What is the Difference Between a House Survey and Valuation?

If you’ve found the home of your dreams, you’re probably navigating tons of odd new terms like ‘conveyancing search’, ‘staircasing’, ‘house survey’, and ‘valuations’. It’s almost a whole new lexicon that you must get used to in a very short amount of time. Fundamentally, what is the difference between a house survey and valuation? Don’t they tell you the same thing? You might think so, but you’d be miles off. We’ll break down both products in full detail below for you.

What is a house survey?

Also known as a property survey, a house survey checks the condition of the home and land. It can warn you of any worrisome and hidden issues like subsidence or roof problems. While it’s not mandatory, it is strongly suggested; failing to uncover serious complications with your prospective home can have knock-on consequences for years to come. Home surveys cost £400-£1.5k on average, and most contain a valuation as well.

You should look to have a house survey done by a local surveyor, as they’ll know more about the common issues in the area and elements to watch out for. Look for a surveyor who is part of the Royal Institute of Chartered Surveyors (RICS) for more confidence in their abilities. If you’re buying a converted church or another unusual home, try to find a surveyor with expertise in that sort of structure. Lighthouses, warehouses, and castles all have bespoke issues that can occur, so you’ll want that experience guiding you.

What is a valuation?

A Valuation Report is an inspection and report of a property that will determine its value, commonly referred to as a Valuation Inspection and Report. It’s important to note, this is not a survey and won’t inform you of any structural damage to the property. A valuation report gives an indication of the value of the property and so it can be widely applied to all property types. The valuation report will look at the condition and location of your house to provide an estimated value. It’s carried out by a RICS registered property surveyor and is designed to help you set the price of your home for selling. It costs between £300-£700 and is around 2-3 pages in length.

This is not the same thing as a mortgage valuation. Your lender will require one of these to determine what they’re willing to lend you for that specific property when looking to buy. Also, if you’re selling, an estate agent may offer their Estate Agent Valuation to help you set the price of your home on the open market. This is advantageous because their local knowledge can enable you to get more in a sale than you would from a valuation-based price alone.

So, what’s the difference?

At the core, valuations don’t flag hidden issues – they’re only looking at if the construction is traditional, if there are any obvious signs of damage, and if the floor plan details are accurate. They’ll note its comparison to other local homes, too. To be clear, a property survey is optional. But they can help you avoid expensive and unwanted surprises, like an unexpected rewiring job, as well as giving you peace of mind by telling you that those hairline cracks don’t mean the house is falling down. Given the hundreds of thousands of pounds it costs to buy a property, a few hundred pounds on a survey to have the reassurance of an independent, expert surveyor looking over it feels like a good investment. With the information from the survey, you might reconsider whether to buy the property or use the unbiased information you have to renegotiate the price. If you find for example it needs £15,000 for roof repairs, it is reasonable to ask for £15,000 off the price. Alternatively, you might ask the seller to fix the problems before you buy.

Do I need a property survey on a new build?

There’s actually a special property survey for that; it’s called a snagging survey, and it’s great because, according to HOA, it will help you:

Highlight any issues in the property that fall short of the warranty standards
Highlight any breaches of building regulations or any other statutory technical guidance
Identify works which are outstanding
Identify where traditional custom and practice within the industry have not been met
Provide guidance prior to or post completion of the property as to any outstanding issues requiring remedial works

You can have it done before or after completion, but it’s always recommended to have a snagging survey completed within the first two years so the developer can remedy any issues. You don’t want to be on the hook for repairs they’ve caused years later.

Finding a surveyor and attending site

You’ll want to visit the property with your surveyor. Sometimes when you read a report, you don’t capture the nuance of issues. By being present on the day, you’ll gain first-hand knowledge of the surveyor’s concerns. You can flag any specific worries you have and ask questions when something gets highlighted. Always get your own surveyor by fielding quotes from comparison sites. Using a surveyor provided by your developer or lender may cost you more or they may be biased. For the best standards of surveying, look for an MRICS or FRICS after your surveyor’s name. Oh, and before you appoint anyone, make sure to see a sample report – you’ll want to be sure you understand the information they’re going to produce for you. If it’s full of caveats or tough to decipher, find another quote. Why? Well, you’re paying good money for this survey. You need to understand it well to prevent making a poor financial decision.

When finding a surveyor, it’s critical to shop around. That’s true for your conveyancer, too. When you get to that stage, why not try out our free tool? We’ll help you compare quotes from loads of local conveyancers quickly. Click here to submit your request today.