There’s no underestimating just how stressful, complex, emotive and downright confusing the homebuying journey can be, even for those who have been through the process more than once.
Within this journey, a lack of awareness can often culminate in a sale falling through or not even getting off the ground at all.
This fact is evident in new research from Zoopla which suggests that not understanding the homebuying process and key terms associated with it is putting around 2.2 million potential owners off buying a home.
To put this into some context, 43% of UK adults who don’t own a home do not feel confident in their knowledge of the homebuying process. Of this group, 27% said this unfamiliarity has stopped them from buying a home. In addition, 20% of all UK adults cannot confidently describe a mortgage, with 9% saying they do not understand any of 25 key terms relating to homebuying.
These are worrying statistics and while I won’t go into the 25 key terms, I would like to focus on an area which is all too often ignored but which can alleviate many homebuying concerns including immediate or future risks, unforeseen costs, disruption and upset. It is the survey.
What surveys to buy and how much they cost
From research of our own, we know that fewer than one in 10 homebuyers instructed a home survey with their recent property purchase.
This worrying statistic of 9.7% includes those who took out a RICS Home Survey Level 2, RICS Home Survey Level 2 with Valuation and RICS Home Survey Level 3 and is applicable for purchases completed over the course of Q1 2024 in England, Wales and Northern Ireland.
In terms of a survey split, the CSS Home Survey Trends Index for Q1 2024 showed that 61% of buyers commissioned the RICS Home Survey Level 2, with a third (33%) taking out a RICS Home Survey Level 2 with Valuation and 6% opting for a RICS Home Survey Level 3.
For those homebuyers electing for a RICS Home Survey Level 2 or a RICS Home Survey Level 2 with Valuation, the average property price for both survey types was £283,000 with an average £403 fee and £439 respectively.
For those homebuyers selecting a RICS Home Survey Level 3, the average property price was £407,000 with an average £854 fee for this survey type.
For clarity, the RICS Home Survey Level 2 was previously known as the HomeBuyer Report and the RICS Home Survey Level 3 offers a more comprehensive structural overview which is ideal for old more complex buildings, listed properties, houses with obvious defects, and unconventional homes.
Working within the surveying sector, I wasn’t surprised by this data but many other people operating within the industry and beyond were. Their big question was: why so low?
Reasons to take out a survey
Unfortunately, largely due to a sustained lack of awareness, a survey is often viewed as an additional cost rather than an integral one. However, the thing homebuyers need to bear in mind is that opting for the right survey could actually save them time, money, and heartache.
There are very few excuses not to instruct a survey. After all, the ‘worst’ that can happen is that potential purchasers have gained additional confidence that they are buying a property which is in good condition.
The ‘best’ outcome being that they can use this carefully collated evidence to dodge a potentially huge financial bullet and anywhere in between will leave them more informed and better positioned to renegotiate on price if necessary.
Sadly almost 90% of homebuyers continue to find these excuses. I urge you not to be one of them.
Helen Stead, Head of Countrywide Home Surveys, Countrywide Surveying Services
