Published 28 October 2010 by RICS

Homebuyers in England and Wales are facing bills for thousands of pounds by failing to have a sufficient survey of their property before purchase, according to new research* from RICS.

A quarter of all homebuyers who only had a mortgage valuation report had to make unplanned building works to their property after purchase. On average, the bill for these works, such as damp proofing or repairing a roof, came to £1,818 – but the cost can be much higher.

Home surveys help buyers make informed decisions on whether to go ahead with buying a property, before legally committing themselves. Despite their importance, many buyers remain confused about surveys.

A mortgage valuation report is often wrongly assumed to be a building survey. Actually, it is purely an indication of the property’s value for loan purposes, prepared for the lender, not the purchaser. Most importantly, it won’t uncover any potential problems. However, when questioned, 58 per cent of respondents wrongly believed a valuation report included the building’s condition, including searching for damp and structural movement. A further 31 per cent were mistakenly under the impression it included advice on any legal issues a solicitor should investigate.

Even if you are paying for a mortgage valuation report, RICS still recommends you arrange a survey with your own surveyor. There are two options available; an RICS Homebuyer Report, which provides an inspection and report on the property’s condition, plus a valuation. A building survey is more detailed, and may be the best option if the property is in a bad state of repair, has been significantly altered, or if you are planning a major conversion or renovation.

A survey might just be able to help you get a better deal on your property, too. 76 per cent of those questioned agreed that a more comprehensive survey could potentially allow you to negotiate a better deal with the seller.

To help homebuyers navigate the survey market, RICS has prepared some helpful tips:

1. Ask an expert
   Your mortgage company or IFA will offer you advice on your finances, but it is a chartered surveyor who can offer you professional advice on the property itself.  Before you commit yourself legally your surveyor will advise you on what is a reasonable price to pay for the property and flag any serious defects or risks with the property.
2. Spend a little to save a lot
   The old adage a "stitch in time saves nine" couldn’t be truer when it comes to property. By spending a small amount extra on a survey you could be saving yourself thousands. A HomeBuyer report costs just a few hundred pounds, a small amount extra on top of a valuation report, on average £350 – a small amount to help uncover any unpleasant or costly surprises. A building survey is more detailed and therefore more expensive.
3. Use your survey to help negotiate a better deal
   76 per cent of those questioned agreed that a more comprehensive survey could potentially allow you to negotiate a better deal with the seller. A chartered surveyor adds: “My client had already had mortgage valuation, which didn’t raise any issues. However, the HomeBuyer report I carried out found lintels missing over window openings, laminating roof tiles, blocked drains, and rising damp. The fee to repair these problems could have cost £2,000 – a sum the client negotiated off the cost of the house.”