Results from the Royal Institution of Chartered Surveyors survey show that many home owners who did not take out a home survey are left with a property they regret buying and an average of £5,750 in repair bills.
Buyers are clearly aware of the need for independent advice, with 94% of respondents agreeing it is important to commission a survey, but many are not doing so in the false belief that they can safe money and almost a third failed to do so.
RICS says that this means buyers are left ignorant of issues with the property, such as structural defects, dry and wet rot, subsidence and many other faults, only for these to become serious matters at a later date. The new home owner may then be unable to afford, or may lose the desire, to fix the faults and may be left with a property they may no longer want to live in but are unable to sell to recoup their losses.
Some 89% of respondents who did not commission a survey now think it is important to take out independent advice and 73% of people who did commission a survey said it provided them with peace of mind and over 50% felt it was value for money.
‘For most of us, buying a home is the biggest purchase we will ever make so it pays to get it right. All too often I hear stories of people who are looking to buy or sell a property and cut corners by not getting an independent professional to carry out a survey into its actual condition,’ said Peter Bolton-King, RICS global residential director.
‘It is worrying that almost a fifth of buyers who didn’t commission a home survey were stuck with a house they would have thought twice about if they’d been aware of its true condition. What’s more, the average bill for putting these faults right came in at almost £6,000,’ he explained.
‘Just because a house looks alright on first inspection doesn’t mean there aren’t serious and costly underlying problems such as structural defects, dry rot or even subsidence. Clearly, when buying a home, money is always tight. But does anybody really want to go through the stress and financial strain of buying somewhere riddled with problems that they have to spend potentially large sums of money to rectify?,’ he added.
He pointed out that home survey is a small price to pay to avoid this time bomb. ‘A survey ensures buyers are informed about the condition of the property and armed with the necessary information to negotiate the fairest deal. When it comes to buying or selling to a property, forewarned definitely is forearmed,’ said Bolton-King.
Results from the survey also showed common misconceptions and lack of understanding amongst consumers. Nearly 60% of respondents incorrectly identified an estate agent’s primary responsibility with one in 10 mistakenly believing agent’s act for the buyer, whilst nearly one in five thinking they act equally for the buyer and seller.
‘The lack of understanding about the home buying process is putting consumers at increased risk as many fail to take out further independent, expert advice. Agents can and should offer advice to buyers, however, only a surveyor is trained to identify issues with a property. The cost of a survey is a small price to pay for this knowledge and peace of mind,’ added Bolton-King.
In an RICS Home Survey a chartered surveyor conducts an in-depth visual inspection of the property. Their report provides an expert account of the property's condition and highlights any problems in clear and easy to understand 'traffic light' rating.
Different homes require different types of survey. RICS offers three types: RICS Condition Report, RICS Home Buyer Report and RICS Building Survey.
The condition report shows the condition of the property, offers guidance to legal advisors and highlights any urgent defects. Typically the lowest priced of the surveys, it is aimed at conventional properties and newer homes.
The home buyer report includes 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.
The building survey is recommended for larger or older properties, or if you’re planning major works. It provides an in-depth analysis of the property's condition and includes advice on defects, repairs and maintenance options.
