Print friendly version 9 Apr 2008

Homeowners fail to do their homework

Despite 90% of homeowners saying their house was the biggest purchase of their life, 26% do not do any research into value before putting in an offer, according to Zoopla.

Research from the online property community revealed a lack of research among homebuyers around the UK. It found 71% do not check a property’s previous sale price before completing on the purchase, potentially risking overpaying.

In fact, more people carry out research into the price of blenders, toasters, cars and furniture than that of their prospective home, according to Zoopla, with 92% checking the price of household appliances prior to purchase. Car prices are important enough to 85% of respondents to be compared before buying and 78% check prices for furniture. This is compared to 42% of people who thoroughly research house prices before making a purchase.

In addition, 29% do no research into the local area before moving in, with only 10% speaking to a neighbour about the community before committing to purchase. This lack of research results in the “housing honeymoon” lasting for just one week, according to 41% of respondents to Zoopla’s survey.

Alex Chesterman, founder and CEO of Zoopla, said: “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 at £228,649, overpaying by 10% can result in a £20,000-plus gamble, so it’s well worth doing research into the prices paid by neighbours, current values and local trends before making an offer.”

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