Cynics may say the conclusion is no surprise when you consider that this report was commissioned by the Royal Institution of Chartered Surveyors(RICS). After all, you wouldn’t ask a barber if you needed a haircut, would you? Against that, the sums of money involved in buying a home make the argument for expert advice compelling. When you are about to sign a contractual commitment to spend several years’ gross earnings, why blind yourself to some of the risks involved and strip yourself of valuable insurance for the price of a week or two’s wages? Many homebuyers have no idea how little they will get when they settle for a valuation report – or how much they might be able to knock off the asking price, particularly in a weak market where house prices are falling, when they are armed with a survey setting out the property’s faults and any work that needs to be done. For example, RICS found that nearly six in 10 homebuyers wrongly imagined that a valuation report included an assessment of the
building’s condition, including searching for damp and structural movement. One in three mistakenly believed it included advice on legal issues that a solicitor should investigate.
For important information like this, you have to pay for a building survey or – at bare minimum – a homebuyers’ report. Rosemary Rogers, a director of property experts reallymoving.com, explained: “As a general rule, a homebuyer’s report is usually sufficient for homes less than 50 years old and in a good state of repair. It uses a standard format and will include a valuation. A building survey, on the other hand, will be a more in-depth examination of a building’s structure and is recommended for older, dilapidated or extensively-altered properties. “Neither need be expensive. In fact, the average cost of a survey has dropped by almost 25 per cent in the last 10 years, with a homebuyers’ report costing £342 on average or £423 for a building survey.”
That’s a small price to pay for valuable insurance – as Ed Mead, a director of estate agents Douglas & Gordon, points out: “The main
reason to get a survey is that if anything does go wrong, you have a comeback on the surveyor via their professional indemnity. Don’t go with a lender’s recommendation, always stay independent.” Giles Cook, a director of estate agents Chesterton Humberts, warns against false economies: “Having a property surveyed will help
prospective owners avoid nightmare situations that can rack up enormous costs in future. “There are rarely instances where a homebuyers report might suffice, as – even if you are buying an apartment above ground floor level and below the top floor – you will be responsible for contributing to repairs to the outer fabric of the building. It’s essential to check that a sinking fund is in place for any apartment building, especially if the survey highlights repairs are needed
“Expect the worst from a survey, as it will always provide a critical report and find fault wherever possible; that is what surveyors are
paid to do. Many of the findings will be suggestions and will list repairs that are not necessarily urgent. However, homebuyers should always seek a second opinion where aspects of the report are worrying, one that corresponds with the problem it addresses, for example a damp specialist or electrician.”
Even bad news can be good news for purchasers who are well-informed before completion. RICS reckons three quarters of homebuyers who paid for a building survey were able to negotiate a lower price. Information is power when it comes to property – particularly in a buyers’ market when vendors are increasingly vulnerable to haggling.
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