Statistically, only one in five buyers arrange for a private survey to be carried out on their next home.

I have no idea where these figures come from, but I’ve read it time and time again and haven’t made it up.

Why do such a small proportion of buyers commission a private survey?

I’ve thought about this long and hard over the years and there can only be two possible reasons.

▪ They think that the inspection carried out by their Bank or Building Society is a survey. (See HATS!)

▪ It’s another cost that they don’t want to pay.

The inspection for a Bank or Building Society is a mortgage valuation only and not a survey (blah, blah, blah – you’ve heard it all before).

Here's an example - In March '06 a complaint came into the office about a 'survey' that I had earlier carried out for a Building Society. Of course, it was not a survey - it was a Valuation Inspection for Mortgage purposes.

The 'complaint' was that I'd noted a need for a full damp proof course to be fitted to the property, a full rewire, repointing and replacement of all windows but the accusation was levelled that I had failed to note that there was 'dry rot' in the floors.

The buyer thought that this was my fault and probably expected me to pay for the repairs.

As was pointed out to him, the Mortgage Valuation Inspection Report also said:

'Specialist Contractor to carry out a full timber inspection and provide estimate for repair of defective floors'.

Perhaps he should have taken more care to read the report that his Building Society sent him!

Back to the point!

My view is that a SURVEY is intended not only to establish condition of the building, but to advise the Client on what needs to be done to put it back into good order (deal with repairs), keep it in good order (warnings given in the Survey Report) and one final and very important point.

That point is that a Survey Report details all relevant matters of disrepair and the house is valued on the basis of what it is, where it is and the condition in which the surveyor finds it.

The valuation in the survey report takes into account all of these factors.

If I value at a figure less than the agreed purchase price it is because I have found that there are defects present that justify re-negotiation.

eg: Letter received 25 October 2007.

The Client was purchasing a mid terraced house in Cullercoats, the initial bid price being £179,500.

We carried out an RICS Homebuyers Survey and Valuation, the cost of which was £530 + VAT.

"Thank you very much for carrying out the above survey, which enabled us to negotiate a £4.5k discount on our new house".

Time and time again my Clients re-negotiate the price or negotiate with the owners for them to pay for the repairs to be carried out, which would be a cost to the Client buyer if they discovered the existence of the problems after they’d moved in.

Whichever way you look at it, the Client saves money.

The position is very clear and as follows.

Buyer commissions survey → survey carried out → report prepared detailing all defects and with valuation to reflect condition → buyer re-negotiates price.

In addition, the Client has advice on what maintenance and repair work will be required over the course of the next few years.

In the worst cases, there can be so much wrong, that would cost so much money to put right, that the Client walks away from the sale and finds a different house to buy.

Not only do those rare worst case situations save thousands and sometimes tens of thousands of pounds, but also the stress, heartache and financial consequences of the buyer not knowing what was going on before purchasing.

One day, I might strike lucky and come across the one thing that is particularly rare in my professional life – a house that is in perfect condition and which needs nothing doing to it!

THE FINAL AND MOST LIKELY REASON IS COST.

You have to pay your Solicitor for sorting out all of the legal work.

You generally have to pay your Bank or Building Society for the Valuation Report for Mortgage Purposes (remember it’s not a survey!). Check the valuation fee carefully – the Valuer doesn't’t get all of this as there is an administration fee involved. So, you are paying your Bank or Building Society to do the administration work on your mortgage.

If you are using an Independent Financial to sort your mortgage out don’t, for one moment, think that he’s doing it out of the goodness of his heart. A fee is paid from the mortgage lender to the Financial Advisor.

You pay an Estate Agent to sell your house.

Surveyors come at the end of this trail of horrendous expense.

By the time you’ve chosen your new house, you know what everyone else is charging you and have mentally added up the costs, including Stamp Duty. The last thing you want is yet another professional sending you a bill, but you really should sit down and think about it another way.

ESTATE AGENTS – according to popular folklore they are all rogues, thieves and vagabonds who should be corralled into the nearest open space and stoned, en masse. Not entirely true!

MORTGAGE LENDERS – one of the most profitable financial sectors to be in and also trying to increase their massive profits even more by ringing you at home trying to sell you Life Insurance, Building & Contents Insurance, Car Insurance, Pet Insurance, etc. (Try not to look at the mortgage quote which actually tells you how much interest they are actually going to be charging you on what you’ve borrowed – You won’t sleep well if those figures become lodged in your mind!)

SOLICITORS – they’re a lovable bunch, really.

Tragically, their life has become much more competitive and conveyancing fees have been pared down over the years. I have yet to find a poor Solicitor, but can confirm that this is because of all of the other professional work that they do is much more profitable than conveyancing, Have you seen how much they charge to settle an estate when someone dies?

FINANCIAL ADVISORS – take my word for it, they will never be able to register as a Charity! They are making decent money on every mortgage they arrange.

THE GOVERNMENT – they certainly get their slice of the action, with Stamp Duty.

SURVEYORS – at the bottom of the “food chain”.

For years, considered the poor relation of the professions, well below Solicitors, Doctors and Dentists.

FIND A GOOD PRIVATE SURVEYOR AND HE COULD BE WORTH HIS WEIGHT IN GOLD TO YOU.

(Ok – an exaggeration, but you get the idea).