Tuesday, 23 August 2011

So how much does a Home Condition Survey cost?

When speaking to a potential client the first question often asked is How much?
To answer this requires more than a little patience from the potential client.
Clearly in their eyes the survey is deemed to be a COST and not an INVESTMENT. It is only through having the time to discuss this fully that they understand some of the fundamentals not only in the REAL VALUE of a survey but also what a powerful tool a Home Condition Survey can be.
So before we consider the price of a survey lets look at some numbers;
The average house price is £163,981 (Based on Halifax July 2011)
25% of people that did not get a survey had to spend over £2500 to put serious defects right.
For 10% of the people they had to pay over £10,000
By contrast those people that did commission a survey were able to negotiate a reduction in the asking price that averaged £2000. (These numbers are based on the Which 2008 survey)

Even if we eliminate the "unlucky" 10% a surveys true value is close to £2000. Based on the average price above,the report is true value is 1.22% of the price. This equates to having their estate agency fees paid.

Even with these numbers some potential clients baulk at paying a fee for a survey and rely on the Mortgage Valuation. The Mortgage Valuation is not an independent survey that a buyer can rely on. Why? Well the easiest answer is to say that for a mortgage valuation the valuer will be on site for circa 20mins, compared to 3-4 hours for a Home Condition Surveyer.
A valuer will answer questions for the Mortgage lender whereas the Surveyor will be studying the property for defects to make the buyer aware.
The valuer gives the Mortgage lender a value on the property should the buyer default on payment, the surveyor gives the home buyer peace of mind.
All Home Condition Surveys are fully covered by £1,000,000 Professional Indemnity Insurance.

So now we understand more about the true value of a Home Condition Survey how much does it cost? As with most things there are variables in terms of age, size, location & detachment etc. As an indication a post war semi detached property would cost only £300 + VAT. That is less than 0.25% of the average price.

This blog is written by Chris Dickens of Dickens Surveyors.

1 comment:

  1. The deck, trucks and wheels of then current electric skateboard for sale were oversized, heavy and low quality, severely affecting the quality of the ride. After more research he uncovered an obvious neglect in the marketplace for one basic fundamental – an efficient motorized skateboard that was built using real skateboard parts.