Four in five buyers don’t bother with home survey
Thousands skimping on checks for costly faults
HUNDREDS of thousands of homebuyers will move over the next year without bothering to find out if their next property is in good condition.
This is because most buyers do not know about or are not willing to pay for a survey.
Most believe that their mortgage lender’s standard valuation is sufficient, although it says nothing about the building’s state of repair.
And of those who do commission an independent survey to ensure there are no serious faults with their future home, the majority opt for a cheaper type that can miss crucial details.
Experts say the problem m could be compounded if a push h to introduce Scottish-style e ‘home reports’ to England and d Wales is successful. Scottish h sellers must pay for one when n they market their home.
But they have been recom- mended for the wider UK K property market in an independent report, commissioned earlier this year by the Royal Institution of Chartered Surveyors and authored by former MP and chair of the UK Valuation Commission, Dr Oonagh McDonald.
Results of a consultation looking at the effectiveness of Home Reports in Scotland over the past five years are due at the end of the year.
A Home Report is made up of three elements: an energy report; a property questionnaire, which is completed by the seller and includes information about improvements or changes; and a ‘single survey’ that assesses a home’s condition and market value.
But despite the latter being labelled as a ‘detailed survey’ of the home, some critics say they could go the way of the short-lived Home Information Packs, which were introduced in England and Wales in 2007 and scrapped in 2010 after they failed to live up to their promise.
There is also concern that Home Reports automatically sold with the property would dampen enthusiasm among buyers to pay for a more detailed inspection. Currently only one in five buyers pays for a survey before making a purchase, despite the fact that any negative findings could be used to negotiate a lower price with the seller. If you do pay for a survey you can choose from four options:
Condition report
Advantages: Concise ‘entry level’ survey. It operates a traffic light or 1-2-3 system to rate aspects of the property, with a red light or three emphasising serious defects. It should sh flag up problems regarding re structural movement as well as damp or woodworm.
Disadvantages: It is not ex exhaustive and may signpo post areas needing attentio tion without detailing what repairs are needed. Neither a property valuation, nor professional advice from a surveyor following the inspection, is included.
Price: From about £300. Advantages: It is cheaper than a full structural survey and offers detailed information. Like the condition report it comes with a rating system for the property and is likely to include professional support or further explanation from the surveyor
Homebuyer report
after the inspection. It is most suitable for properties built in the past 100 years.
Disadvantages: It can sometimes appear as a ‘buck-passing’ exercise, shifting responsibility to the buyer by advising them to carry out further investigations. Richard Sexton of esurv, a network of chartered surveyors, says: ‘Surveyors are generalists not specialists, so they will suggest buyers refer to particular experts. But it can identify a problem such as dry rot or movement.’
Price: Typically £400 to £600.
Building survey
Advantages: The most comprehensive survey and recommended for older, period, listed or unusual properties. It will provide detailed information about the condition of a home, highlight defects and offer advice on repairs and maintenance.
Disadvantages: A full structural survey is the most expensive option. It is also a detailed and technical report, which most people would have trouble understanding without professional guidance.
‘Establish with a surveyor before the inspection that he is willing to take questions afterwards and go through the document to explain the real issues over the minor ones,’ says Sexton.
Price: Around £1,000.
Snagging survey
Advantages: This will pick up on any poorly finished work or faults in a new-build property, such as shoddy plastering or paintwork. There is little need for a detailed survey on a new-build home, which is covered by a ten-year guarantee from the National House Building Council.
Disadvantages: Developers might be in less of a hurry to fix problems if the survey is carried out after completion of the purchase.
Price: Typically £200 to £300.