What is the difference between a valuation and a survey?

Many buyers think that a valuation and a survey are the same – they are not !

In fact, many people buying with a mortgage often confuse the mortgage valuation with a survey, but they are actually very different.

 

Valuations

A valuation is carried out for the lender to see how much a property is worth. It is just a quick inspection which is usually completed in 30-60 minutes.

As the valuation is not done for the benefit of the buyer, it won’t point out structural problems, significant issues or defects.

In fact, these days many mortgage lenders won’t even send a surveyor to visit the property and value it. Instead, they'll carry out a remote ‘desktop’ valuation using databases of property values and algorithms.

 

Surveys

A survey is like a health-check on a property. It is carried out by a qualified surveyor and will provide an independent account of the property’s condition highlighting any potential problems that the buyer may not notice or have considered.

There are three main types of survey:

Level 1 (Condition Report), a Level 2 Survey (historically known as a HomeBuyer Report) and a Level 3 (Building Survey).

 

Level 1 Home Survey (Condition Report)

A Condition Report is the most concise survey. It highlights any significant problems and summarises any risks. This is more suited to newer properties as it's not an “in-depth” report.

 

Level 2 Home Survey (HomeBuyer Report)

This is the next level in terms of detail. It covers what's visible to the surveyor and highlights issues that might impact the property’s value, safety and potential future saleability. It's suitable for most standard property types. It can come with or without a valuation if the buyer is using a mortgage to purchase the property.

 

Level 3 Home Survey (Building Survey)

This is the most detailed survey report. It highlights any problems with the property, even minor ones. It also sets out options to address these problems. The surveyor will conduct a thorough inspection, including looking in the loft and under floorboards. It's most suitable for older (pre-1850), significantly altered properties, those of unusual design, or those that require significant repair.

It is estimated that 80%-90% of buyers do not invest in a survey when purchasing their next home leading to many people finding problems and having to spend time and money putting things right.

Advising our clients to strongly consider a survey on their next purchase is part of the professional service and care that our clients deserve.

 

It is actually great advice and may well save them thousands in the long run!

 

Contact Referrals@valunation.com   - Tel 01206 363658 and talk to our team about which Survey is more suitable.