RICS said: “By failing to commission a survey before purchase, homebuyers across England and Wales are risking potential bills running into thousands of pounds.”
Research released by RICS revealed a quarter of all homebuyers who fail to have a survey are forced to make unplanned building works to their property after purchase. The average bill for these works, such as damp proofing or repairing a roof was over £1,800 however the costs can be much higher.
RICS warned that a mortgage lender’s valuation report does not represent a survey. In fact, it is a valuation carried out on the mortgage lender’s behalf and is not designed to highlight any potential problems with the property. By commissioning a home survey, any structural problems or urgent defects are highlighted, enabling the buyer to make an informed decision before committing to the property.
RICS offers surveys tailored to the type and age of a property. A RICS Condition Report provides a picture of the property with “traffic light” ratings, showing the condition of the property and also offers advice to legal advisors and highlights details of any urgent defects. The survey is aimed at conventional properties and newer homes.
A RICS HomeBuyer Report contains all the features of the Condition Report, plus a market valuation and insurance rebuild costs. It also includes advice on defects that may affect the value of the property with repairs and ongoing maintenance advice.
A building survey, the most comprehensive report, includes defects, repair and maintenance options. This is designed for larger or older properties, or if buyers are planning major works.
David Dalby, spokesman at RICS, said: “In difficult economic times it pays to be prepared. Nobody wants to be left with a home that needs extensive repairs or one they can't sell on. By having a survey you'll be armed with information on the condition of the property which puts you in a stronger position to decide whether to proceed with the purchase, or negotiate a better deal.
“Interestingly, other parts of the housing market are also using surveys to their benefit. For landlords this can be to assess their investments, while we are also seeing sellers turning to surveys in order to prepare for the sale of property. These highlight any problems that may potentially delay the sale or impact on the price later in the process.”
Rob Clifford, managing director of Direct Valuations, added: “We echo the RICS sentiment that it pays to be prepared but I believe it is even more serious. There is real risk of consumer detriment here that can affect property buyers by thousands of pounds of unexpected loss. Direct Valuations research shows that the consumer benefit of getting the right survey could be much higher than RICS' £1800 and closer to £5000 in that not only can defects be identified but purchasers can negotiate on selling price. Mortgage intermediaries should assume a responsibility for bridging this consumer understanding gap.”
