According to MORI and Which magazine, 4 out of 5 Homebuyer’s do not have a full survey or a RICS Homebuyer’s Report and Valuation carried out on their new home
We have heard many excuses for not carrying out a survey; ranging from cost to “our Lender will carry out the survey.” A lenders’ “survey” is actually not a survey at all and is merely a valuation of the property to ensure the Lender is not lending too much on the property.
A common excuse is to believe that a new house built within the last ten years has a NHBC guarantee. This is somewhat misleading as there is no such thing as a NHBC guarantee, merely a warranty. The warranty is really only effective, (unless in extreme cases) for the first two years after the property was built.
What types of Survey are available?
There are three types of survey available. A new survey was launched in 2011 by Royal Institute of Chartered Surveyors (RICS)
1. RICS Home Condition Report
A RICS Condition report gives you clear ratings showing the condition of the property, as well as advice for your legal advisers and details of urgent defects
2. A RICS Home Buyer Report (HBR)
A RICS HBR gives you all of the above, plus a separate market valuation and insurance reinstatement costs, and advice on defects that may affect the value of the property. The HBR also recommends what necessary repairs you property needs (if required) as well as on-going maintenance advice.
3. Building Survey
A Building Survey gives you a comprehensive structural report tailored to your property. The property highlights defects, repairs and maintenance options. This report is essential for larger or older properties or major works are planned.
So always commission a survey, not only will it help identify problems and allow you to budget. According to research from “Which” A buyer commissioned a survey they were able to achieve an average reduction in the asking price by £2000.