How Much Does a House Survey Cost?

If you are buying a house, you should always set aside money for some form of survey. Surveys are designed to give you more information about the property you are buying and can be an important tool in deciding whether to proceed with the purchase or negotiate a better price.

House surveys range in the level of detail they provide and how much they cost. Understanding the differences between surveys will allow you to make an informed decision about which survey is best for your purchase.

Let’s discover how much a house survey costs and why they are so important.

What is a House Survey / Homebuyers Report

A house survey is carried out by an independent surveyor who has no vested interest in whether the property sells. Their job is to examine the property, identify any problem areas, and compile a report with their findings.

Some surveys are inexpensive and only provide a cursory look over the property. These are commonly known as homebuyers reports and will outline how the property compares to a standard checklist.

Full home surveys are much more detailed. Surveyors may meticulously inspect every aspect of a property, including identifying ‘below-surface’ issues. These surveys typically cost more than a basic survey, though prices can vary between surveying companies.

Difference Between Conveyancing and Surveys

When you purchase a property, you will receive a range of information from your conveyancers. Property searches identify all aspects of documentation related to the property. For example, has planning permission been granted for a rear extension?

You can also pay for additional specialist searches, such as water searches, to identify flood risks and any liabilities you may have if buying a property near a watercourse.

Surveys differ because they involve a physical inspection of the property, as opposed to the paperwork searches your conveyancer completes. Both are invaluable, as each provides crucial information about the property you wish to buy.

Difference Between Mortgage Valuations and Surveys

Sometimes buyers opt not to get a property survey because they have already been charged for a mortgage valuation. This is a common misconception, as many think lenders check properties in as much detail as a surveyor.

The truth is some lenders may send someone to physically inspect the property; however, this is becoming rarer. Most lenders now undertake drive-by valuations and do not inspect the property beyond a visual confirmation that the exterior looks suitable and that the property exists.

A lender valuation serves a completely different purpose. The lender is concerned about risk and will conduct a valuation to ensure the property is of suitable construction for their loan and that the valuation is accurate.

A survey, on the other hand, is designed to reveal defects that a mortgage valuation would likely miss.

Type of House Surveys

There are three main types of survey:

• Condition Reports or Level 1 Surveys
• Homebuyer Survey or Level 2 Surveys
• Full Building Survey or Level 3 Surveys

In rare cases, you may need a specialist survey if the property is listed or has unusual construction materials. Condition reports are basic surveys, and a surveyor might only spend around thirty minutes looking around the property, recording any obvious issues in their report.

Homebuyer surveys are more detailed, with the surveyor working down a checklist of factors to inspect.

Full building surveys encompass both Level 1 and Level 2 aspects and additionally examine the property’s structure in detail, scrutinising any areas of concern thoroughly.

Factors that Can Affect the Price of a House Survey

The price of a survey largely depends on the amount of work a surveyor needs to complete. As a general rule, the lower the level of survey, the cheaper it is to commission.

Another factor that impacts the cost is the company you choose. Some companies offer deals or discounts for certain survey types, and you may find that the cost of a full survey with one company is comparable to a Level 2 survey with another.

The best approach is to shop around and get several quotes for the type of survey you want.

Boon Brokers can refer a suitable surveyor based on your requirements.

What Happens if the Report Finds a Problem

If the report highlights a problem, you need to evaluate the gravity of the issue. Problems are not created equal: some can be remedied easily, whereas others will require extensive time and effort to fix.

If you do not want to handle the work yourself, you can request that the seller remedies the problem before the purchase completes.

If the seller does not have the financial means or inclination to fix the problem, you can ask them to reduce the purchase price to reflect the time and cost of repairs.

If the seller is unwilling to reduce the price or carry out remedial work, you should walk away if the problem is severe enough to impact the property value.

Sometimes sellers may overestimate their bargaining position, but recurring issues will soon make it clear that the property’s value must reflect any problems.

Is a Survey Worth the Cost?

Absolutely, and if possible, you should commission a level 3 survey.

A good example of why surveys are worthwhile is if a property has dry rot or subsidence. You may not notice this during a viewing, and buying without a survey could result in repair costs that exceed the property value.

When you factor in the potential expense of serious property issues, the relatively small cost of a survey is usually a no-brainer.

Get Advice from a Mortgage Adviser

Boon Brokers is a Whole of Market Mortgage, Insurance and Equity Release Broker. Boon Brokers provides fee-free mortgage advice and can recommend a suitable surveyor for your requirements.

Contact Boon Brokers to discuss your property purchase, obtain a mortgage in principle, and get tailor-made buying advice today.