How a homebuyer survey can impact your negotiations
Homebuyer surveys are carried out when someone is looking to move house. At a fundamental level, they’re a way of checking a home’s value and knowing if any problems lurk beneath the surface.
Homeowners and estate agents list properties at above the market rate. This gives them wiggle room for negotiations. So, how can a homebuyer survey help you pay the correct amount while providing peace of mind? That’s precisely what this article addresses.
What does a homebuyer survey look for?
A homebuyer survey is conducted by a chartered surveyor. RICS-registered individuals are held to strict standards of training, qualifications, experience and professionalism. In fact, only RICS members and associates are allowed to use the title ‘chartered surveyor’ in the UK.
These days, we officially refer to the homebuyer survey as a Home Survey Level 2. The regulations and guidance were updated by RICS a couple of years ago, making the three main options (Level 1, Level 2 and Level 3) easier to understand and distinguish. It’s more in-depth than a Level 1 but doesn’t come with the focus on structural integrity you get with a Level 3.
For this reason, a homebuyer survey is appropriate for traditional, good-condition buildings. You’ll get a comprehensive overview, including a valuation if you wish.
A homebuyer survey involves checks for all sorts of problems, including common issues in the UK like the following:
- Japanese Knotweed
- Damp
- Rot
- Subsidence
- Drainage issues
- Roof leaks or problems
- Woodworm
How do these potential problems impact a home’s value?
In short, the better the condition of a property, the more desirable it is – and, therefore, the more valuable it is.
More severe problems – bad cases of dry rot, woodworm or subsidence, for example – can even make a building unsafe. Of course, first-time buyers, young families, or anyone struggling with cash flow wants to avoid these properties at all costs (unless the issues are fixed or ready to be repaired).
Knowing about (at the very least) these problems long before you exchange contracts and keys is vital. It might mean you put money aside to cover the costs. More realistically, you’ll negotiate a lower price with the seller or ask them to fix the problems before you move in. We’ll discuss this a little more in the next section.
In contrast, the opposite is also true. If your homebuyer survey finds no problems at all, you can rest assured that you’re probably getting a good deal.
How to renegotiate with the seller
If your homebuyer survey finds problems that should be addressed, you have three options:
- Pull out – your survey may uncover a major issue and advises the property should be avoided. However, this is very rare. In seven years, we’ve only seen this a handful of times.
- Speak to the vendor and/or agent and can get the work done before purchase, or ask the vendor to reduce the price to help with the costs.
- Go into the purchase with your ‘eyes wide open’ knowing there are issues and knowing there are things that will need doing. You can also obtain quotes for the works so you can plan for the costs.
On average, most homebuyers successfully ask sellers to repair the faults before the move date. Your solicitor should know exactly what they’re doing here, and they should add a relevant clause to the contract. This might involve a further professional inspection to ensure the job has been done well.
We never recommend absorbing the price yourself. All these features and problems contribute to the building’s overall value. You shouldn’t be paying more than something is worth, especially if a mortgage is involved.
GB Home Surveys is here for you
GB Home Surveys conducts homebuyer surveys (also known as a Home Survey Level 2) throughout England’s South-West and West Midlands. We also have a regional office in South Wales.
If you’re moving house within these areas, you might need a homebuyer survey – and we can help. We’re very happy to explain exactly how your survey could impact your negotiations in more depth over the phone or an email conversation. Also, don’t forget to check out our homebuyer survey Quote Calculator (absolutely commitment-free to use) or ask about repair cost estimates.
Use the contact form below to get in touch. We look forward to hearing from you.
