Getting a survey done on a property you're buying can save you money, time and stress. But, it can be a nerve-wracking process, as it can make or break your deal.
If the survey reveals problems with the home you want to buy, it’s important to understand what steps to take next.
The good news is, a ‘bad’ survey doesn’t have to mean an end to your hopes of moving into your dream home. It might be an opportunity to negotiate.
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1. Why do I need a survey when buying a home?
The aim of a survey is to provide an independent account of a property’s condition.
First off, it’s important to understand the different types of survey you can choose from.
The Royal Institute of Chartered Surveyors (RICS) currently offers three types of home-buyer survey.
Level 1 is the most basic survey and Level 3 is the most comprehensive. Most people go for the one in the middle opt for a Level 2 survey.
The right choice for you will depend on the property you're buying, and your personal attitude to risk.
Find out more about the types of survey available to you.
2. What does a ‘bad survey’ look like?
When you get your survey back, you may be eager to see what it contains.
While you might think the ideal scenario is to get a report with as few concerns raised as possible, a survey nearly always finds some issues.
In most cases, a survey will list ‘problems’ or ‘issues’ – often in order of severity.
With a Level 2 RICS survey, a traffic-light system is used to highlight defects:
Red means serious or urgent repairs are needed
Orange means investigations may be advised
Green means things can be readily cared for under normal maintenance
With a Level 3 structural survey, the report will provide more details about the defects. It may also offer advice on the next steps you should take.
3. What are the most common house survey issues?
A survey will detail a range of issues and defects that might affect the property’s value.
These might include:
Damp problems, from leaky roofs, rising damp or poor ventilation
Electrics not having a certificate and defective wiring
Old heating systems
Roofs needing work
No smoke or carbon monoxide alarms
Poor drainage
Lack of building regs approval for extensions or alterations
Certain issues might set the alarm bells ringing more loudly than others. For example:
Japanese knotweed – this invasive plant has underground roots that will damage anything in its path. It is very serious as it can make a home ‘un-mortgageable.’ If you’ve got your heart set on a property with knotweed, see if the current homeowners have a treatment plan in place.
Subsidence – this happens when the ground underneath your property moves, affecting its stability. This can cause cracking to the structure of the property. It can be fixed through a process known as underpinning. But finding an insurer willing to cover a house that has suffered subsidence can be tricky.
Rot – dry rot is a type of fungus that can weaken the timber within a property and can spread. If dry rot is discovered, you’ll want to confirm the extent of the problem with your surveyor and see if it’s treatable or if the timber needs replacing.
Woodworm – this is beetle larvae burrowing into timber, causing structural damage. The tell-tale sign is small, rounded holes on the wood. Sometimes it can be treated, but sometimes the wood will need to be replaced.
Damp – damp patches are often most clearly visible on the ceiling, but you need to check everywhere. Many forms can be treated, though costs can run into thousands of pounds.
Once you’ve received your written report, you might want to phone your surveyor so you can go through the findings.
They should be willing to answer any questions you have about the written report at no extra cost.
Your surveyor is not likely to comment on whether you should proceed with the purchase or not.
The surveyor’s role is only to flag issues and to offer basic advice on repairs and ongoing maintenance requirements.
The final decision on whether to buy the property following a survey is yours alone.
4. What can I do about a bad house survey?
Depending on the results of the survey, you may want to do some (or all) of the following:
Talk to the seller about the findings for full transparency
Commission a further survey, which will look at identified defects such as damp, invasive weeds and timber decay, in greater detail
Get issues investigated further by an independent expert or specialist as well as estimated costs of repairs
Call in a builder to investigate
If a major problem or problems are uncovered, you have a few different options:
Ask the seller to fix the issue before proceeding with the purchase
Negotiate the asking price down to account for the cost of fixing the problem yourself.
If it all seems too much, the issue may prompt you to decide to pull out of the purchase altogether.
Dealing with a bad survey? Find out more about the different types of surveys available.
5. Is it the buyer’s or seller’s responsibility to fix survey problems??
If you decide you’re still keen to buy the property despite any issues, it’s time to negotiate.
Either commission an additional survey to look into the detail of the problems and get an estimate of what is involved in fixing it.
Or, ask a builder, damp specialist or other tradesperson to look at the property and quote for the work that needs doing.
For example, if it’s going to cost you £2,000 to deal with damp, you might lower your offer by the same amount.
You can negotiate via your solicitor or estate agent. Email works best and you can detail the issues highlighted by the survey and the amount for each solution.
The seller may then choose to organise for the problems to be fixed themselves, or they may accept a lower asking price based on the work that needs doing.
If your seller won't accept a lower offer, you'll need to decide if it’s still worth going ahead with the purchase.
If an agreement cannot be reached, the seller may pull out and put the home back on the market.
What happens if the house is devalued?
Sometimes a survey can reveal major problems that are going to cost a lot of money to fix.
That can mean the home you want to buy ends up being worth less than what you've agreed to pay for it.
Mortgage lenders can sometimes give what's known as a 'down valuation' when that happens.
That means they'll reduce the amount of money they're willing to lend you to complete the purchase.
Find out what to do if a home you want to buy gets down valued.