A Homebuyers Survey, also known as a Homebuyers Report, is the most common type of property survey available and can be used for all types of properties. It will flag major issues with your home, but won't cost as much as a more thorough survey.
When you buy a house, you take on a reasonable amount of risk. For example, you may buy a property only to later discover underlying structural issues that are going to cost you a big chunk of money in future repairs. Getting a RICS Homebuyers Survey completed on any potential property you may purchase will remove a huge amount of this risk.
Although some of the issues that surveyors uncover may not be of a huge concern, having that information to hand will put you in a much better position to negotiate on the price and terms as you will know the future hassle and cost of buying that property. In this guide, Compare My Move will explain the Homebuyers Survey to help you with your research.
Typically provided or accredited by the Royal Institution of Charted Surveyors (RICS), a Homebuyers Survey is what replaced the Home Buyer Survey & Valuation in March 2010. As part of this update, surveyors are no longer required to deliver a valuation of the property, meaning that they do not have to be registered valuers in order to undertake the survey. This now gives the home buyer two options when it comes to getting a survey of this type: either a Homebuyers Report with survey or a Homebuyers Report with survey and valuation.
The major benefit of this survey is that it's easy for the consumer. This isn’t just due to the increased options available, but also because it has an easy layout where you can find information via colour coding and energy efficiency considerations. The survey can also only be carried out by RICS certified professionals, providing peace of mind that their report is professional, comprehensive and considers the areas that are most important.
It is worth noting that the surveyor will not lift any carpets or check the condition of the wiring in the property. This is why older properties or properties that are clearly in bad condition should undergo a more thorough survey.
A Homebuyers Survey can be used for any type of property, from a standalone house to a flat. It is the most popular type of survey for home buyers as it's detailed enough to highlight any major issues, but doesn’t cost as much as a more thorough report.
For this reason, it is best suited for buildings that do not have any obvious issues or buildings that are not high risk like old or period properties. For higher risk properties, it is worth using a much deeper survey that will give you a better idea of any costly or potentially costly issues with the building.
For new builds or nearly new builds, there's a possibility that a Homebuyers Report is not required, this is especially true of new builds that are still under warranty. However, in these cases it is worth paying particular attention to the warranty and what it covers. For example, some areas such as damp and condensation are not always fully covered as part of the agreement and so it may be worth getting it checked.
When the survey is undertaken, the surveyor will be looking at a number of specific areas that often contain common issues in the majority of buildings. Any indicators of potential concern will be noted and included in the report for you to read. It will also include background information on the property and the location. Most Homebuyers Reports are sent via email, although some are sent via post.
Structurally, the surveyor will look at the condition of the insulation and damp-proofing as well as testing for any current signs of damp. If damp is flagged in your report, you can arrange for a Damp Survey to gain a deeper understanding of the issue. They will also look at drainage (although they will not look specifically at the drains), signs of rot or woodworm and also potential threats to the structure. Any urgent or major faults that need immediate attention or may negatively impact the value of the property will be flagged.
The report will outline details of the findings of the survey and also the desk research undertaken by the surveyors. If you opted for a survey and valuation, then this will also include a current valuation of the property. The Homebuyers Survey will also take into consideration an estimate for the cost of rebuilding the property, this is particularly important for insurance purposes where you will need to provide this figure to gain full cover.
The price of a Homebuyers Survey starts from around £350 for properties up to £99,000. Though the cost of a Homebuyer Survey will vary depending on the size of the property as well as other factors, it typically costs around £500 for a house priced between £100,000 and £249,000.
Like most aspects of moving house, it is always worth getting quotes from surveyors in order to get the best price for you. However, when doing this it is important to make sure that all those contacted are established and RICS regulated. To know when you need a surveyor as well as factoring in the other costs of moving home, you should use a moving checklist to help.
We've put together the average cost of a Homebuyers Survey for a range of property prices.
|Property Price||Avg. Cost of HomeBuyers Survey|
|up to £100,000||£380|
|£100,001 - £200,000||£420|
|£200,001 to £300,000||£500|
|£300,001 to 400,000||£570|
|£400,001 to £500,000+||£640+|
To create the table Compare My Move took the average costs from a sample of 20 RICS Chartered Surveyors and Building Societies across the UK. Note that true survey costs will vary depending on your particular situation and area.
The actual Homebuyers Survey will take between 2 to 4 hours to complete, with a 3 to 5 working day wait for the report to be produced. When it comes to your Homebuyers Report it is good to understand how much time it will take to complete the survey as well as how long it will take to get the results as it can help you plan for your overall move.
Usually buyers get a Homebuyers Survey completed after they have had an offer accepted. For this reason, you should start getting quotes as soon as you possibly can. This is because of the upfront cost of a survey and the fact that this can be wasted money if you are unable to find a price that both yourself and the seller are happy with. If there is somebody currently living in the property you will need to agree with them ahead of time when the survey will take place.
Your estate agent will usually suggest that you make the offer on the condition that a survey does not produce any significant or costly findings. Once the survey is complete, there is nothing to stop you from going back to the seller and attempting to negotiate the house price based on the findings.
In most cases, a Homebuyer Survey will take between 2-4 hours to complete. This varies depending on the size of the property as well as the accessibility the surveyor has to various parts of the house.
If possible, it's good to ask the surveyor what access they will need ahead of time and make sure this is available for their visit. Not only will this ensure that the survey is completed quickly, but will also ensure that no crucial areas are neglected in the report.
Once the survey has been completed it is likely to take around 3-5 working days for your Homebuyers Report to be produced and delivered. This can vary based on the size and condition of the building as well as how busy the surveyor is.
Since the report was updated, a new traffic light system has been adopted. It's written in a way that's easy to understand without difficult jargon to decipher. This has been done for consumers to understand exactly what the issues are, the impact they have and how severe they actually are. As the name suggests, the traffic light system works based on three colours: red, amber and green.
RICS have shared an example of what a homebuyers survey report looks like.
Green refers to ‘Condition Rating 1’ and indicates that the area referenced needs no repairs and has no area of concern, these should continue to be maintained in a similar way to previously.
Amber refers to ‘Condition Rating 2’ and highlights areas with defects that need repairing or replacing but are not considered as urgent. These areas are unlikely to impact the overall value of the property but are likely to need some maintenance or repair in time.
Red refers to ‘Condition Rating 3’ and highlights defects that are in need of urgent or series repair, need to be replaced or investigated immediately. These are the areas that should be seriously considered as part of the overall purchase. They may be areas that make the purchase void, or they may be areas that warrant re-negotiation based on potential repair cost.
Wondering what to do if you get a report filled with red? You can plan your response with our guide to dealing with bad survey results.
When you are buying your new home, there may be some confusion over which type of survey you need or should get. Typically, surveys come under three categories; valuations, Homebuyers survey and Buildings survey. Each have pros and cons depending on your situation, we cover some of these below.
|Homebuyers Survey||Building Survey||Valuation|
To properly understand your survey options, we've put together detailed guides on what is a Full Structural Survey and what is a Valuation Survey. We've also explained the Snagging list for new build buyers, and produced a guide on Listed building surveys for old and historic properties. If your new property is based in Scotland, read our guide on The Home Report to get better informed.
So, a Homebuyers Survey, is it worth it? Generally speaking, yes, but the decision is yours to make. It's always recommended to get a property survey conducted whenever buying or selling a property as it's vital you know the property's condition. As shown above, there are a variety of positives to having a Homebuyes Report.
If you're purchasing a property, you want to know what you're buying before you commit. A Homebuyers Survey is the cheapest out of the comprehensive surveys. The report will state whether or not the property is worth the asking price, saving you money in the long run as you can either re-negotiate the price to cover the repair costs, or back out of the sale altogether. You need to know if you are financially capable of maintaining the building whilst you're staying there, ensuring it's a safe place to live now and in the future.
A Homebuyers Report is also worth it for the seller too. If the buyer presents you with negative results from their survey and wants to lower the asking price, then you need something to compare to. You need to hire your own trusted surveyor to confirm and compare the report with, ensuring that you can justify lowering the price.
We hope this guide has helped you understand what a Homebuyers Survey is and that you're fully informed on your surveying needs. When the time comes, you can use Compare My Move to compare and save on your surveying costs by comparing the best and most respected surveyors in the UK. Our surveyor partners are RICS accredited and come fully verified: just fill in a quick and easy form and save on your surveying today.