Whether you are buying or selling a home, you will hear the terms valuation and home or building survey used a lot. They are used so much, in fact, that some buyers start thinking that they are the same thing. They are not, but they are related. In this article, we will look at the differences between RICS valuations and building surveys so buyers can understand the differences.
What is a Property Valuation?
A property valuation determines an accurate value of a property, whether that is a flat or a house. It is done to ensure that the value of the home – what the home is worth – is the same as the amount you want to borrow to finance it or the cash you are willing to pay. While you need to handle the valuation yourself, it is often done for the benefit of the mortgage lender so they know the home is worth it.
Remember that the mortgage lender invests in the house on your behalf, and you then pay them over time. If you default on the loan for any reason, the mortgage lender wants to be sure they can recoup their investment, which can only happen if the house is worth what they lent you.
There are various types of property valuations, but the two most common ones are those done by property valuers and those carried out by the Royal Institution of Chartered Surveyors, Even though they are usually thorough, they do not tell you the complete condition of the house. For example, the valuation might not tell you about the property’s structural integrity or whether it needs any repairs.
You might hear a property survey called many names such as building survey, homebuyer survey, and others names. It is completed by property surveyors and is meant to provide accurate, in-depth, and detailed information about the state and condition of a property.
This survey is critical before going forward with any transactions as it will help you know the condition of the:
- Heating, and much more
As a buyer, the home buyers survey will not only identify any defects in their areas checked but will also outline repairs and their likely costs. You should call a house surveyor in Norwich to complete the survey as a buyer because you are the one who will potentially be left with a huge bill if you do not do your due diligence.
Getting a Home Valuation and Survey at the Same Time
A home survey is typically not done when doing a valuation, but homebuyers can request one as an add-on service. This might lead to the survey being more expensive and taking more time than expected, but you will complete two important steps simultaneously. Remember that property valuations are typically requested by buyers and sellers, while surveys are strongly recommended for all buyers.
A property valuation is different from a property survey, and you should know which one to get depending on whether you are selling or buying. Both can help the selling and buying process go much smoother as they eliminate any misunderstanding.