So, you’ve had your offer accepted on a property, however, is the house actually worth what you’ve said you’ll pay for it?
A property survey will be carried out to find out the true value and the overall condition of a property. They will also highlight any issues with the property, such as major/minor damages.
There are three main types of property surveys: Mortgage Valuations, Homebuyer’s Report and Full Structural Survey. Sometimes, a property survey can be carried out free of charge, it depends on the lender that you use.
Depending on the survey that you choose, the outcome of your survey report will vary. Some will provide more detail, whereas others will only touch upon certain aspects. You’ll find that the more in-depth a survey is, the more costly it will be.
If you discover something on your survey about your property that you weren’t told about, by law you are allowed to approach the seller and work out an alternative price if necessary.
Mortgage Valuations are the simplest type of property survey. These are carried out just to work out how much a property is actually worth. Your lender will need to ensure that the property price matches how much you are set to borrow from them. For example, if you put in an offer above the property’s actual value, the seller will likely accept your offer, however, your lender won’t. Unless you have the funds to make up the difference the lender will pull out of the deal. This is called a down valuation.
Unfortunately, this type of survey will not point out unobvious repairs and damages. However, it can inform you of clear structural defects that will require a further look at. For further property investigation, you will be required to pay more to upgrade your survey. In the long run, this may be worth it.
A Homebuyer’s Report focuses on safety. How safe is the property? Is it suitable for living in? These things need to be checked as there could be a mould problem, damp issues or something that does not pass the current building laws.
The report will be carried out by a property expert. They will examine the property from top to bottom, making sure that it’s safe for you to live in.
As a Mortgage Broker in Birmingham, if you’ve made an offer on an older building, we would strongly advise that you take up a Full Structural Survey.
This is the most expensive property survey because the whole property is surveyed. It will also provide the biggest insight to the property out of the three main surveys, highlighting what condition the property is in and what changes need to be made if the property purchase goes through.
A Full Structural Survey can take as long as a whole day depending on the size of the property.
New build properties work slightly differently. There is a property survey specialised for them called a Snagging Survey. This survey will point out both minor and major issues, it could be anywhere from a missing hinge on a door to cracks in the ceiling.
If the new build has already been built and it’s ready for you to move into, ideally, you want to get a snagging survey carried out on it prior to moving in. This way, you have the power to negotiate pricing if there is anything wrong with the property.
If you need help to choose the right property survey for you, feel free to get in touch with our mortgage team. We’ve helped thousands of First Time Buyers in Birmingham and Home Movers in Birmingham choose property surveys in the past – you could be next!
You can obtain the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.