenance costs and unexpected repairs.
-
Relying solely on online photos without physically visiting the house
Competition is rife out there and speed can be of the essence when it comes to buying the home of your dreams, but please make sure you visit the property in person before money exchanges hands – there are just too many cons to blind offers.
This will likely be one of the biggest financial decisions you will ever make, and it isn’t worth the gamble. So, to avoid unnecessary future heartache, visiting the property (at least once) is an absolute must.
-
Ignoring the neighbourhood’s future development plans or potential changes
Imagine your home’s beautiful view being obstructed by a building site you knew nothing about. I would advise you thoroughly investigate any future development plans in the area. This will ensure you know what to expect, how the plans might end up affecting not only the property price and the ability to sell if needed, as well as the overall enjoyment you get out of your home.
-
Failing to explore financing options and being pre-approved for a mortgage before house hunting
Pre-approval [also known as a decision in principle] provides a clear understanding of your borrowing power, allowing you to set realistic budget expectations and focus on homes that you can afford.
There’s a risk you might fall in love with a property only to discover that you cannot afford it, so get your numbers straight, educate yourself about the options available to you and house hunt realistically.
-
Skipping a thorough examination of the home’s foundation, plumbing, and electrical systems during inspections / not getting a full structural survey report
Neglecting a thorough inspection can lead to the discovery of hidden structural defects or underlying issues with the plumbing and electrical systems that can cost a fortune to sort out.
These issues can significantly reduce your property values, as well as drive your insurance premiums up. Indeed, some insurance companies won’t pay out if you haven’t had a survey, and discovered problems later down the line.
So please make sure all surveys and structural reports are in order to avoid financial (and emotional) disaster.
While the pathway to homeownership may be fraught with challenges and hidden costs, it’s important to remain optimistic – the rewards often outweigh the risks.
With careful planning, informed decision-making, a willingness to learn and choosing to work with the right professionals, who can help you through the entire process, prospective homeowners can navigate the buying process and reap the benefits that come with owning a home.
Michelle Niziol is director and owner of IMS Property Group, estate agent and mortgage broker, as well as a property developer. Follow IMS Property Group on Instagram for updates @ims_mortgages_lettings_sales
