by Gauk
Tue, Oct 13, 2020 9:33 PM

Dear Jon,

Can you give me some advice on the best way to save costs with surveys, as surveying a property that sells prior to auction, or when you are outbid, will be money straight down the drain. What is the best way to approach surveys as regards to losing money?

Keep up the good work, Andrew Furnival

This is always a problem. Lenders need surveys before they’ll commit and you’re never sure that you’ll be the lucky purchaser on the day.

You have to gamble, here: either by having the survey performed and the loan finance in place prior to auction and risk losing the cost if you’re not successful; or wait until the auction happens, being fairly confident of the condition of the property in advance, and pay the deposit out of available funds and then have the survey and mortgage application performed within 28 days - but that is a gamble.

It’s a real dilemma and there’s no easy solution. However, even if, say, you are unsuccessful two or three times prior to purchase at auction, the discount to market value you should expect will more than make up for any losses incurred during failed attempts. If you don’t need a mortgage, or you can get a mortgage secured on a different property that you already own, it’s worth remembering that most often houses really don’t need surveying. If you have a basic understanding of building problems and issues, you can more often than not do it yourself. It’s only lenders that insist on surveys to cover their backs. They’re not obligatory.

I would recommend using the services of a property professional (like an experienced local builder) who’ll walk round a property with you and can point out all the faults, if any, and suggest costs of remedy. Of course you’ll have to pay him/her for their time, but this kind of service and practical advice can work out half or less as expensive as a surveyor ’s survey and, actually, be twice as useful.

published by Gauk

 

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