Thanks to the Stamp Duty Holiday extension, the UK housing market isn’t seeing the dramatic downturn that was expected at the start of last year. If you’re one of the millions who’s put in an offer recently then you may be wondering if getting a survey is worth the extra hassle – and cost.
What is a survey?
A house survey or home buyers report is an inspection of the condition of a property carried out by a qualified expert. They will highlight any structural issues or defects with the property. And the document will detail the findings with a traffic light system. Green meaning there are no problems, amber meaning there is an issue that will need resolving in the future, and red meaning it needs fixing sooner rather than later.
Surveys are carried out once you’ve made and had an offer accepted on a property. Whilst they aren’t a legal requirement, they can help with negotiating a lower purchase price, as well as highlighting any costly repairs you may not have budgeted for in your initial offer.
A survey can cost any from £400 – £1500 depending on the type of survey and the age of the property, so it’s important to budget when factoring in your offer.
Why it’s important to get one
Your mortgage provider’s valuation is NOT a survey – If you require a mortgage, your lender will arrange a valuation in which an expert will assess if the house you are buying is worth the price you have offered. It does not assess the condition of the home. Often a mortgage valuation is a desktop valuation, whereby the lender will merely look at properties that are similar who have sold in the area and compare the purchase prices.
Not getting one costs more in the long run – Surveys highlight any defects that may not be immediately obvious when viewing a property. There could be hidden issues such as structural damage, wet or dry rot, and problems with the roof. According to the Royal Institution of Chartered Surveyors (RICS), buyers who didn’t get a survey faced on average £5,750 worth of repairs when they moved in and 17% of these ended up paying more than £12,000 on average to make their homes habitable.
Help with renegotiation – If the survey shows there are a number of expensive repairs that are required, it can help in renegotiating on the purchase price. By decreasing the purchase price, you’ll have more money to do the repairs. Alternatively, you could ask the sellers to fix the issue before you complete the purchase. Any repairs undertaken will ideally have certification or warranties, or an indemnity policy may be required.