Buying a house is a process strewn with potential pitfalls. You may have found your perfect cottage in the country or dream mansion with acres of land, but now you need to look at the property's structural integrity. This is definitely a job for the professionals, but it can initially seem confusing when faced with all the jargon. Valuation, homebuyer's report, building survey, what is the difference and which one is appropriate for the house you are buying? The Basic Valuation If you require a mortgage on the house you are intending to purchase, your mortgage provider will require a basic valuation. This is the absolute minimum necessary to complete a purchase and will not look in detail at the property. Any potential structural problems noted at this stage are likely to be obvious and you will have already seen them yourself while viewing the property. Although it can be tempting to minimise costs it is highly recommended that you invest either in a homebuyer's report or a full building survey to avoid being faced with unexpected and potentially large repair bills when you have purchased the property.
The Homebuyers Report
A homebuyers report involves a more extensive survey of the property and is undertaken by a member of the Royal Institution of Chartered Surveyors (RICS). In 2009 a new format was introduced by RICS for this type of survey to make it more accessible to the purchaser. The report considers the inside and outside of the property and the grounds separately and will include a valuation and, if necessary, appendices detailing what action you should take next as a potential buyer. Each section of the homebuyer's report is colour-coded according to a "traffic light" system so that you can see at a glance where there may be problems or where action is required. As an alternative to a full homebuyer's report you can ask for a shorter version known as a Condition Report at a slightly lower cost. This will not include a valuation or give any advice on repairs that may be required.
The Building Survey
A building survey is the most thorough survey of a property, and therefore the most expensive, setting you back by up to £1000. It will take longer for the survey itself and to produce the report, which will be comprehensive and give cost estimates for work that may need to be done. All defects, however small, will be reported as the surveyor is legally required to do so, meaning that the report can be long and seem daunting to the prospective purchaser. Rural properties Buying a property in a rural area requires special consideration. You are often looking at older houses which may have features like thatch or timber components, or they may be in mature grounds with large tree root systems that could be undermining the foundations. For this reason it can often be better to spend a little more money and invest in a full building survey rather than the more basic homebuyer's report. If more specialist surveys are required they can also be arranged at this stage. It can be worth paying more to provide peace of mind and avoid you unwittingly purchasing a property which may cost you thousands more to make habitable.
Finding a surveyor
Whether you choose a homebuyer's report or a building survey, you should always employ a surveyor registered with the Royal Institution of Chartered Surveyors. The best way to find a surveyor is to ask for recommendations from your estate agent or mortgage lender as they will know local companies which provide a good service. Always find out beforehand how much you will be paying for the service and do not be afraid to get quotes from more than one surveyor before you decide which one to use. Although not an absolute requirement it would be foolhardy to purchase a property without employing a chartered surveyor to provide at least a homebuyers report, and ideally a building survey, especially if you are considering a house which has unusual features or potential problems.