Why have a property Valuation?

Why have a property Valuation?

House Valuations or surveys are an all-over health check on a property, which gives an indication as to its exact current structural state and if the correct survey is purchased, it will also give an approximation of the value.

Save time and money

At the time when a property is about to be sold a Property valuation is most commonly carried out, and can often save the potential buyer time and money if there are any major structural problems, as what is revealed from a survey or house valuation can bring about a change in the sale price. A survey should always be performed before any contracts are exchanged on the property.

There are many occasions when a property valuation or survey will make the buyer decide that they do not want to go ahead and purchase the property after all. The basic property valuation or survey will be performed on all parts of the property which the surveyor access, so the state of the floors underneath, carpets etc. will not be monitored. Nor will the water supply or wiring within the house influence the survey report, although their condition will be commented on.

Three types of survey

There are traditionally three types of survey in the UK -a house valuation, a homebuyers report or a structural survey.

Mortgage valuation report

The mortgage valuation report is the simplest in that it does exactly what it says on the can –a very simple property valuation giving an estimate of the value of a house, this is commonly carried out for the lender.

Homebuyers report

The next form of house valuation is the homebuyers report. This is a more extensive survey carried out on behalf of the prospective purchaser this is in fact a visual survey of the overall condition of the property. The final and most expensive property valuation is the full structural survey, this is a much more detailed report that could actually involve other investigations or specialist reports too, such as damp and timber infestation -these would generally be applicable to older properties- to determine the condition of the property.

Building Survey

The surveyor, as part of a full property valuation, will carry out a structural survey to assess the condition of the house. The report of the building survey details the surveyors findings. Although this report can run over 20 pages, it is worth paying attention to the liability clauses – don’t assume that because you commissioned the property valuation survey that you can sue the surveyor if the house collapses the day you move in.

Often the surveyor will only list visible defects dependant upon which house valuation or survey that you have paid for. It is not their job to check behind every cupboard and lift up every carpet. The surveyor will not be able to give you a definitive answer to whether you should buy the house, the property valuation is only a guide and you specifically need to ask for the house or property valuation as an aside to the building survey. Remember that often a buyer may view a defect in a different light. Surveyors will attempt to list every defect they can find when commissioned to perform a property valuation, and even the best houses may seem to be riddled with faults judging by the size of report, so do take into account that the majority of houses will have some defects.

The main reason for the survey is to give you a priced list of minor and serious work needed. The cost of work will tend towards the pessimistic side. Use this list to re-approach the seller and negotiate a lower price. If the house price plus the cost of the necessary work is higher than the market value of the property, you should seriously consider whether the house is worth buying.

Article courtesy of www.direct-valuations.com