Property surveys – do you need a homebuyer’s report or a building survey?
The best way to make sure that you invest your money in a safe, structurally sound home is to carry out a property survey. So find out whether you need a homebuyer’s report or a building survey here.
Homebuyers should carry out
a property survey
Buying a property is one of the biggest investments you will make in your life, so why wouldn’t you want to make the most informed decision possible? But according to the Royal Institute of Chartered Surveyors (RICS), only around 20% of homebuyers commission some form of property survey before they buy.
The consequences of not carrying out a property survey can be disastrous; your new home could have hidden flaws which might mean you pay more for the building than it’s worth. You could also end up paying thousands in repairs and could even be jeopardising your health. That’s why the Council of Mortgage Lenders advises carrying out a homebuyer or building survey as well as the standard mortgage evaluation. But which type of survey should you choose?
Homebuyer’s report
This survey was designed by RICS and is also known as a homebuyer survey or valuation. Mike Crosscurth MRICS, from James Slater and Company in Gloucestershire says: “The homebuyer's report is carried out on a standard form prepared by RICS.” According to RICS, the homebuyer survey is best suited to modern homes in a reasonable condition as it isn’t a fully comprehensive inspection. The report rates the main areas of the property in terms of condition; a rating of three means the area is need of urgent repair, a rating of one indicates no action is required. The homebuyer’s report includes:
- An inspection of the general condition of the property and the major indoor features like the roof, walls and floors. The report will focus on major problems.
- An assessment of the state of any woodwork – checking for signs of woodworm or rot.
- A damp test on walls.
- An assessment of the condition of damp proofing, insulation and drainage (although drains are not examined separately).
- Suggestions for areas of further investigation.
- A valuation of the property and the cost of rebuilding it.
Sometimes referred to as a full structural survey, this is the most thorough property inspection you can commission and usually takes at least a day. As Mike emphasises: “A building survey is much more in depth than a homebuyer survey, it’s a complete job. I do twice as many building surveys as homebuyer ones a year.” Although suitable for any property, RICS particularly recommend getting a building survey for old or listed buildings, properties that are unusually constructed or have been drastically altered or for buildings which you intent to seriously modify.
The building survey can be tailored to your specific needs, unlike the standard homebuyer’s report. “In a building survey I check the property thoroughly, I’ll go up in the roof and put my head down the drains,” says Mike, “What we are generally looking for is structural problems though.” The building survey includes:
- Details of all faults in the property and estimates of how much they would cost to repair.
- A damp test on walls and a report on the condition of the damp proofing measures in the building.
- An assessment of any timber in the property, checking for signs of rot or woodworm.
- Information about the amount and condition of insulation and drainage.
- A detailed report of the construction and materials of the property.
- Recommendations for any further inspection work needed.
- A valuation and detailed checks of the services, if specified beforehand.
To save money – a survey, particularly a building survey, can uncover serious underlying faults which you may not otherwise have noticed when buying the house. This could cost you thousands of pounds a few years down the line and jeopardise your health and safety.
To decide whether the property is a good investment – once you have a clear picture of how much (if any) work needs to be done and an idea of how much this will cost, you can decide whether the property is a good investment for you. A survey can also make it easier to negotiate the price of a house.
To see if it’s suitable to renovate – if you are buying a property with the specific intention to renovate, a building survey is a must. No council will give you planning permission to rebuild or convert a home if the whole structure is unsound.
For insurance purposes – a valuation of the property will include a market value estimate and reinstatement cost, which your home insurance provider will need to know.
How much does a homebuyer’s report and a building survey cost?
A homebuyer survey will help you decide
whether to buy a property
Whatever survey you choose to carry out, always make sure you hire a qualified surveyor – RICS is a good place to start. Mike points out that: “The most important thing is to hire a local surveyor who is qualified and knows the area – using a RICS registered surveyor is a good idea.”
The cost of a building survey will vary depending on the size and type of the property as well as the location, price and which areas you want the report to focus on. RICS suggest that building surveys can cost up to £1,000.
Homebuyer surveys are priced in a more standard fashion depending on the size and value of a house. For instance, a survey on a home worth less than £99,000 would cost £300, whereas a survey on a house valued between £100,000 and £249,000 would cost £350 to survey. Always check prices before you commission the survey.
AB
