Getting a Survey

Valuation
A valuation is paid for by the buyer and is essential to show your mortgage lender that the property does exist and that it is worth at least the amount you are asking to borrow. The report is fairly brief and often is not even shown to the buyer.

If the firm that values the property says it is worth less than the offer price, your lender could lower the mortgage offer and you will have to make up the difference from another source. Or your mortgage offer could be withdrawn completely and you may have to start house-hunting again, or approach a different lender.

Sometimes part of the loan will be retained until specified work is completed on the property - which could prove costly if the work is time-consuming. Consider a second opinion if you're still determined to buy.

Surveys
A survey is separate from a valuation and is optional. Currently only about 15%-20% of buyers choose to pay the extra £500-£800 for an in-depth survey. But it's worth finding out whether your dream home is actually a gaping money pit. There are two types of survey:

A homebuyer's/flatbuyer's report
This is halfway between a valuation and a full structural survey. You should expect a fairly thorough inspection of every room, including cellar and loft if accessible, as well as reports on the condition of external features like paintwork, roofs, downpipes, drains and guttering. This report is not adequate for very old or unusual houses.

A full structural survey
This is the big one, and should take several hours to carry out. It should demonstrate the surveyor has made a thorough inspection. It should include details like why a door might be sticking and what heats what, together with estimates of the age of essential items like central heating systems. You should get a full written report - beware of relying on oral comments.

Choosing a surveyor
If you decide to employ a surveyor, be sure to use a qualified one. The firm should be a member of a professional association like the Royal Institution of Chartered Surveyors (RICS). It is preferable to use surveyors in the area of the new property since they should be well informed about any special local conditions. Ask your solicitor, go by word of mouth or consult RICS for a list of surveyors by area.

If there is anything you don't understand in the report, ask for clarification. Your surveyor, although often operating on a 'worst case scenario' basis, should be able to put any highlighted problems into perspective, as well as estimating how much it would cost to put them right. You can use this as ammunition to offer a reduced price to the seller.

If the surveyor recommends specialist treatment, get estimates from a few firms. You may want to reduce your offer for the house if you decide to proceed.

Save money
Ask to have the valuation and the survey done at the same time by the same person. Mortgage lenders like to use a surveyor from their own surveyor's panel, so when your offer is accepted ask your mortgage lender for names of local approved surveyors and contact them for a price to do the two reports simultaneously. You should be able to get a lower quote for carrying out the two together rather than separately.

In the picture
Tell your surveyors about any renovations you hope to carry out before they do the survey - they will able to advise you on any potential problems.

For further information and advice, log on to: Royal Institution of Chartered Surveyors (RICS); The Association of Building Engineers (ABE)