Property Red Flags – Knowing When to Walk Away from Buying a New Home

Buying a new home is often a big investment in time and emotional energy as well as money and it can be very easy to become attached to a property a long time before it is actually yours.  However, it is really important to keep a cool head and to spot any ‘Red Flags’ along your property buying journey.  Recognising the warning signs and knowing when to walk away from a sale is key.  In this blog we discuss the signs to look out for and how your survey and surveyor can help.

Knowledge is Power

“The man who asks a question is a fool for a minute, the man who does not ask is a fool for life.” – Confucius

We will come to the actual bricks and mortar stuff in a minute, but the first warning signs to consider are the ones you can’t see, and these can be the most worrying.  Do not be afraid to ask a lot of questions in the early stages to both the estate agents and the sellers.  Your job is to get as much information as possible, but be aware that everyone will want to show the house in its most positive light.  Think about, why is the vendor moving? There are lots of valid reasons for moving such as needing more space, relocating, financial issues etc. but there are others, such as falling out with next door, noise issues and boundary disputes.

Next, are they motivated to sell and are they the type of seller who is willing to compromise? Some sellers can be surprisingly unreasonable about negotiating the actual deal and can drag their feet.  Remember that a property deal should be a mutually beneficial arrangement.  You have a right to ensure that your best interests are protected and if a seller is unreasonable and unwilling to negotiate it may well be time to cut your losses and walk away.

Consider also the marketing history of the house.  Has it been on the market a while, perhaps with other agents? Is the price reasonable? What other offers or surveys have been done and have previous negotiations fallen through?  This is all important information to have as it will help you to know if you need to dig a little deeper.

Bricks and Mortar

During a house viewing it is not necessary to go over the house with a fine-tooth comb – this is your surveyor’s job.  However, it is helpful to look out for any pre-existing extensions or alterations and ask about the permissions obtained for these and the paperwork to support them.  This will help your surveyor and legal adviser to make sure that all this is in order otherwise this is a major warning sign.

Remember, physical defects can always be fixed, but everyone has their own personal comfort zone on the ‘House Needs Work’ spectrum! This means that what might be a major Red Flag for one person won’t be for another.  Therefore, it is vital that you are fully aware of the true condition of the house, that you are comfortable with this and that the condition is reflected in the price. Instructing a qualified Surveyor to undertake the right level of house survey for your needs is vital.  This will arm you with lots of information so you know exactly what you are buying, warts and all, and will also help you and your legal adviser know what further information to ask for.  It will also direct you to other professionals such as electricians and gas engineers to ensure your new home is safe.

Most of all it will identify warning signs, give you tools for negotiating the price and help you decide whether you can proceed or whether it’s unfortunately time to walk away.

Negotiating the Price

Building a relationship with the seller doesn’t have to be all that involved but there does need to be a level of trust and honesty.  You need to be confident that when your ask a direct question, you get a direct and truthful answer and that your negotiations are straightforward.  Sometimes people can get emotional about their homes and this is to be expected and respected, but if things are getting ‘principled’ and stubborn this could signal a difficult road ahead.

The most common area of negotiation is price and with your survey in hand and all your acquired knowledge this should be something that can be reasonably and respectfully addressed.  Obviously if all your research indicates that the property is overpriced and the seller is refusing to budge on the asking price then it’s time to think again.

Buying a new home is a drawn-out process.  All that searching, obtaining your mortgage in principle, the conveyancing and getting the survey can lead to a feeling of ownership long before the keys are actually in your hand.  There can be a huge temptation to ignore the warning signs along the way but try to remember that other opportunities will present themselves and to be patient. You could save yourself a lot of heartache in the long run and the right property is always worth waiting for.

To find out more about the surveys we offer and how Jones Battye can help you today please see our website or contact us today on 01685 378894 (Aberdare) or 02920 625433 (Cardiff).