What Exactly is a Home Buyer survey?

What is a home buyer survey?

A home buyer survey is a condition report which will give advice as to any defects on the property you are buying, e.g. structural, subsidence, damp, roof, electrics, timber. The surveyor will only inspect what is accessible to him so no lifting carpets, checking wiring. A survey will also provide a market valuation and an insurance rebuild cost.

How does it work?

The survey will give a traffic light condition rating in order of severity and reveal any unwelcome hidden issues inside and outside the property. The traffic light condition rating is as follows:

Green 1. No repairs and no areas of concern
Amber 2. Areas with defects which might need repair or replacement but not considered urgent and unlikely to affect value
Red 3. Defects in urgent or serious need repair or replacement – these are matters that may need further investigation

Should I get a home buyer survey?

A home buyer survey is not a legal requirement. However, the mortgage valuation your lender carries out is not a full valuation. It is only to ensure the property is sufficient for lending purposes. A house purchase is expensive, and you need to know what you are buying and be aware of any future costs. A survey will cost approximately £400\£500 and you as a buyer will pay the cost.

You need to ensure the survey is carried out by a qualified RICS surveyor. The surveyor will contact the estate agent selling the property, who will contact the seller and arrange an appointment for a surveyor to inspect. It is vital to know the condition of the property you are buying to ensure it is structurally safe and that there will be no costly repairs. You need to ensure you have enough funds in your savings pot to meet any future repairs and know whether the works will cause you upheaval once you move in.

What happens when I receive my survey result?

Don’t panic! It is not uncommon to find defects in older properties. It can be upsetting when you are looking to buy your dream home. If you have any concerns, speak to the surveyor and your conveyancer. You should also speak to the estate agent and show them the relevant pages of concern in the survey report. Tell the estate agent you wish to carry out further investigations. The estate agent may recommend some local experts e.g. a roofer, damp expert, or builder or you can ask friends and family for recommendations of trusted trades people. The estate agent will speak to the seller to arrange quotations for any works that need to be carried out. Most experts do not charge for a quotation.

Next step?

When you receive your additional expert reports you will need to discuss the result with the estate agent who will negotiate an amended price with your seller. Most sellers will compromise and lower the price. If the work is too much you may need to “walk away” from the property. And if the price is reduced as a result of the survey, you will need to report the new price to your mortgage lender. If work is needed, then you will need to ensure you have adequate funds to carry out the work following completion, plus a little bit more to cover anything unexpected.

https://www.ricsfirms.com/media/1186/rics-consumer-guide-home_surveys-2018.pdf

If you have any further queries about buying or selling a house, our Frequently Asked Questions might help or alternatively, feel free to give me a call on 01332 364436.