Why you should get a HomeBuyer Report or Home Survey?
By Jack Day
Whether it’s your first or your tenth property purchase, a home survey is important because it helps you understand the condition of the home being purchased. While it is not legally required in England and Wales, it is highly recommended because it can identify defects, risks and issues that may affect your decision or the price you are prepared to pay. Without a proper survey, you may discover defects or repair costs that you were not aware of when making your offer.
What is a HomeBuyer Report?
You may still hear the term HomeBuyer Report or Home Buyers’ Survey. RICS now calls this a Level 2 Home Survey. It is one of three levels of RICS Home Survey.
A mortgage valuation is a basic check carried out for the mortgage lender to make sure the property provides adequate security for the money being lent. It is for the benefit of the lender and is not the same as a survey for the buyer. A Home Survey provides the buyer with an expert account of the property’s condition and highlights visible defects, risks and issues that may need further investigation.
This is important because a property’s condition can be a major negotiation tool during the home purchasing process and a primary driver behind the final buying decision. A home that requires significant repair work may justify a lower offer because of the cost involved and could potentially deter the buyer from purchasing it in the first place. Because of this, a survey can provide vital information for the aspiring homeowner.
The three levels of RICS Home Survey
RICS Level 1 Home Survey, previously called a Condition Report, is the most basic of the three levels. It describes the condition of the property, identifies risks and potential legal issues and highlights urgent defects. It is generally aimed at conventional properties built from common materials and in good condition.
RICS Level 2 Home Survey, previously called a Home Buyer Report or Home Buyers’ Survey, is more detailed. It is generally suitable for conventional properties in reasonable condition that are simple in form and layout. It includes advice on defects and on maintenance or repairs that may be required. A Level 2 can be provided as a survey only, or as a survey with a market valuation and insurance reinstatement figure.
RICS Level 3 Home Survey, previously known as an RICS Building Survey, is the most comprehensive option. It provides an in depth analysis of the property’s condition and includes advice on defects, repairs and maintenance options. It is generally recommended for large, older or run down properties, unusual or significantly altered buildings, or where major works are planned.
At BackupTyping, HomeBuyer Reports and other survey reports are among the documents our specialist property typists regularly work with. For more about how surveyors turn site observations and dictation into finished reports, see What Is Audio Transcription for Chartered Surveyors?
When do you need one?
There is no legal requirement in England and Wales for a buyer to obtain a Home Survey before purchasing a property. However, it is strongly recommended. The usual time to arrange one is after your offer has been accepted and before you make a legal commitment to buy.
A survey can make you aware of defects and other issues that could affect the property’s condition, repair costs or value. If problems are found, you may decide to investigate further, obtain quotations for repairs, renegotiate the purchase price or even decide not to proceed.
If you’ve decided to arrange a survey, you can use the RICS Find a Surveyor service to find a suitable professional.
Why should you use an RICS surveyor?
If you’re wondering why you should use an RICS surveyor, the reason is straightforward. RICS Home Surveys are carried out by RICS members in accordance with the RICS Home Survey Standard. Individual RICS surveyors may use the designations AssocRICS, MRICS or FRICS, and the surveyor should have relevant experience of the type, age and construction of the property being inspected.
Where the service includes a valuation, the surveyor should also be an RICS Registered Valuer. RICS members and regulated firms work to professional standards designed to provide a consistent and impartial service.
The surveyor provides the professional assessment, but the finished report also needs to present that expertise clearly. We look at the document production side in Why Report Formatting Matters More Than Most Businesses Realise
Conclusion
If you’re buying a property in England or Wales, a Home Survey can give you important information before you make a legal commitment to buy. It can identify defects, highlight areas that need further investigation and help you understand potential repair and maintenance costs.
Having the correct information about the condition of the home can significantly alter negotiation. A buyer with the right information can consider whether the agreed price still reflects the condition of the property, negotiate where appropriate, or simply decide to explore other options for their next home.
The important thing is to choose the right level of survey for the property. What many people still call a HomeBuyer Report is now the RICS Level 2 Home Survey, while Levels 1 and 3 provide different levels of detail depending on the property and the buyer’s needs.
For surveyors producing reports like these, outsourcing the typing and document-production stage can also save valuable professional time. Our article Fee Earner or Typist? Why Outsourcing Typing Works looks at this in more detail.
Here if you need us, on standby if you don’t.
BackupTyping has been working for chartered surveyors across the nation for over 20 years. If you’re interested, contact us by email or call on 020 7096 1663 now. You can also download our free dictation app to try our service for yourself.
