Do I Need a Homebuyers Survey?: A Cautionary Tale with a Happy Ending!

by Paul Hajek on

If you are one of the 4 out of 5 Homebuyers who do not have a full survey or a RICS Homebuyers Survey and Valuation carried out on their new home, think again.

Many excuses are used for failing to carry out a survey; cost; extensive local knowledge; age of the property, old and new.

A common excuse is to believe that a new house built within the last ten years has a NHBC guarantee. This is misleading as there is no such thing as a NHBC guarantee, merely a warranty. The warranty is really only effective, unless in extreme cases, for the first two years after the property was built.

Here is a cautionary tale about buying a property, not in your area, where you have little knowledge of property or the surrounding area.

Clients of mine were relocating because of a job move to the North West of England (they currently reside in Chipping Sodbury).

They did a bit of detective work and scouted various locations, and eventually found a property overlooking a park at a good price but in need of modernisation.
By taking our advice as Conveyancing Solicitors(we always advise clients to have at least a Homebuyers’ Survey) they instructed a local Surveyor to carry out a Homebuyers Survey.

Most of the recommendations were not a surprise, given the state of the property. The usual suspects included; penetrating damp; condensation; no insulation; decay in timbers; internal decoration; new kitchen; damaged drains; overgrown trees; small area of asbestos and boundaries in disrepair.

It was the final summary which took our clients breath away, and it was information that without the Surveyors local knowledge of the area, would not have been easily available to them,. The Surveyor concluded:-

“While the property is located in an enclave of prestigious houses overlooking a park, we would point out that within 200 metres of the property, it is possible to buy a terraced house for as little as forty thousand pounds.

This could severely affect the long term value of the house and much depends on the immediate adjacent area takes, as to whether it will prove to be a good investment”

Although, my clients would have happily endured the renovation of the property, the uncertainty of a potential reduction in the value of the property, through circumstances beyond their control, was an unacceptable risk.

It would remain to be seen whether my clients would have lost money. But for them, the fact that the cost of a survey has ensured that they will not potentially lose tens of thousands of pounds has been money very well spent.


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