Surveys and homebuyer's reports
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
Many buyers have a structural survey or homebuyer's report carried out before buying a home. You don't have to have one done, but it is a more detailed inspection than a valuation, which gives information about the condition of the property and any structural problems.
If expensive repairs are needed, you may be able to get the seller to get the work done or pay less and use the money you save to get the work done after you buy.
Information from the seller
Although anyone selling a residential property is required to produce a home information pack, this is not equivalent to a survey or homebuyer's report and may not detect problems with the property.
Sellers and estate agents don't have to point out any problems in the property to potential buyers. But if you ask direct questions (such as asking whether the roof leaks, or whether there have been problems with dampness or condensation) they have to answer your questions truthfully. If you go on to buy the property and discover that you were given false or misleading information, you might be able to take action. Get advice from a solicitor if you are in this situation.
Finding a surveyor
Most lenders can give you a list of surveyors they approve. If you use someone approved by your lender you may be able to combine the valuation with the more detailed inspection. Doing this works out cheaper because you only pay one set of fees. If you choose an independent surveyor, you'll have to pay a separate valuation fee. It's always best to choose someone who is registered with the Royal Institution of Chartered Surveyors (RICS).
The purpose of a structural survey/homebuyer's report
This type of inspection assesses the condition of the property. Both are more detailed (and more expensive) than a valuation, but can save you a lot of money in the long run. They give you information about any structural or other defects in the property, such as dampness and condensation, subsidence or woodworm.
There are two types of inspection, which provide different levels of detail about the property. The type of inspection you decide to have may depend on:
- what you can afford
- the age of the property
- whether it has been converted or extended.
Homebuyer's reports are more detailed than a valuation, but less detailed than a full survey. They detect visible structural problems and give an indication of the general condition of the property.
Structural surveys are the most detailed type of inspection. They are more likely to spot hidden problems such as subsidence or dry rot. However, they may not cover plumbing, heating or electrical wiring in much detail. In many cases, surveyors recommend that a specialist is brought in to look at particular areas.
The inspection report
Whichever type of inspection you go for, a qualified surveyor will assess the condition of the property you intend to buy and produce a written report.
It's important to check carefully what is included in the survey or homebuyer's report and what isn't. It may not be as detailed as you think. If the surveyor can't get to part of the property easily (such as the roof), it may not be inspected. The report should say exactly which areas have been inspected.
The report may recommend that a specialist is hired to look at specific things such as heating and insulation. This will involve extra fees but may be worthwhile if there are potentially serious problems.
Problems with the report
Most surveys and homebuyer's reports will indicate that some repairs are needed. Surveyors often point out the worst possible outcome of any problems they find, particularly if you are buying an older property. However, some repairs are relatively simple and inexpensive, so this doesn't necessarily mean that the property isn't worth buying. Read the report carefully.
The report may say that the property is in very poor condition and expensive repairs are needed. If this happens, you may decide that you want to negotiate a better deal before the sale becomes legally binding. If you have a solicitor, s/he can do most of the negotiation involved in this as part of preparing the legal contracts. This can take a long time and the seller may not agree to all of the changes you want.
Surveyors' fees
Fees for surveys and homebuyer's reports are not refundable. How much you have to pay usually depends on the size, age and price of the property, and how detailed the inspection is. It may be possible to combine the lender's valuation with the survey or homebuyer's report. That way you only pay one set of fees.
Making a complaint
If you buy the property and later find problems in areas that were included in the survey, you can make a complaint. The Royal Institution of Chartered Surveyors (RICS) has a complaints procedure and an arbitration scheme for sorting out disagreements. You can use these if your surveyor is a RICS member (most are). It usually works out cheaper than going to court, and is legally binding. You may be able to claim compensation up to £50,000 if your home is worth less than you paid for it because of the work needed.
