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  • 8 in 10 Buyers Research Their Next Fridge In More Depth Than Their Next House

    16th November 2017

    8 in 10 Buyers Research Their Next Fridge In More Depth Than Their Next House

    As buyers we consider ourselves to be quite savvy. We look at customer reviews on the products we want to buy to see if the next hoover or fridge we want is as good as the ads make it look. Is it worth the money, how well does it work, will it last long enough?

    Did you know?

    • 81% of shoppers research online before buying (Retailing Today)
    • 61% of shoppers read product reviews before making a purchase (econsultancy)
    • 33% of cars have a hidden history (HPI Ltd 2014)

     

    You’d expect that we also put as much research into what is likely to be the most expensive financial investment we will ever make… Wrong! We are very emotive – we make property purchases based on whether or not we can see ourselves living there and what colours we can imagine the rooms. Because the process is stressful we overlook the potential financial risk factors that are associated with investing into property and settle for the excitement of the fantasy.

    Only 20% of homebuyers have an independent survey to check that the property they want to buy is exactly what it says on the tin. Maybe the 80% are too busy researching the products online that they want to fill this new house with.

    A survey from insurance company LV= showed that on average respondents said they would be left with a repair bill of £4,205 to fix a range of hidden problems such as damp, rot and even structural defects. The poll found more than more than 1,000 buyers had found damp had been painted over, and furniture or pictures had been moved to cover damage. Research by ComRes research on behalf of RICS also found that buyers were left with £5,750 of repairs after they moved in.

    “Unfortunately you cannot rely on sellers to disclose any problems upfront… it is the buyer’s responsibility to investigate the condition of a property before buying it!”

     

    What this shows is that we are savvy when it comes to getting a good deal on a fridge or holiday but will generally look as far as cosmetics and ask little more when we see a house we like the look of.

     

    Why don’t people get a survey?

    • Most believe that they mortgage lender’s standard valuation is sufficient – it says nothing about the building’s state of repair and is for the lender, not you
    • They do not know about surveys
    • They are not willing to pay for a survey

    The average homebuyer report costs about £400 and the average property price is £217,928 (landregistry). This investment is just 0.18% of the property price and on average could save you a repair bill costing between £4,205 – £5,750.

     

    Economic theory suggests that in general we are risk averse – the facts would suggest we like a gamble!