Understanding your surveyor’s report

Understanding your surveyor’s report and knowing which type of survey is best for your property purchase can seem daunting. Here we discuss the different survey types and what to look for in the surveyor’s report.

Upon securing a property and moving towards a purchase, the next step, once your offer has been accepted and solicitors informed, should be to instruct a professional, independent surveyor.

A surveyor’s report can help you understand the condition of a property and what actions to take. Survey reports often seem alarming, with complex wording and recommendations that might confuse those unfamiliar with the industry.

Here we provide guidance for understanding your surveyor’s report including what to expect from different types of property surveys, how to interpret your surveyor’s report, and tips for taking action based on its findings.

What is a surveyor’s report?

A surveyor’s report—also referred to as a property survey report or building surveyor report—provides an in-depth assessment of a property’s condition.

Surveyors write their reports in a logical sequence, describing all external parts (walls, roofs, floors) followed by internal features (ceilings, walls, fireplaces), services (electrics, plumbing), and outbuildings or grounds. Most reports summarise the significance of any defects, using a traffic light condition rating system:

• Green (Condition rating 1): No immediate repairs are needed, but normal maintenance may be required.
• Amber (Condition rating 2): Defects or damage that will require attention but are not urgent.
• Red (Condition rating 3): Serious defects requiring urgent repair or replacement.

Each report includes a summary of findings, conclusions, and recommendations for necessary actions.

Types of property surveys

We recommend all clients have a full building survey carried out, even on recently renovated properties. Unless you’re qualified, you may not know what to look for. For instance, a brand-new kitchen may seem perfect but could have installation flaws.

Identifying issues in advance is crucial when committing significant sums to a purchase.

Most surveyors offer three types of surveys: a building survey, a homebuyers report, and a condition survey.

Building Survey

A building survey (also referred to as a structural survey) is the most thorough type of report. Surveyors move furniture, open doors, and inspect every nook and cranny without causing damage.

The surveyor reports on all defects, provides estimates for required works, and explains potential risks of leaving issues unresolved. Building surveys often include images to illustrate specific concerns. This survey is highly recommended for older properties or those requiring significant works.

Homebuyers Survey

A homebuyers survey is a more common choice for mainstream buyers and is often added to the mortgage valuation. However, we recommend using an independent surveyor to ensure impartiality.

This survey identifies issues such as damp or subsidence and highlights any areas that fail to meet current building regulations. It also includes advice on necessary repairs and ongoing maintenance. A homebuyers report will often contain a market valuation and rebuild cost.

New Build Survey

If you are purchasing a newly built property with an NHBC guarantee, a snagging survey may be beneficial. While the property may appear perfect, an independent surveyor can identify snagging points for the developer to address before you move in.

Valuation Survey

Do not confuse a mortgage valuation survey with a condition survey. Although the lender requires and charges for this survey, it serves the lender’s interests by confirming the property’s value, not assessing its condition.

Understanding your surveyor’s report

Survey reports sometimes seem unduly pessimistic, but it’s important to remember the surveyor’s role is to highlight defects and future maintenance concerns. Reports may appear gloomy even for well-maintained properties.

The traffic light rating system allows you to quickly identify significant issues. However, some items, especially services like electrics or plumbing, might automatically receive a Condition Rating 3 (Red) due to the surveyor’s limited testing abilities.

Even if no visual defects are present, they may recommend further investigation.

This doesn’t mean the property has hidden problems; it simply means additional expertise (e.g., an electrician or gas engineer) is required to assess potential risks. Properly understanding your surveyor’s report can help you avoid panicking unnecessarily.

Specialist reports

When serious defects are identified, such as cracking or structural issues, the next step is to obtain quotes from contractors or commission further investigation from specialists, such as a structural engineer.

Specialist reports are sometimes required by mortgage lenders, and in such cases, both parties may need to negotiate who bears the cost.

Down valuation

A down valuation occurs when a property surveyor, acting on behalf of the lender, evaluates the property and concludes that its market value is lower than the price agreed upon by the buyer and seller. If a mortgage survey results in a down valuation, you have options:

1. Dispute the valuation with the lender if you believe it is unfair.
2. Renegotiate the purchase price to reflect the lender’s valuation.

In either case, you may need to provide supporting evidence, such as your surveyor’s report or examples of recent local sales to justify your position.

What to do with your surveyor’s report

Once you receive your survey report, there are several steps you can take:

• Renegotiate the price: If costly repairs are necessary, use the findings to renegotiate with the seller.
• Request repairs: Ask the seller to fix specific defects before completing the sale.
• Proceed with caution: If the report highlights minor issues, you can move forward but plan for future repairs.
• Consult with experts: If necessary, consult experts or contractors for detailed advice on specific areas of concern.

Buying property in the UK

With years of experience in reading survey reports, we understand the process can be overwhelming. Taking a pragmatic approach and asking the right questions can help avoid nasty surprises later.

Remember, if you have queries about your survey report, ask the surveyor for clarification, ideally providing detailed questions to streamline the process.

If you’d like further information about understanding your surveyor’s report or advice and assistance on other aspects of your property purchase, our team of experts is here to help. Contact us to learn more about our services.