If you instruct a property survey, your surveyor will carry out all the necessary inspections and research before issuing the formal report, which sets out all the findings from the survey inspection and directs you in relation to recommended further investigations or other actions before you legally commit to the purchase.
Property survey reports are intended to be as clear as possible and are not as confusing as you might think.
Today, we are looking at how to read a property survey, clearing up any queries you may have about these important documents.
House surveys explained – what is a surveyor’s report?
A surveyor’s report is a document which details everything a surveyor has discovered about a property following an inspection. It includes:
- Overall summary of the property’s condition
- Description of the property, including age, location, construction materials and layout
- An appraisal of the property’s condition by each component part; externally, this will include roofs, chimneys, rainwater goods, walls and external joinery. Internally, the survey covers roof voids, ceilings, walls, floors, internal joinery, fireplaces, and fittings. Commentary is provided on foundations and structural movement, identifying and appraising any cracks, ground/foundation movement or frame deficiencies. Damp and timber issues are also covered.
- Visible condition of plumbing, drainage, heating / hot water and electrical systems, advising on specialist inspections if deemed necessary.
- Some reports may schedule defects and risks using a traffic light system: categorising the severity of the problem as urgent, significant or minor.
- Some reports will make clearly signposted calls to action in relation to further investigations, or quotations for repairs and ongoing maintenance, and advice as to potential costs before legally committing to purchase.
- Legal and compliance notes on matters such as boundaries, extensions, alterations or planning permissions, third party rights and any recommendations for further checks by solicitors
- Environmental and safety factors, e.g. flood risks, insulation, energy efficiency and fire safety
- The reports may contain evidence including photographs and diagrams to explain the survey findings
Different types of property surveys
There are different types of property survey depending on the property you want inspected and the information you require.
- Level 1: RICS Home Condition Report – this survey is intended for newer, conventional properties and looks at the property’s condition, risks, potential legal issues, and urgent defects.
- Level 2: RICS Homebuyers Report(with or without valuation) – this survey is for standard properties in reasonable condition, typically less than 100 years old and which have not been significantly extended/altered. It covers everything from a Level 1 survey plus a review of timber/damp issues, drainage, insulation, Japanese Knotweed, and the option to include a valuation and insurance reinstatement valuation.
- Level 3: Building Survey(commonly called a Structural Survey) – this is for larger, older (100+ years), unusual properties, those in poor condition, homes you are planning to renovate, or properties with significant extensions/alterations. It includes everything from Level 1 and 2 surveys plus potential problems caused by hidden flaws; risks such as subsidence, structural movement, woodworm, and dampness; repair options: advice on what may happen if you do not carry out repairs.
- Snagging Survey – this is for new build homes and details any non-compliances with NHBC construction standards, as well as more minor imperfections an
- Limited Defect Report – this is a survey that looks at a specific concern identified by the client e.g. a sagging roof, rotting timber, damp, subsidence or infestation.
How to understand your report
Carefully read your report and take note of what the surveyor has included. Next to observations, you may notice traffic light or condition ratings. These tell you about the severity of any issues:
- Green (Condition Rating 1) – no repair is needed
- Amber (Condition Rating 2) – this defect needs repair or replacement in the future
- Red (Condition Rating 3) – serious/urgent defects requiring immediate attention
Top red flags to watch out for
Some issues are more serious and costly to rectify than others. Pay special attention to the following, especially if they receive a red (3) rating by your surveyor:
- Structural movement (subsidence, cracks)
- Damp/rot
- Roof damage
- Unsafe electrics
- Asbestos or invasive plant species (such as Japanese Knotweed)
- Missing documentation such as Planning or Building Regulation certificates for alterations/extensions
What to do with the information in your surveyor’s report
Firstly, do not panic! It is common to uncover many issues in a survey, especially in older homes. Even if there are numerous “red” findings, it does not necessarily mean the end of the road for your property dreams, and it is certainly better to be forewarned of issues at this stage.
Read the surveyor’s advice and follow any calls to action.
- If you have any questions, ask. The surveyor will be pleased to offer guidance in relation to further enquiries, investigations or actions you need to take before you legally commit to the purchase.
- Get quotes from specialists for major repairs before you exchange contracts.
- Use the surveyor’s findings to negotiate the purchase price
- Discuss major issues with your solicitor and/or mortgage lender
Following these steps and seeking professional advice allows you to make informed decisions about how you would like to proceed or whether you would prefer to walk away. This article has further advice on the next steps after receiving your report.
Common misconceptions
Finally, there seems to be a lot of mystery around surveyors’ reports when really, they are designed to be straightforward and helpful. There are some common misconceptions, however, so please keep in mind:
- A survey and valuation are not the same thing, although a valuation can also be requested.
- A “red” does not mean you should always walk away.
- Some problems sound worse than they really are. Read the notes from your surveyor and get a specialist’s opinion if necessary.
Get in touch
At Trinity Rose, we have years of experience carrying out RICS property surveys. We take pride in our comprehensive but jargon-free reports and hopefully you now feel more at ease about what to expect. However, we are always on hand to answer any questions.
If you would like to arrange a property survey, please click here. Alternatively, if you have any questions, please get in touch with our friendly, knowledgeable team.