When you are thinking about buying a home, there are so many things to consider, whether you are looking at a newer build or older property. One of the most important parts of purchasing a property for home buyers is the homebuyer report. Here, we will take a look at what the homebuyers report is, home survey levels, what condition ratings are, and why homebuyer surveys are so vital before you exchange contracts.
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What is a homebuyers report?
The homebuyers report is just one of the types of surveys you can choose to have carried out on a property. Also called the Level 2 RICS Survey, this report seeks to discover any existing issues with the property and the overall condition of the property that may not be readily apparent to the untrained eye.
A surveyor from the Royal Institution of Chartered Surveyors will visit the property. While this is not an extremely detailed report, it is used to check that a property is in a good condition and has no visible issues that could result in further damage and expensive repairs for the purchaser.
The results of a house survey could have an effect on the overall value of the property and, in some cases, can have a knock-on effect on the mortgage valuation. However, it is important to note that this Level 2 survey will not be suitable for homes that you are seeking to perform renovations on.
What does the homebuyers report include?
The homebuyers report will cover the inspection of a property and such information as background on the house and where it is, as well as the estimated amount it would take to rebuild it (for insurance reasons). It should also include checking for rotten timbers and damp testing, as well as alerting you to larger issues or urgent faults. The drainage of the property will be examined, and issues that might impact value will be reported. The condition of the property will be reported in layman’s terms and rated accordingly.
What do the ratings mean?
RICS home surveys have three ratings to sum up the overall condition of a property. These fall under Rating 1, where no repair work will be necessary, and Rating 2, where there is some need for non-urgent repair. In some cases, you may see Rating 3, which details serious repairs that need to be remedied urgently.
What do you need to consider before choosing a report or survey?
There are more extensive types of surveys available, and to decide whether you need something more than the home buyers report, you should consider aspects such as the age of the building and whether it’s of a regular build. You should also consider whether or not you are planning to perform major renovations or structural alterations on the property and whether you have pre-existing concerns. If you need a full valuation, then this will impact the kind of survey you undergo as not all include a valuation.
Building survey Level 3
You may be wondering about the differences when it comes to a home buyers report vs building survey. The building survey is a Level 3 survey, which is the most detailed option available. It provides you with an in-depth look at a property’s condition and problems, and will inform you of repairs needed. This is a good choice if you are considering buying an older building that might need a lot of renovation. If the property is unconventional, large, or over a hundred years old, this is the best survey to have carried out.
Are there other options?
If you are purchasing a new build property, you may only require a Level 1 survey, which is simple and does not provide any kind of advice or a valuation. A property in new or good condition can benefit from this survey for legal purposes.
What issues might a homebuyers report detect?
A homebuyers report commonly comes back with reports of issues with the electrics or roofing, or problems with damp. Other common issues might include the central heating being damaged or functioning improperly, or problems with the structure of the building.
In this case, your surveyor will be able to advise you of how to remedy these issues. From there, speak to a professional about how much repairs or replacements may cost, as this can lead to you being able to ask the seller to lower their asking price, or fix these problems before you complete.
Should you get a homebuyers report?
Buying a new property is a big expense, but a thorough report is worth the money. It will provide you with the knowledge that there are no issues with the property, or that they can be fixed, and can lead to the lowering of the asking price of the property. However, in some cases, the report can lead to you deciding against going through with a purchase – avoiding an expensive mistake!
Are you looking to purchase a property in South Wales and want to make sure it doesn’t have serious, unexpected issues? Then a homebuyers report is an essential part of your moving process.