Buying a home is often dubbed a stressful experience, and worrying about the condition of the property and hidden defects that may lead to a huge bill could be one of the reasons. Commissioning a property survey is one step that could give you confidence in your purchase.
A home survey offers an expert account of the property’s condition. It’ll highlight any problems with the property using a traffic light system, so you can easily see which issues might require immediate attention.
While a survey might seem like an added fee, a property is often one of the largest purchases you make. So, having a professional review of the condition of your home could put your mind at ease.
In England, Wales, and Northern Ireland, you don’t have to pay for a survey before you buy a property. However, it’s often recommended.
In Scotland, the process of buying a house is different. Any house that’s for sale must have a Home Report, which includes a Level 2 survey, as well as additional information. Prospective buyers can then view this report before putting in an offer. You may decide to pay for a Level 3 Home Survey separately.
The Royal Institution of Chartered Surveyors (RICS) offers three levels of home surveys.
1. Level 1 Home Survey
The Level 1 survey was previously called a “Condition Report”. It is the least comprehensive type of survey and will typically be the cheapest.
The report you receive will describe the condition of the property and highlight any urgent defects or risks. However, it usually won’t provide advice on how to manage the potential issues raised. RICS recommends this survey if the property is relatively new, in good condition, and is built using conventional materials.
2. Level 2 Home Survey
A Level 2 survey is advised for conventional properties that are in a reasonable condition.
As well as highlighting potential defects, it’ll provide ideas about future repairs or maintenance that may be required and offer more detailed information about the property.
You may also choose to include a valuation in your Level 2 survey. This could be useful if you’re unsure about the market value and help you select the right level of home insurance.
3. Level 3 Home Survey
Finally, a Level 3 survey is the most comprehensive survey report. It will provide an in-depth analysis of the property’s condition and advice on defects and maintenance options.
If you’re purchasing an older or run-down property or a building that’s unusual or altered, RICS recommends choosing this option. In addition, if you plan on undertaking a major renovation project, the report may provide useful information and help you better assess the extent of the work you’ll carry out.
Your options if the survey is “bad”
A property survey could save you time and stress, but you might also worry about what will happen if it’s “bad”. The good news is that you have options.
On receiving the report, you might want to commission a further survey to gather additional information or ask the surveyor to look at a particular concern in greater detail. You could also contact builders or specialists if you want to understand the potential costs of repairs or maintenance work.
If you want to go ahead with the purchase of the property you could:
- Ask the seller to fix the issue before you proceed with the purchase
- Negotiate the price of the property to account for the cost of the work that will need to be carried out.
Finally, of course, if the survey reveals problems that you don’t want to deal with, from damp to an old heating system, or the seller isn’t willing to negotiate you could pull out of the purchase. It can be a difficult decision, especially if you thought you’d found your dream home, but it may be right for you.
Contact us to talk about a mortgage that suits your needs
A survey is just one of the steps you might take when you’re buying a new home. Securing a mortgage may also be on your list of tasks to complete, and it’s one we could help with.
As a mortgage adviser, we could work with you to understand your mortgage needs and find a lender that’s right for you. Working with us could relieve some of the stress you might experience when buying a home and even save you money by securing a mortgage with a competitive interest rate.
If you’d like to talk to one of our team, please get in touch.
Please note:
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.