RICS has launched a set of free, consumer-friendly guides to help buyers and sellers understand exactly what to do and how to avoid any pitfalls.
At a time when schemes such as Help to Buy are seeing demand rapidly increase, almost a third of first time buyers across the country admit that they do not understand the processes involved when purchasing their first home.
RICS says phase two of the government’s Help to Buy scheme is expected to see a sharp increase in potential buyers, and a record 56% more chartered surveyors expect to see transaction levels increase rather than decrease between now and the end of the year. However, 29% of first time buyers admit to not fully understanding the purchase process when taking the plunge.
Significantly, over a quarter of first time buyers also admit to not knowing the difference between a market valuation (the property’s actual worth), an agent’s appraisal (an estimate as to what it can sell for) and a survey (a surveyor’s assessment as to the condition of the property). RICS says failing to grasp the fundamentals could create big problems for buyers and sellers alike and, in some cases, could lead to unexpected costs and even potential transactions falling through.
Peter Bolton King, RICS’ global residential director, said: “It’s no secret that buyer numbers are on the up and more and more sales are going through as the market begin to find its feet again. With this in mind, it’s a big concern that there isn’t enough advice out there to help people buying and selling their homes, especially when it comes to first time buyers who haven’t gone through the tricky and stressful process of purchasing their first home.
“The guides we produced are designed to help those who’re looking to buy, sell or rent a home and, hopefully, will go some way to making sure the growing number of transactions across the UK go smoothly.”
