Understanding a House Survey: A Comprehensive Guide

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When it comes to property, a survey is an essential step for truly understanding the condition of your property and a house survey is how to do it! With there being several types of property surveys available, it can be a little tricky to decide which one is best for you, so let’s help you decide!

What level survey should I get?

So there are 3 main surveys: a Level 1 survey, a Level 2 survey and a Level 3 survey. They sometimes get called a condition report (Level 1), a homebuyer report (Level 2), or a building survey (Level 3). So let’s get into the differences between the 3 major surveys and how you can navigate through them to decide your perfect one.

• Level 1 Survey – The condition report provides a straightforward overview of your home’s condition. It is the only surface-level inspection out of the 3 surveys and takes the least time to complete (1 hour). Its ideal for newer homes and ones with no major issues. While this survey highlights issues that can affect the value of the home, it doesn’t go into detailed analysis on how to solve these issues. This survey also uses the traffic light system: Green for satisfactory areas, amber for places needing attention, and red for urgent issues.

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• Level 2 Survey – The Homebuyer Report is suited for properties in reasonable conditions. This survey goes beyond the level 1 survey; its more detailed and examines potential issues and visible defects. This survey also includes recommendations for repairs and maintenance. This survey is the most popular out of the 3 because its ideal for those wanting more detail but without the structural inspection. It also uses the same traffic light system.
• Level 3 Survey – Lastly the Building Survey, the most comprehensive out of the 3. This survey is ideal for older properties or for houses with noticeable defects and unusual features. This survey examines all areas of the house (structure, materials, potential or existing issues). Unlike the other 2 surveys, level 3 includes advice on repairs, estimated costs, and maintenance considerations. A level 3 survey is recommended for buyers who need a deeper understanding of the property’s condition.

When to get a house Survey

So a lot of people wonder when is the perfect time to get a property survey, and ideally the answer is after your offer has been accepted but before contracts are exchanged. In this slot of time, it allows you to address issues with the seller and renegotiate the price. If your buying an older home, then its best to arrange a survey during the planning stage; this is to identify any potential structural issues that could affect your home purchase. Even with newer homes, a survey ahead of closing on the property ensures that you’re aware of hidden issues.

Now if you have closed on your home but didn’t get a survey beforehand, don’t panic; it is still beneficial to arrange one. This is especially true if you have noticed issues after moving in. For example, a Level 2 or Level 3 survey will help with identifying structural issues, dampness, or roofing concerns. Additionally, if you believe you will like to remodel your home, a survey can let you know your limitations.

How much does a house survey cost?

A property survey ranges in price across the board; this can be for several reasons. Firstly, how big the home is, the age of the home, and the location. But if you had to gather a rough average, it would be this:

• Level 1 (condition report) – £300 – £400
• Level 2 (homebuyers report) – £600 – £800
• Level 3 (building survey) – £800 – £1,200

But as stated before, this can widely vary on many factors, so its best to contact the surveyor first and get a free quote. The surveyors qualifications also come into influence when it comes to pricing, whether they are chartered or not. Then, in some cases, you can be paying up to £2000.

Home surveys vs mortgage valuations

People often get a mortgage valuation and a home survey mixed up, but they are 2 completely different processes. A mortgage valuation is carried out on behalf of the lender to confirm the value of the property, while a house survey is so you can identify potential defects to help you negotiate the price point or simply to prioritise and budget for future repairs. In short, a mortgage valuation is for the bank and a house survey is for you.

Home Surveys in Scotland

As we talked about before, in Scotland there happen to be different laws regarding home surveys. In Scotland, the purchaser is the one who receives the home report from the home seller, and like the home reports in England, they tell you the major defects with your home.

In the report, you are also provided with an energy report, which breaks down the homes energy efficiency in the form of an Energy Performance Certificate (epc)

Is a house survey worth it?

So after finding out the price of a survey, people wonder whether it is worth it, but it is a crucial step into feeling secure about your home. Here are some stats to show why it might be worth it:

• Cost savings – Approximately 20% of homebuyers who skip a survey face unexpected repair costs averaging £5,750 (RICS)
• Negotiation Power – About 1 in 4 buyers successfully negotiate a lower price after the surveyor finds defects. The price reduction post-negotiation can range from 1% to 5% of the property value on average.
• Increased Confidence – 80% of buyers feel more secure after a survey when they know the possible defects of their home.
• Structural Issues – Around 18% of properties, such as dampness and foundation problems, are uncovered by the surveyor.
• Preventive Maintenance – 62% of homes with identified damp issues avoid further damage and costs with early prevention.

Here are some key figures so that you can see the potential for price reduction on your home is enormous. By uncovering hidden defects, buyers can gain the leverage to get the property at a cheaper price.

Arranging a home survey

Arranging a home survey is the buyer’s responsibility, unless your buying a home survey in Scotland. It’s important to choose a licensed professional with credentials from reputable organizations, like RICS.

When selecting a surveyor, its imperative to prioritise expertise and reliability; this is where we come in. Our team specialises in home surveys, and all of our members are certified by RICS. Whether its a snagging survey (new build) or a good old-fashioned Level 3 survey

Final Thoughts

In summary, choosing a property survey is a vital step for making a confident property purchase. With options ranging from a Level 1 survey up to a Level 3, there’s a survey type suited for every property and buyer’s needs. A property survey helps identify issues and negotiate the price of your home while helping you save on future expenses.

While a survey might seem like an expensive upfront cost, it is invaluable for offering peace of mind and a clear understanding of your property’s condition. Ultimately, getting a home survey helps ensure your new home is safe, secure, and ultimately a financially sound decision.

We hope this guide has been helpful on your journey to homeownership. If you’re ready to take the next step, please do not be afraid to contact us!