Understanding surveys and valuations

When purchasing a property, surveys and valuations are essential to your buying journey as they provide insight into the property's condition and value. Understanding the different types of surveys, why they are crucial, and how to respond to the results can help you make informed decisions and avoid costly surprises.

Types of Property Surveys

There are several types of property surveys, each serving a different purpose. Below is an explanation of the three main types -

Mortgage Valuation

Your mortgage lender requires this to ensure the property is worth the amount they lend you. This is not a detailed survey; it won't highlight any potential structural problems or repairs needed, so getting an additional survey is essential if you're concerned about the property's condition.

Homebuyer Report (Level 2 Survey)

It provides more detail than a mortgage valuation and is suitable for properties that are in reasonably good condition and built after the 1900s. This survey covers the property's general condition, identifies any visible issues like damp or structural defects, and offers advice on necessary repairs.

Complete Building Survey (Level 3 Survey)

This is a more thorough and in-depth inspection of the property, particularly for larger homes or properties with known issues. It examines the property's visible and hidden aspects, such as the roof, foundation, drainage, and any structural concerns.

Why Surveys are important

Property surveys are essential as they help buyers identify potential problems, assess repair costs and ensure the property is a good investment. They also assist with negotiation, so you can use this information to renegotiate the price or request the seller to make repairs before completion. This can save you money or prevent you from inheriting expensive repair bills.

Responding to survey results

Once you receive the survey results, the next step is deciding how to respond. Here are some expected outcomes and how to handle them:

No significant issues were found - so you can proceed with the purchase as planned. Budgeting for regular maintenance is still advisable, but there shouldn't be any immediate concerns.

Minor issues identified -  cosmetic damage or small repairs; consider whether you're comfortable taking these on after purchase. 

Significant issues found - in the survey uncovers serious problems, such as structural damage, roof issues, or dampness, you have several options:

Renegotiate the price: negotiate a lower purchase price to account for the cost of repairs

Request repairs: ask the seller to fix the issues before the sale is completed.

Reconsider the purchase: if major defects appear that are too costly or difficult to repair, you may walk away from the purchase. While this can be upsetting, it's often better than investing in a property that could become a financial burden.

To conclude, surveys are a critical step in home-buying, giving you valuable insights into the property and protecting you from unforeseen problems. By understanding the survey results and responding appropriately, you can move forward with confidence in your purchase.