Property Surveys – A Layman’s Guide
Firstly, let me be honest and say up front that I am NOT a
surveyor or a member of the Royal Institute of Chartered Surveyors (RICS), so
much of what follows is simply my opinion – BUT, as an Estate Agent with over
30 years industry experience, I have read many thousands of surveys on every
type of property that you can imagine – so I will have a certain perspective!
Whilst it is quite common for people to ask their estate
agent what sort of survey they should have, just occasionally people do ask
whether they should have a survey done at all on a property they’re
buying. In that, in my experience, the person asking me such a question is
invariably buying from my Company, this query puts any agent in an awkward
position – where, even if you think that a survey would be a total waste of money,
as an “interested party” (after all we’re earning a fee from the sale) it would
be incredibly dangerous to suggest that a client shouldn’t have a survey done,
even for example, if the property in question was only 1 year old! Just imagine
the headlines if someone accepted an estate agent’s word that the property was
“sound”, and subsequently found out that this wasn’t the case! It simply
doesn’t bear thinking about!
So, the first “rule of thumb” when buying a property is
simply: Always have a Survey! An
independent, professional pair of eyes looking over your purchase with the sole
intention of protecting you from making a mistake can hardly be regarded as a
“bad thing”, regardless of the cost.
In addition, almost all surveys will also incorporate a
“valuation” on the property – again giving an independent perspective on the
“real value” of your purchase. Especially is market places such as the current
one, where property is effectively being auctioned to the highest bidder, it is
easy to get carried away and over-bid for a property that’s taken your eye –
having a survey will at least confirm
the real market value, and allow you to make an informed decision about
proceeding!
Largely though, buyers ask about what sort of survey that we
recommend – so it might be helpful to have at least a basic understanding of
what “surveys” are available, and what they will actually give you.
First though, you have to always remember that ANY sort of survey
is a “critical” document. The surveyors job is NOT to comment on the
neighbourhood or local schools, or tell you how lovely the property is – he/she
is attending the property to pick up and report EVERY defect, issue or blemish
to ensure that you are fully briefed on what you are purchasing. The question
of how much depth the surveyor goes into depends on the type of survey that you
commission – but know this – survey reports can be quite frightening,
especially if you’re not experienced in reading such documents!
So – what are the basic types of survey?
- A Mortgage Valuation is the most basic
types of survey – and I’m sure that some surveyors would argue that this isn’t
actually a survey! Although the mortgage valuation is paid for by the
purchaser, the mortgage valuation is done more on behalf of the Building
Society that the buyer is borrowing money from. The surveyor’s primary concern
during the visit is simply to ensure that the property is “adequate security”
for the loan being requested – so, as the name suggests, establishing a
sensible market value for the property is the main objective of this visit. It
stands to reason that the surveyor attending will be “on the lookout” for major
issues, such as structural movement or subsidence, as this would adversely
affect the Building Society’s desire to lend on the property – but it’s a
fairly cursory survey, often taking between 10 minutes and 45 minutes depending
on the size of property being inspected. The cost of a mortgage valuation is
generally between £200 - £400.
- A Homebuyers/Flat Buyers Report is the
mid-range survey that most buyers seem to favour because of cost but this can
be a “false economy”. At around £400 - £750, this is considerably cheaper than
a Full Survey, but this is largely due to the fact that the surveyor will be at
the property between 2 – 4 hours. Whilst this type of report will give you both
a valuation and a fairly “in depth” picture of your purchase, the Estate
Agent’s general concern about the Home Buyers reports is simply that, because
the Surveyor is only on site for around 3 hours, he/she will refrain from
commenting on specifics in several areas. For example, many Homebuyers Reports
seem to end up recommending a specialist Timber & Damp survey, an
Electrical Survey, a Gas/Central Heating Check and/or a Roofing Report. This does not necessarily mean that that
any of these ARE issues – in recommending that you have a specialists look
into them, the Surveyor has covered himself against any future claims – but the
report can be extremely worrying for the inexperienced buyer. Generally, it
would be advisable to get your estate agent, solicitor or a more experienced
buyer to “interpret” what the Surveyor is saying. Although though overall
Homebuyers reports are good value for money - unless you end up paying around
£120 each for individual specialist reports – in which case, you might just as
well have paid for a full survey instead!
- Full “Structural” Survey – this is the
“Rolls Royce” of surveys, with the surveyor spending 4 - 6 hours at the
property, giving you a full and detailed view of any problems. Unlike the
Homebuyers report, the full structural report is often more “defined” with more
finite information about likely problems.
Often providing a “valuation” of the property, the only real issue with the
full survey is cost. Often costing £600 - £1000+, it’s obvious why buyers will
be attracted to the homebuyers reports -
but for older style properties (Victorian or older), properties needing
refurbishment or properties “in distress”, a full structural survey really is
highly recommended.
There are, of course, other types of survey, but these three
are the main choices for most buyers. If in doubt, speak to your estate agent,
solicitor or to a RICS surveyor for further information and advice.