The 'hidden cost' that can amount up to 'a few thousand pounds' for home buyers
Hidden costs can prove a colossal burden when buying or selling a home
Buying a home is one of the most crucial decisions a person makes in their lifetime, warranting thorough preparation.
The prospect is particularly daunting to first-time buyers who may be ill-prepared for hidden costs that emerge along the way.
Experts have warned that new policies could present an even greater burden to home buyers and sellers in the coming year.
Jonathan Veers, Owner and Operational Director at The Buy To Let Platform, flagged two ways property prices can be inflated.
Home buyers are best advised to consider hidden costs before putting in an offer
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“When purchasing a new property, there are always many different discernible costs associated with the administrative feeds, the salaries of estate agents, the property itself, regulatory compliance and more,” he explained.
“Sometimes, these costs can be ‘hidden’."
The expert’s first caution concerned home inspections, which can take home buyers by surprise with their hefty costs.
“Home inspections are not always required,” Jonathan explained. “But when they are, they can come as a shock to the home buyer - especially for first-time buyers.
“The cost of the inspection can vary on a number of factors, including the size and composition of the property, but it can range from a few hundred to a few thousand pounds.
“I would certainly recommend having some first of safety net when doing so.”
The procedure is undertaken to assess the safety and quality of properties on the market to be sold.
With traditional inspection, the buyer will carry the burden of paying for the process, as they are doing due diligence on their investment.
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Hidden costs can add up to colossal sums for home buyers
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One rule due to come into effect in the coming months concerns electrical fuses, which will need to be stored differently than in previous years.
The ‘Electrical Safety Stands in the Private Rented Sector Regulations’ will require fuses to be stored in a metal-clad consumer unit or metal-clad casing.
“This goes contract to the previous 50 years of advice on where we should keep them out of metal boxes and place them inside plastic boxes, as metal conducts electricity,” notes Jonathan.
“However, this new safety regulation may incur costs of up to £650, though this may be smaller for smaller properties.”