You should be well-informed about a property before you buy it.
If unknown issues appear after the sale, it could cost you.
A homebuyer report exists to prevent this.
Read on to find out what this is and how it works.
What is a homebuyer report?
A homebuyer report (also known as a RICS Level 2 survey) is a type of survey completed on a property.
A qualified surveyor will visit a house and assess its condition. You then get an in-depth report of their findings, including:
- History of the property
- Advice on ongoing maintenance requirements
- Inspection of gas, water and electricity assets
- Condition of boundary walls and fences
- A list of things that need attention
- Legal considerations
- Defects that affect the property’s value.
Homebuyer reports are one of – if not the -most popular types of house surveys buyers choose.
They are not the most in-depth type of survey, though.
How long do homebuyer reports take?
The inspection for a homebuyer report usually only takes a few hours. From that point, there’s around a week until you get the results.
However, you should also consider the time to book the report, which varies slightly depending on the time of year and market conditions.
What don’t homebuyer reports include?
There are several essential details that your homebuyer report doesn’t look at.
If you want these elements in the survey, you’ll need to get a Level 3 RICS survey, which costs more.
Non-visible issues
Your report will not feature anything that’s not immediately visible.
If the surveyor spots something that might be a problem, they’ll recommend that it be inspected further. But they probably won’t do this themselves.
Energy Performance Certificate (EPC) ratings
EPC ratings aren’t always made in this survey. If an existing certificate is available, it’ll be referenced.
But if one isn’t, the surveyor is unlikely to measure the rating themselves.
Environmental dangers
The report doesn’t focus on environmental dangers.
Asbestos is a common example. Unless it’s visible to the naked eye, in which case an inspection will be recommended.
It also doesn’t look at communal spaces.
When is a homebuyer report useful?
Negotiations
A homebuyer report is an essential supporting document when negotiating the price you’ll buy it for.
In many cases, the buyer will drop their price after receiving a homebuyer report.
Insurance policies
You will sometimes need a homebuyer report to take out an insurance policy.
Some insurance providers make it a requirement that you get one completed.
Mortgages
The same applies to mortgage lenders – plenty want to see a survey before they lend you money.
How to get a homebuyer report
You should find a surveyor who’s a Royal Institute of Chartered Surveyors (RICS) member.
This person is qualified to give you a high-quality survey that you can trust.
It’s worth getting a price quotation from several independent surveyors. Each one prices in their own way.
You might find one less costly than another, but you should prioritise positive reviews over costs.
You’ll then arrange a date for the homebuyer report to be completed. After the surveyor’s visit, expect to wait up to a week before getting the results.
You then need to submit payment to the surveyor. Keep a copy of the report, as several parties may want to see it.
Do I need to pay for a homebuyer report?
Yes. Buyers should expect to pay at least £400 and anywhere up to £1,000 for the largest properties.
In most cases, the price will be roughly £600. Gather several quotes so you can find the most cost-effective one.
Alternatives to homebuyer reports
1. Level 3 RICS
A Level 3 RICS survey is more expensive than a homebuyer report, but it also goes more in-depth.
It includes a thorough inspection of the property. Your surveyor will ‘get their hands dirty’ and look at every crevice to ensure nothing is missed.
2. Building Survey
A Building Survey is slightly different to a homebuyer report.
It focuses on the building itself, such as its structure, materials, foundations and age.
Signs of damage to the structure will be detailed. And you’ll get a summary of the energy efficiency, too.
3. Condition report (RICS Level 1 survey)
A third option is to pay for a condition report (also known as a RICS Level 1 survey).
It’s far less detailed than a homebuyer report. And it isn’t accepted by many lenders or insurance companies as proof of the property’s condition.
