Money News
With the housing market in its most volatile state since the early 90s, 26% of homebuyers unduly take a huge financial gamble by not bothering to do any comparative research on the current value of homes before putting in an offer. So claims Zoopla.co.uk, the online property community that combines home valuation tools, sold price information and user-generated content.
After having questioned 1000 homeowners and despite 90% of them saying their home was the biggest purchase of their life, 71% admitted they didn't even check a property's previous sale price before signing on the dotted line - potentially risking thousands of pounds in overpayment.
The survey found that more people carry out research on the price of blenders, toasters, cars and furniture than they do on their prospective home with 92% saying they check the price of household appliances before purchase. 85% said they compare the value of cars before buying them, and 78% did the same for furniture. Only 42% confirmed they thoroughly research house prices before making a purchase.
Despite internet access throughout the UK, 51% said they don't use the web to check property prices. Meanwhile, 40% were unaware of previous sold prices, what the neighbours paid and current values - all information free and easily accessible online.
Some 29% admitted they did no research into the local area before moving in, with only 10% saying they asked a neighbour what the community was like before committing to purchase, suggesting that buyers are moving blindly and with only a basic understanding of their new community. 41% said their lack of research resulted in their housing honeymoon only lasting one week.
The top five areas that homeowners end up regretting not doing their homework on are: Parking; neighbours; traffic congestion; true value of their home and local amenities (including schools, doctors, etc).
Alex Chesterman, CEO of Zoopla.co.uk comments: "UK homeowners are desperately uninformed when it comes to dealing in the residential property market. For most of us, buying a property is one of the biggest decisions and payments we'll ever make, so taking the right time and effort researching the market is vital.
"With the average UK home currently valued by Zoopla.co.uk at £228,649, overpaying by 10% can result in a £20,000+ gamble, so it's well worth doing research into the prices paid by neighbours, current values and local trends, before making an offer or setting a selling price."
05 March 2008 © Moneyextra.com
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