What type of house survey do I need?
Many potential homebuyers will want a house survey carried out on the property before completing the purchase. There are a few options to choose from when it comes to inspections each with their own benefits. So, we will be looking at each type to help you decide which option may be best for you.
What is a house survey?
Firstly, a house survey is an expert inspection of a property’s condition. It will identify problems to a prospective buyer and help them to decide if they would like to proceed with the purchase or not. It is normally arranged by a prospective buyer once an offer price has been agreed with the seller. Although in some cases a survey can be carried out before an offer is made provided that the seller agrees to allow it.
The inspection is completed by a surveyor who visits the property, carries out their checks and prepares a report on what they’ve found. This report can either cover just the basic points or provide a detailed structural assessment of the building. It will depend on the level and complexity of the survey ordered.
Before commissioning a survey, check that the surveyor is a member of one of the two main accrediting bodies: RICS (Royal Institution of Chartered Surveyors) or RPSA (Residential Property Surveyors Association).
Finally, a survey is entirely optional, but it could save you a lot of money and hassle in the long run.
Today we will cover:
Types of house survey.
The type of house survey you need will depend on the age and general condition of the property you are looking at buying.
Generally, most buyers choose a mid-level survey (such as the RICS Home Survey – Level 2 or RPSA Home Condition Survey). However, for older properties or those which have been heavily modified in the past, a more comprehensive survey may be recommended.
RICS Home Survey – Level 1
This is the most basic type of survey. It will give the buyer an overview of the property condition and highlight any major issues. However, it won’t go into much detail or provide rectification recommendations/costs. Each element will be rated on a traffic light scale with green being fine, amber being acceptable but likely to need attention in the near future, and red being something to look into immediately.
A Level 1 survey is suitable if you’re looking to buy a standard, modern property in good condition. It should confirm general condition is as you see it but also highlight any major unseen faults which may require further investigation. A property of around 50-60 years old or less should benefit from this type of report. You can download an example report on the RICS website.
Typical time to complete – 1 hour – Report to follow in 3-5 days.
Home Survey – Level 2/RPSA Home Condition Survey
A mid-level survey is the standard choice for most properties in reasonable condition. It expands on the Level 1 survey by highlighting problems that might affect the value of the property or its resale-ability. This report will include the surveyor’s advice on repairs and ongoing maintenance. It also highlights ongoing issues such as damp and subsidence plus anything that may not meet current building regulations.
The inspection is non-intrusive This means the surveyor won’t look behind furniture or under floorboards. They will only be able to identify easily visible problems. You may find that items underground such as pipes are automatically given a red rating. This is something to take with a pinch of salt as they have not physically been inspected. They will be assumed to be in poor condition regardless, even if they have only just been installed.
You can download an example of the RPSA Home Condition Survey on their website here.
Typical time to complete – 2-3 hours – Report to follow in 3-5 days.
Home Survey – Level 3/RPSA Building Survey
This is the most thorough type of survey. It provides a comprehensive analysis of both the property’s structure and condition.
A Level 3 survey is a recommended option if you plan to buy a property over 60 years old, constructed of non-standard materials, or in poor condition. Likewise, if you plan to make significant alterations to the house at a later stage, the Level 3 survey may be able to offer you guidance in this respect. The surveyor can also provide a cost analysis for rectification work and provide timings on any remedial tasks.
To provide the level of detail required, a surveyor may remove easily accessible fixtures in order to gain the best possible view. This includes removing floorboards, taking samples, photographs and by viewing the property from a higher vantage point.
Typical time to complete – 1 working day – Report to follow in around 10 – 14 days.
My mortgage lender is arranging a valuation. Is this a survey?
No. A mortgage valuation is normally provided free of charge (or at a low fee) as part of your chosen mortgage product.
The basic report commissioned by the mortgage lender checks that the property is suitable security for its loan. It will only provide a market valuation assessment and highlight only the most obvious severe problems. Most of the time a property valuation is carried out remotely either by a drive-by view, or from a desktop assessment. Therefore, the report is very sparse and purely for the lenders benefit. In fact, most lenders retain access to the report and will not release it to the buyer.
Some mortgage lenders allow buyers to upgrade to a more in-depth survey in line with those mentioned above. However, it may be worth comparing the costs and survey types to those offered from a local independent firm before agreeing to upgrade.
- How to overcome a mortgage decline.
- Do I really need a mortgage broker?
- Mortgage Pirate guide for first time buyers.
What are the benefits and drawbacks of a house survey?
Benefits:
- Peace of mind.
Allows you to fully understand what you are buying into so that there are no nasty surprises later. - May save money.
Issues found can be used to help negotiate a lower asking price for the property. Alternatively, the seller can be asked to pay for and carry out repairs before contracts are exchanged. - Can help you plan for the future.
If you plan to improve or extend the property in the future, a suitable report will be able to confirm if this is possible and provide estimated costs. - Separate from the mortgage company.
The report is for the buyers benefit and should not affect the ability of a lender to lend.
Drawbacks:
- Cost.
The cost of a survey depends on the level of detail required and the value/size of the property. With prices for a Level 1 survey starting at around £450 and increasing to upwards of £1,500, not everyone can afford a survey. - The perfect property does not exist.
Almost every property will have its faults. Even brand new builds will have snagging issues. Read the report carefully and adjust your expectations to fit alongside your requirements. A-400-year old cottage is not going to have green traffic light grading on every category. - Some defects can still be missed.
Even the most in-depth inspections can miss things. Check what your terms and conditions are with the surveyor for any problems this may cause. - Be careful to instruct the right survey on the right property.
Flats aren’t really going to need a level 3 survey as they are part of a larger building. Likewise, neither are new build houses. Be mindful to only pay for the service that suits the property and your requirements.
Instructing a surveyor.
Simply search Google for a local firm or check out the websites for RICS and RPSA approved contacts in your area.
Conclusion.
Arranging a house survey is recommended in almost all cases. The initial outlay could save you a lot of money and hassle in the long term. It could also stop you from buying a complete lemon and being unable to sell it in the future. Apart from the cost there aren’t really any major downsides.
Share your experiences of house surveys using the comment form below.
Post compiled by Grant Carpenter CeMAP, CeFA – 15 years of regulated mortgage advice.
Please note that the content listed within this post is purely for information purposes only and does not constitute advice.
