A house offer subject to survey means an offer has been made on a property. It is valid provided the property survey results are satisfactory. This allows the buyer to withdraw their offer or renegotiate the price if a survey flags concerns.
Below we look at when a home would be sold subject to survey and what this means for the buyer and seller.
What is Subject to Survey?
Subject to survey means the purchase price or deal isn’t final until a survey confirms the property's condition. The buyer is not bound to their initial offer.
Offers in England and Wales are not legally binding until the contracts are signed and exchanged. In Scotland, the seller arranges the survey in the form of a Home Report. This is given to every potential buyer, allowing them to make an offer based on the details in the report.
Why You Should Make an Offer Subject to Survey
The list price for a home isn’t always what the home is worth. When you make an initial offer, subject to survey provides leeway to renegotiate or retract your offer based on survey results.
Below we look at the key reason why a buyer would want to make an offer “subject to survey”:
Financial Security
Without a survey, buyers risk buying a home requiring costly repairs. Having a survey is a sound financial decision. Submitting an offer subject to survey allows you to retract or negotiate your offer in the event issues are found.
Peace of Mind
A survey can provide buyers with peace of mind, giving them an understanding of the home’s condition. If a survey returns good results, you can be safe in the knowledge that your investment is sound. It can also prepare you for any repairs, allowing you to budget and plan.
Negotiation Power
The results of a survey can provide leverage in negotiations. Your report may contain evidence of issues in the home that need to be rectified. You can ask the seller to lower the price of the home to balance the cost of repairs.
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Types of Surveys and Which One is Right for You
Level 1 (Condition Report)
The Level 1 survey, previously called a Condition Report) is ideal for newer homes and properties in good condition. It is fairly basic and priced at the lower end of the spectrum.
Level 2 (Homebuyer Report)
Level 2 is the most popular survey among home buyers. It is more comprehensive than Level 1 and will review visible defects in the home. This includes reviewing its structural integrity, overall condition and any developing problems. It is suited for the majority of homes built within the last 50 years, in good condition and built with conventional materials.
Level 3 (Building Survey)
The most in-depth survey, Level 3 includes an inspection of every accessible area of the property, including outhouses
This level of survey is recommended for the following properties:
- Older or historic homes
- Homes in poor condition
- Properties with extensive renovation work
- Unusual homes (such as self-built properties)
- Neglected or abandoned homes
- Properties with significant structural issues
- Large investments
Cost Overview
Below we look at the cost of different surveys available to buyers:
| Survey Type | Home Survey Cost* |
|---|---|
Level 1 (Condition Report) | £380 |
Level 2 (Homebuyer Report) | £445 |
Level 3 (Building Survey) | £629 |
*Data taken from Compare My Move’s users
Which Survey Should You Choose?
The survey you opt for will depend on the type and age of the home you are buying. It is also based on how much detail you want from your survey. As a rule of thumb, the older the home, the more in-depth the survey should be.
If you are buying a fairly modern home in good condition, a Level 2 survey will more than suffice.
The Level 3 survey is the most expensive but is thoroughly recommended for an older home. Although Level 2 is the most popular type, it may not be sufficient for historic homes or those in poor condition. The cost of a Level 3 could be a small price to pay if the survey saves you money when negotiating the price of the home.
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What to Do After Your Survey: Outcomes and Next Steps
If the Survey Finds No Major Issues
If the survey finds no major details, all parties can proceed with the transaction. Contracts can be exchanged, making the offer legally binding.
A survey without major concerns is positive for both the buyer and the seller. The buyer can purchase the home knowing their investment is sound. The seller can sell their home without issue or having to lower the price.
If the Survey Reveals Problems
If problems are found in the survey, it’s important to know the nature of these issues. Smaller or cosmetic concerns may be fairly easy and cost-effective to remedy.
If the issue is structural, it is a bigger and more costly concern. Problems such as damp, electrical wiring or plumbing issues can also be expensive.
Options for the Buyer
If your survey has yielded poor results, you can consider the following:
Renegotiate the Price: Use the survey report to discuss and negotiate the property price based on required repairs.
Request Repairs: Ask the seller to make (and pay for) any necessary repairs before the sale is completed
Walk Away: If the issues are too severe or the seller is not open to negotiations, it may be wise to walk away.
Impact on Mortgages
Serious defects might affect a mortgage offer, but this may not be the result of a survey. When buying a home with a mortgage, the lender will require a valuation. Be aware that a mortgage valuation is not the same as a survey.
The mortgage valuation ensures the home is worth the amount they are lending you. If the valuation gives them reason to believe the home is not worth the asking price, they may reduce or withdraw your mortgage offer.
Common Concerns About Offers Subject to Survey
Will it Weaken Your Offer?
An offer subject to survey may not weaken your offer. It tells the seller you are serious about the property, as you are willing to pay for a professional survey on the home.
If another buyer submits an offer that is not subject to survey, some sellers may be inclined to accept their offer. Being nervous about a home survey is normal. Surveys can make sellers nervous as there is a chance the buyer will want to make a lower offer or pull out of the sale.
How Long Does the Process Take?
The survey itself can be completed within a day. Buyers will then usually receive their survey report within three to seven working days, depending on your surveyor and how busy they are.
You will need to allow time to find a qualified surveyor and arrange a time for the survey to be completed. This will depend on the availability of the surveyor and the access to the home.
Can You Negotiate After the Survey?
Your survey report gives you excellent leverage when it comes to renegotiating the price of the home. As it will have been completed by a qualified surveyor, it will hold weight in negotiations if issues are found on the property.
Compare & Save on Your Property Survey
Regulated property surveyors
Used by over 1 million people
Protect Your Investment, Always Get a Survey
Arranging a survey is a great way to protect your investment. The survey can provide essential information and prepare you for any work required. It provides peace of mind that the home is worth the price you are paying for it.
Without a survey, you may buy a home with hidden defects. A survey is a small investment that could save you thousands of pounds in the long run.
Compare My Move can connect you with up to 6 local qualified surveyors. Save up to 70% on your costs when you fill out our simple surveying comparison form.
All partners need to meet our strict verification process before joining our network. Those offering surveys must be registered with The Royal Institution of Chartered Surveyors (RICS).
