Buying a house is a significant milestone in anyone’s life. It’s exciting, but it can also be a bit daunting, especially when it comes to understanding the ins and outs of the process.
One crucial aspect of buying a house is organising a home survey.
But who exactly is responsible for this task? This article aims to answer this question and provide you with a comprehensive understanding of the home survey process.
The importance of a home survey
Before we go into who organises a home survey, let’s first understand what a home survey is and why it’s so important.
A home survey is a detailed inspection of a property’s condition. It’s conducted by a qualified surveyor who checks for potential issues such as structural problems, damp, and even pest infestations.
Why is this important?
Well, imagine buying a house only to discover later that it has serious structural issues that will cost thousands of pounds to fix. A home survey helps you avoid such unpleasant surprises. It gives you a clear picture of the property’s condition, allowing you to make an informed decision about whether to proceed with the purchase, negotiate the price, or pull out of the deal altogether.
Who is responsible for organising a home survey?
In most cases, the responsibility of organising a home survey falls on the buyer. (yes that’s you!)
This is part of what’s known as ‘Property Due Diligence’. Due diligence is a principle that applies not just to property, but to all types of purchases.
It means that it’s your responsibility as the buyer to do as much research as possible about the property you’re planning to buy.
In the context of buying a house, due diligence involves researching the property’s history, understanding the local market conditions, and, importantly, organising a home survey.
By doing so, you’re protecting yourself from potential issues that could cost you a lot of money in the future.
What happens if you don’t do anything?
The default position is for the lender to instruct a basic Mortgage Valuation Report only.
The role of the mortgage lender
If you’re buying a house with a mortgage, your lender will also play a role in the home survey process.
Mortgage lenders always require a basic mortgage valuation to confirm the value of the property. This is to ensure that the property is worth at least the amount they’re lending you (and it’s not just a pile of bricks). If you default on your payments and the lender needs to sell the property, they want to be sure they can recover their money.
However, it’s important to note that a mortgage valuation is not the same as a full home survey.
A mortgage valuation is primarily concerned with the value of the property, not its condition. It won’t uncover potential issues like damp or hidden structural problems. That’s why it’s so important for you, as the buyer, to organise your own independent survey.
Types of home surveys
There are several types of home surveys available in the UK, each offering a different level of detail:
Condition Report
This is the most basic type of survey. It provides an overview of the property’s condition and highlights any significant issues. It’s most suitable for newer properties in good condition.
Homebuyer Surveys
This is a more detailed survey that not only assesses the property’s condition but also provides advice on repairs and maintenance. It’s suitable for both modern and older properties.
Structural Surveys
Also known as a building survey, this is the most comprehensive type of survey. It provides a detailed analysis of the property’s condition, including the structure and all major and minor defects. It’s particularly useful for older or non-traditional properties, or if you’re planning significant renovations.
Valuation Surveys
This type of survey is primarily concerned with determining the value of the property. It’s often required by mortgage lenders but doesn’t provide a detailed assessment of the property’s condition
HELPFUL LINKS
https://www.ricsfirms.com/residential/moving-home/buying/helping-you-choose-the-right-survey/
The cost of a home survey
The cost of a home survey will vary depending on the type of survey you choose and the size, value and age of the property.
Here’s a rough guide to what you might expect to pay:
- Condition Report: This is the cheapest type of survey, typically costing between £100 and £250.
- Homebuyer Surveys: These surveys are more detailed and therefore more expensive, usually costing between £250 and £600.
- Structural Surveys: As the most comprehensive type of survey, these tend to be the most expensive, typically costing between £500 and £2,000.
- Valuation Surveys: The cost of a valuation survey is often included in your mortgage lender’s fees, but if you need to organise one independently, you can expect to pay between £150 and £1,500, depending on the value of the property.
- While these costs may seem substantial, it’s important to remember that a home survey can save you money in the long run. If it uncovers serious issues with the property, you could use this information to negotiate a lower price, or decide to avoid a costly mistake by not proceeding with the purchase.
You will find more useful information in our: “Guide to Mortgage Fees“
In the next section of this article, we look at the process of organising a home survey, the benefits, and finally, we will wrap up with some concluding thoughts.
The process of organising a home survey
Organising a home survey is a straightforward process, but it’s important to do it right.
Here’s a quick guide:
Find a Registered Surveyor: The first step is to find a surveyor who is registered with a recognised body such as the Royal Institution of Chartered Surveyors (RICS). This ensures that they are qualified and adhere to professional standards.
Choose the Type of Survey: Based on the age, condition, and type of property you’re buying, decide which type of survey is most suitable. If you’re unsure, your surveyor should be able to advise you.
Get a Quote: Contact the surveyor to discuss your needs and get a quote for the survey. It’s worth getting quotes from some different companies to ensure you’re getting a fair price.
Book the Survey: Once you’ve chosen a surveyor, you can book the survey. They will arrange a suitable time with the seller or the seller’s estate agent.
Receive the Survey Report: After the survey has been conducted, the surveyor will produce a detailed report. This should be sent to you within a few days to a week of the survey.
Property Survey Guide
Mortgage valuation or homebuyers report? Our guide explains what the different types of surveys are and how they work.
Types Of Houses
Our guide covers the different types of homes, from studio flats to detached houses, and everything in between.
Applying For A Mortgage
We explain what happens at each step, including what documents are needed and how a broker can help.
The benefits of a property survey
Conducting a property survey has several benefits that extend beyond the immediate purchase decision. These benefits can have a lasting impact on your financial situation and overall satisfaction with your new home.
Uncover Hidden Issues
One of the primary benefits of a home survey is its ability to uncover hidden issues with the property.
These issues may not be immediately apparent during a casual walkthrough or viewing. A professional surveyor, however, is trained to spot potential problems that the untrained eye might miss.
This includes structural problems such as cracks in the walls or foundation, dampness that could indicate a leak or poor insulation, or signs of pest infestations like woodworm or termites.
By identifying these issues before you buy, you can avoid the unpleasant surprise of discovering them after you’ve moved in.
Avoid Unexpected Costs
Another significant benefit of a home survey is the potential to avoid unexpected repair costs after you’ve bought the property.
If a survey uncovers potential issues, you can factor the cost of these repairs into your budget before you commit to the purchase. This can save you from the financial stress of having to deal with costly repairs down the line.
For example, if the survey reveals that the property needs a new roof, you can either budget for this expense or negotiate with the seller to have it fixed before you buy. Or it might conclude that it uses a non-standard construction method, which could restrict your choice of lenders and affect the ongoing maintenance.
Negotiate a Lower Price
If the survey uncovers issues with the property, you may be able to use this information to negotiate a lower price.
This is particularly true for more significant issues that will require costly repairs. Sellers are often willing to lower the price rather than deal with the hassle and expense of fixing the problem themselves.
This can result in substantial savings, making the cost of the survey well worth it.
Peace of Mind
Perhaps the most intangible but important benefit of a home survey is the peace of mind it provides.
Buying a home is a significant investment, and it’s natural to feel a bit anxious about the decision. A home survey can alleviate some of this anxiety by providing you with a comprehensive understanding of the property’s condition.
Knowing that a professional has thoroughly inspected the property and identified any potential issues can give you the confidence to proceed with the purchase, secure in the knowledge that you’re making a sound investment.
Final thoughts
Organising a home survey is a very important part of the home buying process.
While it’s the buyer’s responsibility to organise the survey, it’s in their best interest to do so. A home survey can uncover potential issues with the property, help avoid unexpected costs, and even provide leverage to negotiate a lower price.
The process may seem daunting and expensive, especially for first-time buyers, but it’s mostly quite straightforward. And with the help of a qualified surveyor, you can work through the process with ease and confidence.
Remember, buying a house is likely one of the biggest investments you’ll ever make. So it’s worth taking the time to do your due diligence and ensure that your investment is a sound one.
PS. While your mortgage broker is not trained to know about surveys, they can explain the main differences and provide some guidance on your choices. Just ask!
