Property surveys can prove a very wise investment

Homebuyers are taking a huge risk by not commissioning independent surveys according to Dacre, Son & Hartley.

Following research from over 1,000 buyers, the Royal Institution of Chartered Surveyors (RICS) and the market research firm ComRes found that after scraping together a deposit, a large number of buyers decided not to have a comprehensive survey of their new property.

One in five of those who don’t bother with a survey subsequently uncover faults which cost on average £5,750, with 17 per cent of new owners having to spend more than £12,000 on repairs.

James Wattrus, manager of Dacre, Son & Hartley’s Survey Department, says: “When mortgage lenders require deposits of up to 20 per cent of the property’s value, which can put home buyers under a huge amount of financial pressure, it is inevitable that some will seek to save money by not having a survey.

“It is both very unwise and a false economy not to commission a survey, after working hard to save for a deposit. The last thing buyers need are unexpected bills for unforeseen repairs , which are not a good introduction to home-ownership.

Many homebuyers rely on their mortgage lender’s valuation, usually priced at around £200, believing it is a survey.

However, it is simply a surveyor’s thoughts on what the property is worth, rather than a close physical inspection.

According to James, some valuations are prepared by simply driving past the property or they are increasingly based on desk top analysis using house price data and selling prices for others homes in the vicinity.

Susan Armstrong bought her Halifax home on the strength of a simple valuation, only to discover that there was a serious damp problem that the previous owners had cleverly masked with wallpaper and paint. She later discovered that a chimney breast had been removed from the ground and first floor, but the rest of the stone structure was being held up by a piece of rotting timber in a cupboard in the attic room.

“The damp course cost me £5,000 and I realised pretty soon after moving in that there was something wrong. The walls 
were wet and there was an awful smell. When I peeled the paper off, the plaster was crumbling and there was black mould,” 
says Susan.

“I didn’t discover the remaining chimney breast until I decided to have the attic room properly converted. The builder was horrified when he saw it. He said that if the wood had given way the stone would’ve crashed through the ceiling onto my bed, which is directly below.

“If I move again I will definitely factor in a full survey.”

James Wattrus says the cost of surveys varies depending on the type commissioned and the age, type, size and value of a home.”

The most basic is a Property Condition Report, which provides general advice about the overall condition of a property using condition ratings.

However, the most popular survey is the RICS Homebuyer report, which is a general but thorough document detailing the condition of a property, focusing on items that will affect value and saleability. It also offers a valuation and buildings insurance calculation. Costs will start around £295 + VAT for a small home.

One of the most comprehensive reports is a full Building 
Survey, which provides a 
detailed analysis on the condition of a property and offers an in-depth report on all major, 
general and minor defects. 
This report uses photographs to illustrate problems and makes recommendations about any repairs that are required and estimates how long they could take.

A Building Survey is a substantial document extending to over 25 pages, and will cost upwards from £595 + VAT.

“Alternatively buyers may have a specific concern about a property they are buying, which may have arisen from something they noticed during a viewing or a problem with other property in the locality that they have heard about,” says James.

“This could be concerns 
about ground conditions, a crack in a wall, condition of the roof covering, an area of damp or something else. In these instances we can provide a Specific Defect Report which 
will investigate a particular 
issue and provide recommendations about what’s required to repair the problem and what it might cost.”

Once you know what the 
issues are you can discuss them with the vendor.

In some cases they will offer to put the problem right or they may reduce the price of the property accordingly. Either way you will move in with your eyes open to any faults.

“When you consider that a property is nearly always the biggest purchase that anyone 
will ever make, not having a survey done is false economy,” says James.

“A recent survey by Which? magazine found that where a survey identified a problem, 44 per cent of buyers successfully negotiated a price reduction and that’s a figure that buyers really can’t afford to ignore.”