Revealed: What Do Surveyors Check When Valuing Houses?
Updated: December 2024
When valuing houses, surveyors assess the property's condition, structural integrity, key features like roofs and drainage, and potential risks such as subsidence or hazardous materials. They also consider factors such as size, layout, age, location, and amenities, using market trends and local sales to determine the property's true value.
Key Takeaways:
- Spot Costly Issues Early: Surveys reveal structural problems like damp or subsidence, saving thousands in repairs.
- Choose the Right Survey: An RICS Level 2 survey averages £403, while a more detailed Level 3 costs around £854 but can provide critical insights for higher-value properties, protecting your investment.
- Know the Real Value: Surveyors assess structure, location, and market trends to ensure you pay a fair price.
Surveyor: "Charming, yes. Structurally sound? Let’s not get ahead of ourselves! "
What is a Property Surveyor
A property surveyor is a qualified professional who examines and evaluates the condition of residential or commercial properties. They play a key role in the home-buying process by assessing structural integrity, identifying risks, and providing detailed reports on a property's condition. Their expertise helps buyers make informed decisions and understand the true value and potential issues before purchase.
What do Surveyors Look for When Valuing a Property?
Did you know, 70% of homebuyers regret skipping a property survey, a crucial step in assessing how much your house is worth.
Understanding what surveyors check is essential to prevent costly surprises. Let's dive into these vital evaluations to ensure your investment is sound, focusing on what surveyors look for to determine a property's true value.
A surveyor thoroughly inspects every part of a property for defects, issues, and other potential issues to guarantee that the house is structurally sound and safe. They also value the property to give buyers in-depth insights about possible remedial work that may affect the offer price.
Key Property Information
The survey report will give information on the following:
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Property type
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Year it was built
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Year it was extended or converted (if applicable)
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Number of rooms
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EPC rating
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Environmental impact rating - considers the risk of flooding or adverse nearby developments
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Type of central heating (gas, electric, etc.)
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Basic information about the local environment and grounds
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Structural Integrity - includes looking for cracks, water damage, or uneven flooring
Property’s Exterior
They’ll look at the following:
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Chimney stacks
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Roof coverings
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Gutters
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Rainwater pipes
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Outside walls
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External doors
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Windows - examine signs of wear and tear, such as rotting wooden frames, rust on metal frames, or deteriorating uPVC frames
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Finishes
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Porch or conservatory
Property’s Interior
A surveyor will look at:
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Roof structure - look for internal signs such as water stains or sagging
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Walls and partitions
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Ceilings
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Floors (if not covered)
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Built-in fittings
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Fireplaces and chimney breasts
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Staircase
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Bathroom fittings
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Storage Areas - include cupboards, especially under stairs or in damp-prone areas
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Loft - assess for possible issues like rot, structural damage, or inadequate insulation
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Dampness - assess walls and windows for dampness
Any Suspected Dangerous Materials
If your property surveyor thinks asbestos might be present in your property, they will recommend further investigation to ensure your safety.
Basic Check of the Main Services
Surveyors will visually inspect the services below:
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Water
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Gas/oil
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Electricity
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Heating
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Drainage
Review of the Grounds
Surveyors will visually inspect the following:
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Boundary walls
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Fences
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Footpaths
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Decking areas
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Permanent outbuildings - include garages, summer houses and sheds of significant sizing
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Any common areas
Others Potential Checks
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Japanese knotweed - identifies the presence of this invasive plant
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Subsidence - this may lead to structural damage and impact the safety and value of a property
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Potential legal issues - examples include building regulations and planning permission
The Role of a House Surveyor
You can look for qualified surveyors on the Royal Institution of Chartered Surveyors (RICS) or the Residential Property Surveyors Association (RPSA). Their primary responsibilities include:
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Assessing structural health: They look for signs of stability, wear, or damage.
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Identifying potential risks: They look for subsidence or structural movement that could lead to issues in the future.
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Evaluating property features: Surveyors also assess the condition of key features like roofs, foundations, and damp-proofing systems.
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Conducting safety checks: They check for hazardous materials or construction faults.
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Providing expert advice: Surveyors offer insights on the property's condition which can help in negotiations and decision-making for potential buyers.
Here's some advice from our in-house property expert Paul:
In our experience, hiring the right surveyor is one of the most important steps in understanding your property’s condition. I always recommend choosing a professional who is not only qualified but also has extensive experience with the specific type of survey you need.
In my opinion, a skilled surveyor with an eye for detail can spot issues others might miss, ensuring you have a clear and accurate picture of your property. This knowledge can make all the difference when negotiating a price or planning future repairs. At the end of the day, it’s about making informed decisions and protecting your investment.
Different Types of Survey
The details you’ll receive in your report depend on the type of survey you choose. The more detail you want in your survey, the higher the survey level, and the more you’ll need to pay.
The Royal Institution of Chartered Surveyors (RICS) provided new formats for home survey reports last March 2021. Here are the different types of RICS home survey level available in 2024.
According to data, 61% of buyers chose the RICS Home Survey Level 2, while 33% opted for the same survey with a valuation included, and only 6% selected the more detailed RICS Home Survey Level 3..
The data suggests that most buyers prefer a mid-level inspection possibly due to confidence in the property’s general condition or the cost and time involved.
Homebuyers choosing a RICS Home Survey Level 2 or Level 2 with Valuation saw an average property price of £283,000, with survey costs averaging £403 and £439, respectively. Meanwhile, those opting for the RICS Home Survey Level 3 faced an average property price of £407,000 and a survey fee of £854.
Matthew Cumber, Managing Director at Countrywide Surveying Services, commented:
“The fact that fewer than one in ten property purchases had a Level 2 Survey or above in Q1 2024 presents a highly alarming statistic. It is a figure which leaves a huge number of buyers open to immediate or future risks, unforeseen costs, disruption and upset on what remains one of the most complex and emotive financial journeys they are ever likely to embark upon.
“Due to a sustained lack of awareness, a survey can often be viewed as an additional cost rather than an integral one. The thing homebuyers need to bear in mind is that opting for the right survey could actually save them time, money, and heartache. The cost can often be a fraction of the potential expense from work which needs to be completed on the property which was not identified before contracts are signed.
Valuing a Property
The surveyor's valuation helps buyers and sellers understand the true worth of a property.
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Assessment of property features: Surveyors consider the size, age, condition, and layout. They may physically measure these aspects and will also evaluate the age of the property, the quality of access and parking, and outdoor features like topography, location, and plot size.
Additionally, surveyors assess any potential for future development, which buyers may overlook.
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Local market analysis: They consider the local property market trends and comparable sales in the area.
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Identification of defects: Surveyors look for any defects or issues that might affect the property's value, including structural problems, dampness, or outdated systems.
House Valuation vs. Mortgage Valuation
Understanding the difference between a house valuation and a mortgage valuation helps both buyers and lenders in their financial decisions.
| House Valuation | Mortgage Valuation |
|---|---|
| Conducted by a surveyor | More focused and limited in scope |
| Aims to determine the property's market value | Assures the lender that the property is a suitable security for the loan amount |
| Based on various factors, including its condition, location, and current market trends | Less concerned with the finer details of the property's condition |
| Benefits the buyer | More concerned with its overall worth as collateral |
| Assesses potential risks and renovations | |
| Identifies any unique features that might affect its value |
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Related read: How to sell your home for market value after a survey
Final Thoughts & Key Takeaways
A detailed property survey is essential to uncover hidden issues, ensure safety, and guide informed decisions, helping you avoid future expenses and surprises.
Key Takeaways:
- Importance of surveys: Uncover hidden issues and save on potential costly repairs.
- Valuation knowledge: Distinguish between house and mortgage valuations for sound financial decisions.
- Surveyor's role: Assess property condition, structural health, and safety comprehensively.
- Informed decision-making: Use the surveyor's report to negotiate prices or plan necessary repairs.
A well-informed decision ensures both financial security and long-term satisfaction with your property investment.