Did you know that on average only 20% of house buyers actually commission a survey, instead relying only upon the property valuation provided for the lender. This is an incredible fact considering that a house is probably the largest and most expensive item that the majority of people will buy in their lifetimes. You would seriously expect most people to commission a property survey to ensure that they are paying the right price for what they believe is the right property for them! But they don’t!
Experts reckon that ignorance plays a large part in this low take up of independent surveys and it can be simply explained, through ignorance many homebuyers believe that the mortgage lender's property valuation is sufficient and therefore do not request or pay for any other form of survey.
80% of buyers don’t check that their property is safe
But it is still an unbelievable fact that nearly 80% of buyers don’t check that their property is safe or what work needs doing by commissioning an independent property survey. Incredibly, many people also assume that no survey or house valuation is needed with a new build home. However, most new build buyers experience on average about 80 defects, and therefore a specialist ‘snagging’ survey is essential if moving into your new build home is to be all you dreamed of.
It is very true that, unless you pay cash, as a house buyer, you do in fact pay for a mortgage valuation report in order to get a mortgage offer. The mortgage valuation or property valuation does what it says on the tin, it merely confirms to the lender that the property is worth more than what they are lending you – what it does not do, nor is it responsible for, is pointing out anything other than major obvious repairs that may have an impact on the future value of the property. So, if you really want to know what you are paying for when buying your house, get your own independent HomeBuyer or Building Survey carried out.
The lender's survey is simply a mortgage valuation
The lender's report is simply a property valuation. It can be described as purely a property inspection made to determine the amount and terms of the mortgage that you will be offered. To obtain vitally important information with regard to the properties current state you'll need to get a professional opinion by commissioning HomeBuyer or Building Survey before you sign any contracts.
Buying your dream home
Before buying your dream home you need to be able make a reasoned and informed judgement on whether or not to proceed with the purchase, assess whether or not the property is a reasonable purchase at the agreed price and make clear what decisions and actions should be taken before contracts are exchanged.
So, whatever you do don't just rely on the mortgage valuation report! You could end up with problems literally crawling out of the woodwork! Get your own HomeBuyer or Building Survey for peace of mind at least.