Buying and selling a home is an expensive business even before you take into account stamp duty, removal costs, a surveyor and estate agent fees.
However, homeowners needlessly add thousands of pounds to the final bill, property experts warn.
Here we reveal the mistakes that will see you lose money – and ways to prevent them.
Assuming you have insurance for removals
When you’ve packed up the contents of your home and waved off the removals van in the hope that you’ll be reunited with them at your new place, it’s a common mistake to assume that your goods are covered by insurance.
The removals company should have liability insurance in place – for example, if the van crashes or bad weather damages your items while unloading.
Protection: If your home insurance does not cover removals, you can purchase additional cover. Premiums are on average 10% of the removals cost
The amount the firm is liable for may be fixed – and less than the total value of your belongings.
According to analyst Defaqto, many home contents insurance policies cover your possessions during removal as standard but around 17 per cent do not.
For example, there may be exclusions, such as damage to glass and china unless professionally packed, says comparison website Go Compare.
If your home insurance does not cover removals, you can purchase additional cover from providers such as Sainsbury’s Bank.
Premiums are around 10 per cent of the removals cost on average, according to Compare My Move. That means if the total cost for moving belongings is £1,500, your removals cover is likely to cost £150.
This should offer provision for incidents such as vandalism, theft or attempted theft, storms or flooding, and crashes.
Always check the terms and conditions in your contract and see what insurance is offered.
For example, you might spot that if a mover breaks a plate it has packed, the firm would be liable, but if a mover breaks a plate that you have packed, it may not be.
Choose a firm from the National Guild of Removers Society or the British Association of Removers who will be able to recommend firms in your area.
Misjudging how much stuff you own
Most of us underestimate how much stuff we own but misjudging it could cost you dearly.
Rob Houghton, of comparison website Really Moving, says: ‘Some people don’t ask the removals firm to do a survey and book the wrong size van. Perhaps you forgot to say you have a garage or a shed.’
If the van is too small, the removal company may have to come back another day, which could double your costs, he adds.
Plus it would create huge difficulties if the buyers of your home are moving in on the same day.
An in-person survey is preferable for larger properties but Mr Houghton says video surveys from the removals company are a good solution.
On a video call you can virtually ‘walk’ them around your home so they get a good idea of the size of van and number of movers needed.
It’s also your responsibility to make sure the removals van has a parking permit and space to park at the property you are leaving and at your new home. Contact your council to do this.
If the van must park streets away it will add hours to your moving time, resulting in the firm charging you more if your quote is based on a time frame, Mr Houghton says.
Extra trips: If the removals van is too small, the company may have to come back another day, which could double your costs
Skipping a survey on your property
While skipping a survey on your new property may save a few hundred pounds, almost one in four owners wish they carried out a more thorough home inspection, Compare My Move says, as they can flag potential issues such as damp or dodgy electrics.
These are three types: Basic, Homebuyer Report and Building Survey or Full Structural Survey from surveyors with Royal Institution of Chartered Surveyors.
The Basic is best for new builds or modern homes, for a brief summary and costs from £300.
The Homebuyer Report costs from £400 and is ideal for properties under 50 years old and a more detailed assessment.
The Building or Full Structural costs from £650 and is recommended for older, larger properties with potential structural issues.
Dave Sayce, co-founder of Compare My Move, says: ‘Our survey reveals 32 pc of properties have roof issues.
Repairing a 50-square-metre roof could cost around £6,750, while a “level two” house survey averages just £445. A small upfront investment could help you avoid major unexpected expenses later.’
If you pay for a survey before purchasing a property, the findings can be used to negotiate on the asking price. For example, a surveyor may note that a roof is in disrepair and give an estimate for how much it might cost to replace.
You can then ask the sellers to factor this into the price you offer.
Forgetting about white goods
You may think your removal firm can help out with white goods but some require a specialist to disconnect them – which can cost a fortune if you haven’t booked in advance.
Mr Houghton says: ‘Some could be straightforward and you can do it yourself, but if you need to get an emergency plumber out that could cost up to £300.’
You shouldn’t disconnect a washing machine or dishwasher unless you’re confident with your plumbing skills, according to Domestic and General. It costs an average of under £60 to disconnect a washing machine while it is £30 to install it in your new home.
The fridge and freezer should be easy enough to disconnect by yourself. Fully empty it and wipe down the cooler surfaces with a baking soda and warm water solution. Then defrost the freezer.
After this you can unplug it from the mains. You must leave it unplugged for four hours after you’ve transported it to your new home.
No cover for sale falling through
Did you know that 30 per cent of property purchases fall through? Without insurance against this happening, you face losing fees spent on conveyancing, brokers and a survey.
Angela Kerr, of property website HomeOwners Alliance, says: ‘Sometimes the costliest mistakes are unavoidable.
The home-buying process is a mess – anyone can pull out at any time up to the exchange of contracts with zero consequences.’
Cover: Without insurance against the purchase falling through, you face losing fees spent on conveyancing, brokers and a survey
A buyer loses an average of more than £2,500 if a purchase falls through before completion, according to consumer website Which?
This cost takes into account surveys, mortgage valuations and solicitor fees. HomeOwners Alliance offers home buyers’ protection insurance, which allows you to claw back some conveyancing fees, survey costs and lender fees if your purchase falls through.
The standard policy costs £74 and covers up to £7,500 in conveyancing fees, £500 in mortgage valuation fees and £250 of mortgage arrangement and lender fees.
There is also a ‘plus’ policy for £149 and a ‘premier’ one for £199, which offer higher levels of cover. All three policies cover being gazumped, so long as the offer is at least £1,000 higher than yours.
Take it out as soon as your offer on a property is accepted if you want to be covered.
Similar protection is available at insurance provider Rhino Home Protect, where basic cover is £79 and the premium policy is £154.
Not reading the legal Reports
Conveyancing is the legal part of the buying process, and includes detailed searches to outline what you are buying, where the property boundaries are and if there are any environmental issues such as flood risk.
Matt Joy, chief growth officer at conveyancing platform Smoove, says one of the biggest mistakes you can make is trying to penny-pinch by getting a cheap conveyancer.
‘Expensive doesn’t necessarily mean good but you need someone who is going to take time with you,’ he says.
Ensure you use a licensed conveyancer (www.clc-uk.org/find-a-clc-lawyer) and expect to pay on average £2,000.
‘Another big mistake is not reading the information the conveyancer sends to you. You’re paying someone a lot of money – read the reports they send you.’
A conveyancing report could pick up anything from a woodworm infestation in timber to asbestos in the walls or faulty drainage.
Accepting the asking price
The average home sells for £16,000 less than the asking price, according to data from Zoopla, so consider making an offer below the listed price.
Jonathan Bone, head of mortgages at online broker Better.co.uk, says: ‘Do a lot of research. Have a look at sold prices in the area on websites such as Zoopla.
‘If you think the valuation is a bit steep, this will give you a good comparison to go back to the estate agent with.’
A good rule of thumb is to offer no more than 10 per cent off the asking price for risk of offending the seller, but it’s different in each situation.
Don’t rush: The average home sells for £16,000 less than the asking price, according to data from Zoopla, so consider making an offer below the listed price
Choosing the wrong Broker
For speed and ease, experts recommend you use a mortgage broker to help you to transfer your mortgage or to secure a new one. They have access to special deals and can find cheaper mortgages.
However, some charge the borrower a fee, whereas others simply get commission from the lender.
Some may charge an hourly rate, a percentage of your mortgage or a flat fee, the average amount being £500, according to the Money Advice Service.
If you’re trying to cut costs, explore a fee-free option, where the lender pays commission to the broker. Fee-free options include London and Country, Better.co.uk and Mojo Mortgages.
Make sure your broker is independent from the estate agent selling the property you plan to buy, Mr Bone says.
It is against the law for estate agents to advise you to use their own broker or conveyancer and to suggest it will be detrimental to your plans if you do not.
…And those smaller mistakes
Toby Leek, president of Propertymark, an industry body for property agents, says there’s a series of smaller mistakes you can make which will add up.
You should arrange for your energy bills to switch properties on your move date and be sure to take meter readings at both the old and new property on the day of the move so you only pay for your energy usage.
Mr Leek also says if you fail to inform certain bodies such as the Driver and Vehicle Licensing Agency (DVLA) of your move, it could prove costly. It can fine you £1,000 if you do not tell it when your address changes.
Set up a Royal Mail redirection service (costs start at £41.50) – if you miss important bills or letters notifying you of credit card payments you could be charged a penalty or late fees.
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