Property surveys – a meaningless hold-up to the buying process and several hundred pounds down the drain, right? If you find yourself nodding, you’re not alone. According to RICS (that’s the Royal Institute of Chartered Surveyors), 80% of buyers simply don’t bother with a survey because they don’t see the value in it.
As with many things, just because a lot of people believe it, doesn’t make it true. If you’re on the cusp of purchasing a property and are comfortable with your reasons for not getting a survey, make sure they don’t appear on the list below before signing on the dotted line.
- You’re already getting a mortgage valuation.
Despite the best efforts of surveying firms all over the country, it seems that the confusion between mortgage valuations and property surveys prevails. Let’s try once more to clear it up.
Banks commission mortgage valuations to ensure that the property is worth the amount that they are lending you for it. This isn’t for your benefit in the slightest; it’s so they know they can recoup their losses if they have to repossess the house. Once the valuation has been completed, your lender will agree to proceed with their original loan offer, or reduce it. Even if the property is down-valued, the surveyor is under no obligation to disclose details about faults they may have found.
A property survey is carried out on your behalf. Its purpose is to discover structural faults within the building and inform you about how to deal with them in the report. The amount of detail it goes into depends entirely on the level of survey that you choose.
- The house (or flat) looks absolutely fine.
In the UK, the housing market operates under a “buyers beware” policy. That means that the seller doesn’t have to take any responsibility for disclosing long-term defects or damaged areas that will be expensive to repair. It’s entirely up to the buyer to hunt these out before the purchase or to suffer the costs of setting them right once they have the keys.
It’s not just the physical property, either. All levels of RICS surveys will investigate the legal aspects of the property. These typically include checking for past boundary disputes, leasehold terms, and that any planning permission or Listed Building Consent has been obtained for modifications.
Are you an expert in the kind of property you’re buying? Do you know which materials are likely to be reaching the end of their lifetime, or how to safely access difficult to reach areas? Can you track down the leasehold information? Chances are, probably not. Find a qualified professional, from a firm like Able Surveyors to help you fully understand the property.
- You’ve already agreed on the sale price.
Some buyers don’t see the value in a survey because they have already agreed a sale price with the current owners. There is no point in commissioning a report, because they aren’t in a position to re-negotiate the price anyway.
Don’t forget that nothing is set in stone until you have exchanged contracts. If an expert finds a serious defect with the property then you are well within your rights to re-negotiate the sale price, based on the new information. If you’re not comfortable haggling over money, then you can arrange for the seller to complete any repairs before moving out (make sure it’s a clause in your contract), or choose to walk away entirely if you’re not prepared to deal with the issue.
- The house is brand new.
New homes are built by humans, and humans make mistakes. While there may not be any serious problems with your new home, there are two kinds of survey that will set your mind at rest when you move in.
The first is a RICS Condition Report, which provides a snapshot of the state of your property and details any risks associated with the purchase of the property. The second is a professional snagging list, which is for after you move in. This will catch all the little flaws around the property, from chipped paint to items that are different from your promised specification.
All new-build homes are sold with a 10-year NHBC warranty, but this will only cover minor and major defects in the first 2 years. If you discover a problem in a home older than 2 years, the NHBC won’t necessarily cover the repairs.
- The house has already stood for hundreds of years.
It should go without saying that an old house might not be as sturdy as it looks. Damage from damp, subsidence and poorly-made alterations all take time to take hold, and might not be immediately apparent at a glance. A surveyor will be able to tell you how well original materials have been looked after, or if you’re about to have the keys to a very expensive wreck.
- Surveys are expensive.
Surveys range from a few hundred pounds to a few thousand, depending on how in-depth it is, as well as the size and value of the property.
Put the price into perspective by comparing it against what you might pay to fix a problem that the survey would have spotted. According to a RICS consumer survey, 20% of homeowners that chose against getting a survey ended up forking out an average of £5,000 on remedial work – and severe defects can cost a lot more.
Sure, surveys can seem like a lot of money, particularly if you pay for a thorough report that comes back with an “all clear”… but how much is a good night’s sleep worth to you?
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