Over a fifth of home buyers who did not take out a home survey are saddled with a property they would never have bought if they had been aware of its true condition before purchase, according to new research by RICS.
A survey of home buying consumers shows that many homeowners who did not take out a home survey are left with a property they regret buying and an average of £5,750 in repair bills.
The survey of 1,017 buyers across the UK found that consumers are clearly aware of the need for independent advice, with 94 per cent of respondents agreeing it is important to commission a survey. However, nearly a third failed to do so. This means buyers are left ignorant of issues with the property, such as structural defects, dry and wet rot, subsidence and many other faults, only for these to become serious matters at a later date. The new homeowner may then be unable to afford, or have the desire, to fix the faults and may be left with a property they may no longer want to live in but are unable to sell to recoup their losses.
RICS’ survey shows it is the young and first time buyers who are at particular risk, with a lack of understanding of the home buying process. Other results from the survey showed:
- · 88 per cent of those who had bought a previous property thought they had a good understanding of the process, compared to 66 per cent of first time buyers.
- · 79 per cent of those who previously bought a property believe they understand the difference between an ‘appraisal’, ‘valuation’ and ‘survey’ compared to 67 per cent of first time buyers.
- · 89 per cent of respondents who did not commission a survey now think it is important to take out independent advice.
- · 73 per cent of people who did commission a survey said it provided them with peace of mind and over 50 per cent felt it was value for money.
Peter Bolton King, Global Residential Director at RICS, said: “Buying a home is one of the biggest decisions most people will ever make and yet many consumers are doing so blind to the facts. Serious faults are difficult to identify and costly to repair. By not being aware of them consumers are risking a potential home buying time bomb. This can cause extreme stress and financial strain on homeowners who are often stuck with a property they no longer want but cannot sell.
“A home survey is a small price to pay to avoid this time bomb. A survey ensures buyers are informed about the condition of the property and armed with the necessary information to negotiate the fairest deal.”
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