When buying a new property, whether it’s your first time or not, it’s important to make sure the price you’re paying is correct and that the property is really worth the value that the seller believes it is. In order to do this, a Property Valuation Report should be carried out. There are three different types of Property Valuation Reports, which are not all relevant to every buyer and every property.
Basic Valuations are carried out by a surveyor on behalf of the lender. The main aim of this Basic Valuation is to assure the lender that the property you are requesting the mortgage for is actually of the correct value. Depending on your lender, you may or may not have to pay for this survey to be carried out, the cost of which is usually determined by property size.
During the valuation, the surveyor will tour the property and note any major defects or damages that may have an adverse effect on the mortgage or the saleability of it in the future.
If the property is thought to be over-valued and the lender refuses to offer the valuation, you can either lower your offer to the seller in accordance with the lender’s new valuation or alternatively, you can provide evidence of other properties in the area which are of a similar price.
A Basic Valuation is usually sufficient enough for new properties in good condition.
Home Buyer’s Report
As the name would suggest, a Home Buyer’s Report is carried out by a surveyor on the request of the customer. This consists of a full condition report of the property and report any major damages or defects that may effect on either the value and/or the condition of the property in the future.
Home Buyer’s Reports are sufficient for any properties in a reasonable condition and are useful for finding issues such as damp or any potential structural issues, both inside and out of the house.
If any issues are discovered, your surveyor will be able to give you an idea of the estimated costs of repairs, and it is then reasonable to readjust your offer based on this.
Full Structural Survey
This last Valuation Report is suitable for all properties but is particularly applicable to listed properties or properties that need a considerable amount of renovations or repairs. It will consist of a full structural survey looking at all aspects of the property to make sure it is completely safe.
Again, like with a Home Buyer’s Report, the value of your offer should be renegotiated in accordance with with the estimated costs of any necessary repairs or renovations.