First time cash buyer - should I get a valuation as well as full building survey?

recall79

Hi,

I have inherited money which is enabling me to buy a terraced house outright without needing a mortgage. I've had the offer accepted and have instructed solicitors and an RICS surveyor to carry out a full building survey. I've gone with someone who has 30+ years experience. This is more costly than some of the other quotes I received but I feel it's worth getting a comprehensive survey.

The standard RICS building survey does not include a valuation. I asked the surveyor and he said he was happy to provide an opinion as to whether the agreed price appears reasonable taking into account any faults found but it will not be a formal RICS Red Book Valuation.

This seems to be something the mortgage company usually does. As I won't have a mortgage should I get a valuation separate from the building survey?

As we are first time buyers I want to make sure that we are paying close to market value and that if we end up selling in the future that we will get our money back.

I would really appreciate your advice.

Many thanks.

G_M

It really depends entirely how confidant you are that you've offered a fair market price.

Presumably before making your offer you compared the property, and price, with others in the area. nd looked at what other properties recently sold at.

This is pretty much what a Valuation will do.

But it's entirely up to you.

recall79

Hi, thanks for the quick reply. We did managed to agree a price £7000 below the asking price which was accepted straight away. The house is on a street where there is not much property movement so it is difficult to judge.

Ideally I would have liked the price to be lower but we are getting a lot for our money but not sure how realistic that expectation is. I guess I'm anxious as I feel like it's all new to me, and wondered whether there was a standard checklist of things to do when buying a property.

david1951

Are you happy with the price you are paying?

If you are having second thoughts, or didn't carry out any research (e.g., local sold prices of similar properties) an informal valuation may be a useful check.

If you're happy then I'd just get on with it. Why muddy the waters?

recall79

I don't have doubts about the property. We have been looking for 4 months and this was the only one we really liked and the layout suits us. I think I may be worrying unduly. Just not used to spending large amounts of money so it makes me a little nervous. As long as the surveyis comprehensive to spot faults I think I'll just go with that.

Crashy_Time

"Market Value" before and after the property bubble pops or rates rise will be two very different things. 7k off is a start, but you need to be careful and do your research properly, getting a discount so easily may be because the seller knows you are over-paying anyway? There will be many many "motivated sellers" about in future, especially when people turn against BTL.

recall79

Is it normal to get a valuation done by a different surveyor to the one doing the building survey?

G_M

No. I'd use the same one. That way he will value it ased on both

* the condition of the property and
* its size, location etc compared to other sales in the area

You asked about a 'check list'. Do you mean in relation to valuations, or house-buying? There are many house-buying checklists on the internet, and there are whole books written about how to buy a house which will include checklists.

recall79

I think you are correct. My surveyor offers the three common surveys, so i'm guessing i would ask him to do a home buyer survey as well as the full building survey.

Crashy_Time

Definitely get a valuation.