WHY DO I NEED MY OWN SURVEY ?
The best way to reach an informed decision on such an important
investment as a home is to have a professional survey and
valuation of the property which interests you. Before you decide
to go ahead and commit yourself legally, you can minimise the
risks
by asking a qualified surveyor to answer these questions for you:
- Is the agreed price reasonable?
- Are there drawbacks I don't know about?
- If so, what do I need to do about them?
Commissioning your own survey is the simple, economical way
to avoid
unpleasant - and perhaps costly - surprises after moving in. In
some
cases, the surveyor's report may enable you to renegotiate the
price.
I ALREADY HAVE A MORTGAGE VALUATION REPORT...
Even if you are seeking a mortgage - and may be paying for
a Mortgage
Valuation report - it is still advisable and prudent to arrange
a
survey by your own surveyor. The Consumers' Association Which?
magazine and the Council of Mortgage Lenders both give this advice.
The reason is simple: the Mortgage Valuation report is prepared
for
the lender - not for you, the borrower. It answers only the lender's
questions concerning the appropriate security for your loan.
You cannot rely on it to answer the questions which concern
your
personal interests.
WHAT CHOICE OF SURVEYS DO I HAVE ?
RICS members also offer two forms of survey which are specifically
designed to help homebuyers:
A BUILDING SURVEY (formerly called a structural survey):
A Building Survey is suitable for all residential properties and
provides a full picture of their construction and condition. It
is
likely to be needed if the property is, for example, of unusual
construction, is dilapidated or has been extensively altered -
or
where a major conversion or renovation is planned. It is usually
tailored to the client's individual requirements. The report includes
extensive technical information on construction and materials
as well
as details of the whole range of defects, major to minor.
The HOMEBUYER SURVEY AND VALUATION (usually called 'The
HOMEBUYER
Service')
By contrast the Homebuyer Service is in a standard format and
is
designed specifically as an economy service. It therefore differs
materially from a Building Survey in two major respects.
- It is intended only for particular types of home: houses,
flats and
bungalows which are:
- conventional in type and construction
- apparently in reasonable condition.
- It focuses on essentials: defects and problems which are
urgent or
significant and thus have an effect on the value of the property
-
although it also includes much other valuable information.
The Homebuyer, unlike a Building Survey, provides not only
a survey
but also a valuation as an integral part of the Service.
WHAT ELSE SHOULD I KNOW ABOUT THE HOMEBUYER SERVICE ?
The Service - the inspection, the report and the valuation
- are all
explained in detail in the accompanying Description of the Homebuyer
Service, but the highlights are:
- This is an economy package. Because of the practical limits
on the
type of property and on the scope of its coverage, the HOMEBUYER
Service is priced mid-range - more expensive than a Mortgage
Valuatlon, but less than a Building Survey.
- The surveyor's main objective in providing the Service is
to assist
the prospective homebuyer to:
-make a reasoned and informed judgement on whether or not to
proceed with the purchase
-assess whether or not the property is a reason able purchase
at
the agreed price
-be clear what decisions and actions should be taken before
contracts are exchanged.
-The surveyor also gives his or her professional opinion on the
particular features of the property which affect its present value
and may affect its future resale
- The concise report covers the building inside and outside,
the
services and the site. It focuses on the defects and other problems
which in the judgement of the surveyor are urgent or significant
but
it also covers:
-the general condition and particular features of the property
-particular points which should be referred to the client's legal
advisers
-other relevant considerations concerning, for example, safety,
the
location, the environment or perhaps insurance.
Matters which are judged to be not urgent or not significant
are in
general not included in the report, but the surveyor will mention
matters judged to be both helpful and constructive.
- Where the client has a particular concern - perhaps whether
the
property is suitable for a disabled person - the surveyor will
keep
this in mind during the inspection. Or, a specific addition to
the
Service - perhaps to the standard inspection - may be agreed between
client and surveyor.
Where necessary. the surveyor may also be able to provide some
extra
service which is outside the scope of the standard package - perhaps
providing a schedule of minor defects (for later discussion with
a
contractor), or arranging for the testing of mains services by
suitably qualified specialists.
- Where the client should take some action before deciding
to proceed
with the purchase, this is signalled clearly in the text of the
report and included in the summary of action and other key
considerations.
The main features of the HOMEBUYER Service are compared below
with those
of a Building Survey:
1) HOMEBUYER SURVEY & VALUATION
Type of property:
Conventional houses, flats, bungalows, etc.,in apparently reasonable
condition.
Type of service:
Economy package in standard Form.
Objects of service:
To assist client to: (i) make an informed judgement on whether
or not to proceed;(ii) decide whether or not property is a reasonable
purchase at agreed price; and (iii) assess urgent and significant
matters before exchanging contracts.
Special features:
Focus on urgent and significant matters.
Valuation:
Integral part of HOMEBUYER Service
Format:
Compact, fixed RlCS format
2) BUILDING SURVEY
Type of property:
Any residential or other Property, in any condition.
Type of service:
Custom-made to client's individual needs.
Objects of service:
To provide client with: (i) assessment of construction/condition
of property; and (ii) technical advice on problems and on remedial
works.
Special features:
Details of construction/materials/defects
Valuation:
Provided as agreed extra
Format:
Usually much longer, in surveyor's format
copyright, THE ROYAL INSTITUTION OF CHARTERED SURVEYORS 1997