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.
Saving Costs on Property Surveys: Expert Advice
Property surveys play a crucial role in assessing the condition and value of a property before purchase or renovation. While they are essential, it’s natural to want to save costs without compromising the quality and accuracy of the survey. Here are some expert tips on the best ways to save costs with property surveys:
- Determine the Type of Survey Needed: Understand the different types of property surveys available, such as a basic valuation survey, a homebuyer’s report, or a comprehensive building survey. Assess the specific requirements of your property purchase or project to choose the most appropriate and cost-effective survey type.
- Compare Surveyor Quotes: Obtain multiple quotes from different reputable surveyors and compare their prices. Ensure that the quotes are comprehensive and include all necessary services. However, remember that the cheapest option may not always provide the best quality, so balance cost with expertise and reputation.
- Opt for a Condition Report: If you’re purchasing a relatively new property or one in good condition, consider opting for a basic condition report instead of a more extensive survey. This can be a cost-effective option to gain a general understanding of the property’s condition without incurring unnecessary expenses.
- Group Surveys with Neighbors: If you’re part of a property development project or purchasing a property in a multi-unit building, check if other buyers or owners are interested in getting surveys done as well. Grouping surveys together with neighbors can potentially lead to volume discounts from surveyors, saving costs for everyone involved.
- Focus on Essential Areas: Discuss with the surveyor to identify the most crucial areas to be surveyed based on the property’s condition and your specific concerns. This can help tailor the survey to focus on critical areas while skipping unnecessary or less relevant sections, ultimately reducing costs.
- Prioritize Professional Qualifications: While seeking cost savings, it’s essential to prioritize the qualifications and expertise of the surveyor. Ensure they are members of a recognized professional body such as the Royal Institution of Chartered Surveyors (RICS). Qualified surveyors provide reliable and accurate reports, avoiding costly mistakes or oversights in the long run.
- Consider Remote or Desktop Surveys: In some cases, remote or desktop surveys may be suitable alternatives, particularly for properties that are easily accessible through virtual tours or comprehensive documentation. These surveys can be more cost-effective than physical on-site inspections while still providing valuable insights.
- Request a Surveyor’s Summary Report: Instead of a detailed report, consider requesting a surveyor’s summary report. This condensed version highlights the key findings, potential issues, and recommendations, providing a cost-effective option while still providing essential information for decision-making.
Remember, while cost savings are important, it’s crucial not to compromise on the quality and accuracy of the survey. Property surveys can help identify potential issues, negotiate prices, and make informed decisions. By using these tips and striking a balance between cost and quality, you can save costs while ensuring you have the necessary information to proceed with your property investment or project.