Essential Guide to the House Buyers Survey: Types, Costs, and Benefits

Buying a house is one of the most significant financial decisions you’ll ever make. As exciting as it is to envision your future in a new home, it also comes with its fair share of risks. One of the best ways to mitigate these risks and ensure you’re making a sound investment is by having a house buyers survey done before committing to the purchase.

What Is a House Buyers Survey?

A house buyers survey is an inspection carried out by a professional surveyor to assess the condition of a property before you buy it. The purpose of the home buyers survey is to identify any potential problems or hidden issues that may not be immediately obvious to the untrained eye. This can range from structural issues like foundation cracks to damp problems or faulty wiring.

While a survey is not a mandatory part of the home-buying process, it is highly recommended. A survey gives you a better understanding of the property’s condition and can help you avoid unpleasant surprises after you’ve moved in.

Types of House Buyers Surveys

When it comes to house buyers surveys, there are several different types to consider. The level of detail and cost can vary depending on which one you choose. The three most common types of surveys are:

1. Condition Report
• What it includes: This is the most basic type of survey and is typically recommended for newer homes or properties that are in good condition. It provides a summary of the property’s overall condition, highlighting any areas of concern in a traffic light system (green, amber, or red).
• What you’ll get: A brief description of the property’s condition, including an assessment of any structural issues, damp problems, or defects in the property’s major systems (e.g., plumbing, electrics).
• Cost: Generally the cheapest option, with costs starting at around £250 to £400 depending on the size and location of the property.
2. HomeBuyer Report
• What it includes: This survey is more detailed than the Condition Report and is suitable for properties that are generally in good condition but may have some age or minor issues. It includes everything in the Condition Report, plus additional checks such as the roof, drains, and windows. The surveyor will also provide advice on repairs and maintenance.
• What you’ll get: A more in-depth analysis, including an assessment of the property’s energy efficiency, along with a list of defects and any potential risks to be aware of.
• Cost: A HomeBuyer Report typically costs between £400 and £1,000, depending on the size of the property.
3. Building Survey
• What it includes: This is the most comprehensive survey and is ideal for older properties, unusual buildings, or homes that appear to have structural issues. A Building Survey provides a detailed analysis of the property, including its structure, materials, and any areas that need urgent repair or attention.
• What you’ll get: A thorough inspection that covers everything from the foundation to the roof, as well as advice on necessary repairs and maintenance. If you’re purchasing a property with known issues or plan to make significant renovations, this is the best option.
• Cost: The cost of a Building Survey can range from £600 to over £1,500, depending on the property’s size, complexity, and location.

What is a House Survey?

• A house survey is an expert inspection of a property’s condition, identifying problems for a prospective buyer.
• It’s completed by a surveyor who visits the property, inspects, and prepares a report on findings.
• Home buyers typically have a survey done after their offer is accepted by the seller (but the system works differently in Scotland).
• Check that the surveyor is a member of one of the two main accrediting bodies, such as the Royal Institution of Chartered Surveyors (RICS) or the Residential Property Surveyors Association (RPSA).

Types of House Surveys

• The type of house survey depends on the age and condition of the property.
• Buyers commonly choose a mid-level survey (such as RICS Home Survey – Level 2 or RPSA Home Condition Survey).
• For older properties, a more comprehensive survey may be recommended.

Level 1 Home Survey

• This is the most basic type of survey, using traffic light ratings to give an overview of the property’s condition.
• It highlights significant issues but doesn’t go into detail.
• Suitable for standard, modern properties in good condition, built from common building materials.

Level 2 Home Survey

• A mid-level survey is the standard choice for most properties in reasonable condition.
• It looks at everything covered above, with added extras, highlighting problems affecting the property’s value.
• Includes advice on repairs and ongoing maintenance.
• Equivalent to a Homebuyer Report.

Level 3 Home Survey (Building Survey)

• This is the most thorough type of survey, providing a comprehensive analysis of the property’s structure and condition.
• Suitable for properties over 50 years old, of unusual design, or in poor condition.
• The surveyor will be ‘hands on’ and check the attic and under floorboards.

House Survey Costs

• The cost of a survey varies significantly depending on the location, size, and type of property.
• Get a few quotes before deciding who to use.
• Figures below give a rough idea of what you might pay depending on the property price.
• A house survey cost can range from £300 to over £1,500.

Benefits of a House Survey

• A survey can feel like an unnecessary expense, but it’s better to be aware of any problems before buying.
• Make an informed decision about how much to pay and budget for repairs.
• If major problems are uncovered, use the information to negotiate with the seller.
• A house survey report can also help you avoid costly surprises down the line.

Why You Need a House Survey

• A mortgage valuation is not a comprehensive survey and should not be relied upon.
• It’s a valuation ‘survey’ that may not even involve a physical inspection.
• Always arrange an independent survey after an offer is accepted.
• A house survey can help you identify potential issues and avoid costly surprises.

How to Find a Property Surveyor

• Check that the surveyor is registered with RICS or RPSA.
• Find surveyors through local listings, personal recommendations, or comparison websites.
• Be cautious of estate agents or mortgage lenders recommending a surveyor, as they may receive a commission.
• Look for chartered surveyors who are members of professional bodies.

What to Expect from a House Survey Report

• The surveyor will inform you how long they’ll take to provide the report.
• It shouldn’t be longer than five days (level one or two) or 10 days (level three).
• The report will include a valuation report, highlighting the property’s market value.
• It will also include a summary of the property’s condition, highlighting any defects or issues.

Further Investigations and Repairs

• Further investigations are recommended if the surveyor has not been able to assess the property fully.
• This might be because the surveyor needs to access the building in a different way to see the problem completely.
• Talk to the owner to ensure that they will grant access to allow the further investigation to be carried out.
• Get quotes from at least two experienced contractors before making a legal commitment to buy the property.

Home Surveys and Mortgage Valuations

• A mortgage valuation is a limited check on the property carried out by your mortgage lender to ensure it’s worth the money they’re lending to you.
• A mortgage valuation is for the benefit of the lender, not the home buyer/owner, and does not include the same level of detail as a survey.
• A house survey is a comprehensive service that provides an expert account of the property’s condition.

Final Thoughts

• A house survey is an essential part of the homebuying process, helping buyers understand the condition of the property.
• It’s recommended to get a survey, especially if you’re buying an older property or one that needs significant repairs.
• A house survey can help you identify potential issues, avoid costly surprises, and make an informed decision about the property price.

FAQs

1. Do I need a survey if I’m buying a new property? While new properties are generally in better condition than older ones, it’s still recommended to have a survey done, especially if it’s your first home. A Condition Report can help you identify any small issues that may arise, giving you peace of mind. Even new homes may have defects that need attention, so it’s always better to be sure.
2. Can I rely on a mortgage valuation instead of a survey? A mortgage valuation is not the same as a survey. While a mortgage valuation ensures that the property is worth the price you’re paying (for the lender’s benefit), it doesn’t assess the condition of the property. A house buyers survey, on the other hand, focuses on potential issues that could affect the property’s condition or value.
3. How long does a house buyers survey take? The length of a house buyers survey depends on the size and complexity of the property. A typical HomeBuyer Report or Condition Report may take a few hours, while a more detailed Building Survey can take a full day or longer. The surveyor will also need time to compile their report, which could take several days.
4. Can I get a survey after I’ve made an offer? Yes, you can have a survey done after making an offer, and in fact, it’s highly recommended to arrange a survey before you finalize the purchase. You’ll need to do this before exchanging contracts to ensure you’re fully informed about the property’s condition before committing.

What happens if the survey uncovers issues? If the survey uncovers significant problems, you have several options. You can renegotiate the price, asking the seller to fix the issues before completing the sale, or you can walk away from the deal entirely. If the issues are minor, you may decide to proceed and budget for repairs after moving in.

You can find more information on our website, Andrew Pridell Associates