Embarking on the path to owning your first home in the UK is an exciting venture, but the process can be overwhelming. In this chapter, we unravel a pivotal aspect of the home-buying journey – surveys. Familiarizing yourself with the three types of property surveys is vital for making well-informed decisions about your prospective home.
The Three Types of Property Surveys:
- Property Valuation Reports (Level 1): While not obligatory for first-time buyers, these reports are commonly used by cash buyers. They focus on determining the market value of the property but may lack the depth required for comprehensive insight.
- RICS Home Survey (Level 2): Offering a more detailed examination, this survey is suitable for homes built in the last century that appear to be in good condition. It encompasses an assessment of issues affecting the property’s value, advice on repairs, and a reinstatement value for insurance purposes.
- RICS Building Survey (Level 3): Considered the most comprehensive survey, it is ideal for older properties, those deemed unconventional, or homes requiring substantial alterations. It covers everything in a HomeBuyer Report and provides a detailed analysis of the property’s structure and condition.
Compulsory vs. Recommended Surveys:
For first-time buyers in the UK, the only mandatory survey is the mortgage valuation, arranged by the lender. However, two additional surveys, RICS Home Survey and RICS Building Survey, offer valuable insights into the property’s condition and potential issues.
Why Should You Get a Survey?
Although not a legal requirement, a survey is highly recommended to uncover any existing or potential problems with the property. According to RICS, buyers spend an average of £5,750 on repairs and renovations when issues go unnoticed. Investing in a survey can save you from unexpected expenses down the line.
Choosing the Right Survey:
Understanding the differences between the three types of surveys is crucial. The Level 1 – Condition Report is suitable for newer builds, the Level 2 – HomeBuyer Report is ideal for homes built in the last century, and the Level 3 – Building Survey is comprehensive, covering older or unconventional properties.
How to Obtain Survey Quotes:
When opting for a HomeBuyer Report or Building Survey, obtain quotes from up to four local firms. This can be easily done through online platforms, allowing you to compare prices, reviews, and services.
Interpreting Survey Results:
Once the survey is complete, a Chartered Surveyor will provide a report in plain English. Minor issues are common, but it’s essential to carefully consider their severity and implications. Depending on the findings, you may proceed with the purchase, negotiate repairs with the seller, renegotiate your offer, or, in severe cases, reconsider the purchase.
Remember, the goal is not just to buy a house but to make a well-informed investment in your future. Taking the time to understand surveys ensures you embark on your homeownership journey with confidence in the UK housing market.