A property valuation is not the same as a property survey. Many home buyers are not aware of the difference between a valuation and a survey because it is not made clear to them, and as a result, assume they are the same.
It is important to understand the differences between a property valuation and a property survey so that you know exactly what you are getting with each.
Because of this lack of knowledge and clarity, many rely on a property valuation when buying a property because they believe it is enough and do not get a survey which reveals much more about their property and uncovers vital information that they need to know when making such a large investment.
So that you do not make this same mistake, this post outlines the differences between a property valuation and a property survey so that you are fully in the know about what each involves to ensure you do not rely solely on a valuation, but have a property survey too.
Property Valuation
A property valuation determines the value of the property and ensures that the property you want to purchase is worth the same amount that you want to borrow to pay for it. It is paid for by you but carried out for the benefit of the mortgage lender so that they can be sure that their investment is worth it, safe, and secure before they approve your mortgage.
However, a property valuation does not reveal the true condition of the property. It does not uncover any issues with the property or tell you anything about the building’s condition. It does not highlight costly defects or potential faults with the building or assess its structural integrity. It does not offer an accurate analysis of the property or provide any further advice on how to rectify faults.
For this reason, a property valuation alone is limited because it is not detailed or sufficient enough to tell you everything you need to know about a property. Only a survey will provide you with a full, comprehensive, and accurate image of the property.
Property Survey
A property survey provides a detailed, in-depth, and comprehensive report of the property and assesses the condition of the building to determine how suitable it is to live in and ensure everything is in good running order.
Depending on which survey you get – the Homebuyer Survey, Building Survey, or Specific Defect Survey, your survey will thoroughly inspect ceilings, walls, joinery, damp, floors, woodwork, roofing, guttering, windows, heating, drainage, gas, plumbing, electricity, subsidence, rot, and asbestos to determine its overall condition.
Your survey will evaluate the condition of your home, identify defects and structural faults, uncover hidden problems, highlight areas that need urgent attention, determine the extent of repair work and the cost of repairs, offer advice on how to rectify issues, determine the value of the property, decipher how defects will affect its value, highlight potential issues likely to crop up in the future, detail how the property is constructed and materials used, suggest what could happen if repairs aren’t carried out, and suggest what further investigation may be required.
A property survey is carried out for you and takes longer to complete than a valuation. It is important that you don’t try to cut costs and skip the survey as this could affect you in the long run, with unexpected surprises down the line. A property survey is essential to ensure you know exactly what you are buying and how much it will cost you in the long run so that you can make an informed decision on whether to proceed with the sale and negotiate a lower offer based on what the survey reveals.
Property Valuation vs Property Survey
As is made clear above, a property valuation and property survey are different in many ways. Whilst a property valuation determines the value of a property for the benefit of your mortgage provider to ensure their investment is worth it before they approve your mortgage, a survey is a detailed and thorough assessment of the condition of your property which highlights defects, cost of repairs, and offers advice, amongst many other elements, to ensure you know exactly what you are investing into and can determine whether to proceed with the purchase of the property.
A valuation is not the same as a survey, and hence it is important to get a property survey as well as a property valuation. A valuation is very limited in its offering so you cannot rely solely on the information provided in a valuation when purchasing a property. A survey reveals so much more essential information about the property that is indispensable to have when making one of the largest and most significant investments of your life.
