Two thirds of First Time Buyers believe an estate agent or a surveyor carries out legal searches when buying a home
First Time Buyers are extremely confused about the different stages of the home-buying process, the responsibilities of the professionals involved and what is expected of them as buyers, reveals new research released today by home move comparison site reallymoving.com.
In a survey of 500 people who are planning to buy their first home in the next three years, undertaken in February 2018, respondents were asked a series of questions which anyone buying a property should know the answer to.
When asked who carries out local searches on a property, two thirds, (67%) of First Time Buyers responded that it was the responsibility of the surveyor or the estate agent to carry out searches such as environmental, water/drainage and chancel repair liability, with only 33% correctly identifying the conveyancer as the professional responsible.
Misunderstandings about the costs involved when buying a home could lead to First Time Buyers being unprepared and underfunded, ultimately leading to transactions falling through. A large proportion (36%) don’t realise that they are responsible for paying for a survey, believing it to be the seller, the buyer and seller together, or the mortgage company who foots the bill. Just 63% know that the buyer pays for a mortgage valuation, HomeBuyer Report or Building Survey.
Many First Time Buyers are now exempt from paying stamp duty, since the Chancellor scrapped the tax on property transactions of under £300,000, but this game-changing tax giveaway may have been lost on a large part of its target audience, with almost a quarter (24%) believing stamp duty is paid by the seller. A further 8% believe it is a payment the buyer makes to the seller, with a further 7.5% believing it’s a charge from solicitors.
When it comes to paying solicitors fees, however, First Time Buyers are in for a more pleasant surprise, with most respondents vastly over-estimating how much they will be charged for conveyancing. When asked how much solicitors fees are likely to be on a £250,000 property, 69% guessed around £1,500 when in fact the average is £550.
The jargon commonly used in the home-buying process can be confusing. Only 60% said they planned to secure a mortgage in principle in advance of offering on a property and only 55% understood the true meaning of ‘exchange’, with a worrying 37% believing it’s the date they collect the keys and move in.
