Wealth warning: People sometimes pay more than they need to on surveys!
What type of survey?
In the last blog we looked at why a mortgage valuation isn’t a proper survey – essentially it’s just a quick look round to advise the bank whether the price you’ve agreed to pay is broadly in line with the market. The bank’s main concern is that they could get their money back if you stopped paying the mortgage and they repossesed the place.
So what exactly is a ‘proper survey’? There are two main types – the RICS Homebuyer survey and the full Building Survey. In both cases a qualified chartered surveyor will inspect the building from top to bottom, from the loft down to the drains (where visible). Each part of the building is reported on in turn, both inside and out, and any concerns flagged up.
A third type of survey known as Condition Reports are a budget report but provide very limited advice and may not be carried out by qualified RICS Surveyors.
People often ask for a ‘Full Structural Survey’ (the old term for Building Surveys). So the first question we ask at Rightsurvey is ‘what sort of property are you buying?’ For the vast majority of properties the less expensive Homebuyer survey, sometimes known as an ‘HBR’ is perfectly adequate, and costs nearly half the price of a more detailed Building Survey.
The surveyor should spot all significant defects, including structural problems, and advise you accordingly . The HBR can also include a valuation if required.
But for older period properties (generally those built before around1880), or rambling residences with impressive price tags, a Building Survey offers more scope for the surveyor to dwell in some detail on their encounters with defects.
In the past, confusion sometimes arose because Building Surveys used to be known as ‘structural surveys’ or ‘full surveys’. Perhaps not realising that less expensive Homebuyer surveys also report on a building’s structural condition, customers sometimes opted for the more expensive survey when not strictly necessary.
The downside of both reports is that they do not physically test services, such as the electrics and drainage (although they will give a visual opinion of condition). The reports conclude with a summary of urgent or significant defects and may advise further investigation.
In other words, the surveyor inspects the whole building and distils it down to a few areas of concern, providing an educated opinion as to whether these are typical for the type of property.
The next step is get some idea of the likely costs involved in remedying the highlighted defects, by obtaining specialist tests and reports, commonly on such matters as electrics, timber and damp, or cracking and major structural movement. (See ‘Specialist reports’ blog to follow shortly).
A more sensible system applies in Scotland. Here, at the outset, the seller pays for a three-tier home ‘Home Report’, which includes a ‘Single Survey’ along with the EPC and a property questionnaire.
Our next blog – coming soon …….
Choosing a surveyor
Check out our Rightsurvey blog page for more industry tips and secrets written by property professionals to help put you in control.