First-time-buyer.. Survey help please

Rahbux

Hello,

I'm a first time buyer and have just signed the papers for the mortgage (phew).. I want to get a homebuyers report carried out, for peace of mind more than anything.

My query: the lenders say they can upgrade my basic valuation to a homebuyers report at a discounted price of £192. I've found someone in the local area who charges £320..
The banks option is obviously appealing but I'm concerned that with them having access to a more detailed report on the house that it might affect the valuation? Is this possible?

I've no major concerns about the property but would like to limit chances of any stumbling blocks where possible.

Advice much appreciated- this is a massive learning curve!

Thanks,

Ruth

dc197

Having looked at the house in more detail than a cursory valuation survey, it is possible that your surveyor finds problems and so advises the lender that the house needs work and that a retention should be placed on your mortgage (i.e. withhold £X until you fix the issue).
Or they might value it lower than the accepted price.

If you get a survey done independently they should spot the same issues (if any). The lender will not be informed unless you tell them, so less chance of retention.
But if a valuation is not included as part of the independent survey you will have nothing with which to negotiate a lower price.

Rahbux

Hi,

I went ahead with the homebuyers report and it came back with several reds, mostly concerning a lack of current test certificates for the gas installation, the central heating and hot water (combi) and the consumer unit. It also stated that the consumer unit contains older type wire fuses.

I've no idea about these types of things. Is this a major concern and should I be paying for people to inspect them? If these items do require updating, would this normally be at the cost of the vendor? My estate agent is telling me that usually the buyer pays for any work/ checks.

Advice greatly appreciated.

R

SmlSave

You can ask for these things to be checked, you can offer a lower price, you can threaten to pull out.

But if the seller doesn't wish to pay for them and you still want the house then you'll have to pay.

Usually doesn't mean should or will

dc197

Don't worry too much about a lack of certificates. I don't have those certificates for the house I am selling.
General wisdom here is don't allow the seller to repair or replace the consumer unit. They may do a cheap job and you would have little comeback. Instead ask for a discount. But on a relatively small cost it's barely worth the hassle.

JustinWayne

It is important to note that a mortgage valuation is not obliged to reveal to first time buyers any structural issues with the property.

AnotherJoe

Rahbux wrote: »

Hi,

I went ahead with the homebuyers report and it came back with several reds, mostly concerning a lack of current test certificates for the gas installation, the central heating and hot water (combi) and the consumer unit. It also stated that the consumer unit contains older type wire fuses.


R

It's ridiculous if those are reds because no one gets those certificates for their house unless they are letting it out, when it's s legal requirement. You can replace the wire fuses with mini rcds yourself, though I'd probably pay to have the whole unit replaced.
If anyone attempted to bargain the price of my house down on the grounds I didn't have gas or electric certificates I'd tell them to pay for them themselves if they were concerned. And you are talking a couple hundred quid on a house selling for at least tens and maybe hundreds of thousands.
Wire fuses does indicate very old wiring so possibly a retire may be on the cards, most likely out of preference than need. That is non trivially expensive and disruptive. Other similar houses in the street and area of that age are likely to be the same.

NicNicP

We got reds where the surveyor either wasn't qualified (gas,electrics) or where he wasn't able to check (floorboards). We're not worried by them. It's more to cover their backs in case they present a problem in the future.

justme111

So what is the difference between what you see when you view the house and what surveyor sees if he does not have any more qualification in building than a lay person ? I am just trying to understand what value survey saying "may be this or that" has - we all know what "may" be wrong , the issue is whether it is or not.

dc197

justme111 wrote: »

So what is the difference between what you see when you view the house and what surveyor sees if he does not have any more qualification in building than a lay person ? I am just trying to understand what value survey saying "may be this or that" has - we all know what "may" be wrong , the issue is whether it is or not.

The surveyor will spend several hours looking (hopefully) everywhere. Your viewing was quite possibly a rushed 15-minute dash while the next couple were tapping their watches.
They will spot things that you will spot when you move in, but the value is that they spot them before you sign. Also, they (hopefully) have better-trained eyes then many laypeople, so they can both spot things you'd miss for ages, and diagnose as serious/benign things you dismissed.