5 Signs That You’re About to Pay More Than a House is Worth

In January 2021, UK’s land ministry revealed that 37% of residential properties had already been sold for high asking prices. In other instances, they were more than the final asking price. Therefore, you’re bound to ask why buyers never saw the early signs before making the final payment. Whether you are a first-timer or not, these signs can be easily overlooked. For this and several other reasons, this article brings to the fore signs many tend to forget. 

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Listed too long on the market

This is usually one of the telltale signs that the property in question is too expensive. For this reason, many potential buyers opted to look elsewhere to buy what they consider within their set budget. According to the UK housing market, the standard period a house stays listed is 102 days before it is snapped up. Indeed, there are instances where listed homes were bought just within its first listing week. Even though experts agree on variances in different cities, listings exceeding ten months are questionable. 

Therefore, when you’re buying a property but fail to question why it’s been listed for too long, you are likely to pay more than the house is worth. Another strategy to use is to find out the average listing period for other properties in the neighbourhood. If you notice a significant variation, you don’t have to waste time on it. Indeed, an overpriced property may be more than what your mortgage allows. If you’re unsure how much loan you’re getting, find out using the link www.mortgagecalculator.uk for a fair idea before getting that overpriced property.

The inspection stage detected problems

Another red flag that you’re about to pay more than a house is worth is when the home inspection discovers problems. Ideally, a review of the property will give the go-ahead (or not) on a property. However, buying a property with known structural or fixture problems means expensive repairs immediately or within a year of moving in. Some buyers may not mind much about the actual cost, but others would.

If you are in the latter group, that should be a sign that the property will cost you a lot more in a short while. With a scenario like this, it’s not worth risking your financial future. While everything wrong with a property like that is fixable, you should ask yourself if you have enough savings to take care of costly repairs.

Lovely house, but a less desireable neighbourhood or location

These are pretty common everywhere. The property looks good with all the correct fixtures, but when you look at the neighbourhood, it’s a different story. A complete mismatch is the best description for something like this. For whatever reason, marketers in the housing industry believe such residential properties can give the neighbourhood good ratings. Unfortunately, this is far from the truth. A lovely house in a terrible location only exposes the disparities even further.

Meanwhile, security research has proven that occupants of such houses become easy targets for criminals. In commercial circles, it is believed that even though a house is highly priced in a not-so-good neighbourhood, it can become an attraction point for real estate investors. The idea is that a few lovely homes in the wrong location will act as ‘magnets’ to pull in more interest to drive further development of the area. No matter how good and futuristic that sounds, do not fall for such marketing gimmicks.

Using an inexperienced housing agent

There are several benefits to working with a professional real estate agent. They have significant experience in helping buyers find excellent property at affordable budgets. It’s not the same when you choose to go with an inexperienced agent. A novice lacks the inside scoop that experienced ones have. Therefore, failure to go with the best ones can be a bane for your finances.

Image by evondue from Pixabay

An eagerness to buy at all costs

Research has shown that displaying too much emotion is quite common among first-time property buyers. Their enthusiasm to own a house, unfortunately, impacts their sense of prudence. It’s one of the reasons buyers are advised not to display too much eagerness when viewing a property. The more interested you are, the higher the chance that the housing agent or seller will hike the actual cost. That’s because they know (from your actions and words) that nothing will stop you from buying a dream house when you see it. 

This is not an exhaustive list, but these five points are the most common signs to be on the lookout for when you commence a property search.

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