What is the difference between a survey and a valuation?
Are you ready to buy your dream home? The valuation alone will not tell you how the property is in terms of condition. Listed below are the reasons why.
Mortgage lenders carry out valuations to determine the value of properties
Any significant issues with a property will be identified by a survey
Be sure to choose the right survey type for you among the three types available
A survey might not be necessary for a brand new house, but they're a good idea for older properties
It is common for people to confuse a valuation with a survey. The two are actually very different from one another.
When deciding whether to conduct a survey, here are some key differences to keep in mind.
How does a valuation work?
The purpose of a valuation is solely to benefit the mortgage lender.
In order to secure financing for you to purchase the property, you'll need a valuation to prove the property is worth the amount you plan to pay.
Consequently, a mortgage must be valued before approval.
As a buyer, the valuation is not for your benefit. Additionally, structural problems and damp or dry rot won't be detected.
In the case of a non-mortgage purchase, you won't need a valuation.
How does a survey work?
Having a survey done on a property is like having a health check done on it. A qualified surveyor will conduct the survey and provide you with an independent report.
In addition, it will reveal any potential problems that you may not have noticed, such as a non-compliance with building regulations.
When does a valuation or survey take place?
The valuation process is a simple inspection that can be accomplished quite quickly. A drive-by valuation is sometimes called that because the person performing it simply drives slowly past the home.
Most mortgage lenders won't even visit the property. With the help of an algorithm and their own database, they will perform a remote 'desktop' valuation.
Surveys take much longer. Surveys can take anywhere from a few hours to several days depending on the type and size of the property, its age, and its condition. The average survey takes a few hours to complete.
Which types of surveys are available?
Surveys can be of three types: Condition Reports, Home Buyer Reports, and Building Surveys.
1. A Level 1 Survey (Condition Report)
The most basic report is a Condition Report. Any major problems are flagged up, and a snap shot of the property's condition is provided.
The system summarises any risks using traffic lights. This survey isn't thorough, so some issues might be missed. Those with newer homes are most likely to benefit from it.
2. A Level 2 Survey (HomeBuyer Report)
HomeBuyer Reports are the next step. This involves a more thorough examination of what can be seen by the surveyor.
It can detect damp or subsidence problems. Any issues that might affect the property's value are identified, along with any inconsistencies with current building regulations.
Additionally, it includes a valuation and a cost estimate for rebuilding the home.
3. A Level 3 Survey (Building Survey)
The top of the tree is a Building Survey. The structural survey highlights any problems with the property, even those that are minor. In addition, it provides solutions to these problems.
An inspection of the loft and under the floorboards will be conducted by the surveyor.
Buying a unique home with an unconventional design, or an older property in bad condition, is a great option.
What is the value of conducting a survey?
You should consider the type of property you're buying before making a decision. When buying a brand new home, a valuation might be all you need.
Major structural defects are covered by a 10-year warranty on most new homes. Fixtures and fittings are typically covered by a developer's warranty of two years.
When buying an older property, you should have a survey performed. In the case of homes that are more than 50 years old or in poor condition, you should consider a survey.
Before you agree to purchase a home, you should understand what you're getting into.
It is possible to negotiate the sale price down if a survey reveals an issue that would cost £5,000 to fix.
A survey gives you peace of mind that the most expensive item you'll ever buy is in good working order.
Is my house survey something I should worry about?
Until you know something is worth worrying about, there's no point in worrying.
When the surveyor shares their report with you, ask them to discuss it by phone if you are unable to do so.
Alternatively, you can request another type of survey if the initial survey raises problems you wish to investigate further.
Further investigation of damp, timber decay, insect attacks, and invasive weed control is available through supporting surveys.
What areas do Carpenter Surveyors cover for surveys and valuations?
Areas we cover:
Warwickshire, Worcestershire, West Midlands, Staffordshire, Leicestershire, Rutland, Nottinghamshire, Derby, Gloucestershire, Herefordshire, Cotswolds and Northamptonshire.
Get a Quote from Carpenter Surveyors today.