Home Buyers Survey - Should I be worried?

Tony123

Hello,

I recently made an offer on a 2 bedroom mid terrace house of £180,000.

I had a home buyers survey commissioned and what came back was pretty concerning. However, I am a first time buyer, therefore I am not sure how concerned I really should be.

The real alarm bell for me was that the report indicated that the reinstatement price for the property would be £130,000. That seems very high, even if the survey has been extremely cautions, that still seems high.

Some of the '3' rankings were clearly just the surveyor being cautious - specifically relating to boilers and electricity supply, as my solicitor has received evidence that those things are safe.

However, there does seem to be an issue with damp - particularly a lack of damp proofing on the extension to the property.

This is a direct quote from the report:

"The internal faces of outside walls are of plastered masonry. The party walls at
ground floor level are dry lined. This is likely to indicate dampness behind,
particularly as significant dampness was noted to the front and rear of the
lounge/dining room. This requires further investigation by a specialist dampproofing
contractor. Installation of a damp-proof course is likely to be
recommended and to fully complete the work re-plastering of internal wall surfaces
would be needed, in line with the proper specification as set out by the dampproofing
contractor.
Internal partition walls are of plastered masonry at first floor level. No serious
cracking or distortion was noted. Slight distortion is present but there is no
indication of ongoing or serious movement.
The ground floor layout has been opened up by removal of load bearing partitions.
No evidence of any structural distress was seen but this would have been a
structural change and Building Regulation approval should have been"

There was also issues with failed seal units on the windows - not sure what this means, but it was on all windows bar one. They are also highlighted as not being useable as a means of escape during a fire.

There are also quite a few other minor defects that would need replacing over time.

Given the information, should I be adjusting my offer or indeed running for the hills?

hazyjo

The reinstatement price is for rebuilding it for insurance purposes if it fell to the ground. Are you confusing it with repair costs?

Tony123

The report says:

Note: You can find information about the assumptions I have made in calculating this reinstatement cost in the ‘Description of the RICS HomeBuyer Service’ provided. The reinstatement cost is the cost of rebuilding an average home of the type and style inspected to its existing standard using modern materials and techniques, and by acting in line with current Building Regulations and other legal requirements. This will help you decide on the amount of buildings insurance cover you will need for the property.

Does this match what you think it means? Sorry, i'm new to this. Thanks!

G_M

If there was a fire, the building might have to be demolished, and all rubble removed. An architect employed, and the entire building re-built. £130,000 is not unreasonable to cover those costs.

When buying insurance, either insure for £130,000, or buy a policy that has no limit, or a specific limit above £130,000 (eg many insurers will pay "up to £500,000").

Boiler & electriity - surveyors always highlight these as they are not qualified to inspect. Either accept the certificates the seller provides, or pay a gas/electic engineer to inspect.

the damp is the issue: Do NOT get a free [STRIKE]survey[/STRIKE] sales inspection done by a damp proof company. They just want your business!

Employ and pay an independant damp surveyor who has no interest in doing any remedial work.

When the seals fail on double glazing, damp air gets between the 2 panes of glass causing misting. You should have noticed this when viewing.

Some companies will extract the air/water vapour and re-seal, though I've heard mixed reports of this. the alternative is either to live with misty windows if not too bad, or replace the entire window.

RedFraggle

Tony123 wrote: »

Hello,

I recently made an offer on a 2 bedroom mid terrace house of £180,000.

I had a home buyers survey commissioned and what came back was pretty concerning. However, I am a first time buyer, therefore I am not sure how concerned I really should be.

The real alarm bell for me was that the report indicated that the reinstatement price for the property would be £130,000. That seems very high, even if the survey has been extremely cautions, that still seems high.

What HazyJo said

Some of the '3' rankings were clearly just the surveyor being cautious - specifically relating to boilers and electricity supply, as my solicitor has received evidence that those things are safe.

However, there does seem to be an issue with damp - particularly a lack of damp proofing on the extension to the property.

This is a direct quote from the report:

"The internal faces of outside walls are of plastered masonry. The party walls at
ground floor level are dry lined. This is likely to indicate dampness behind,
particularly as significant dampness was noted to the front and rear of the
lounge/dining room. This requires further investigation by a specialist dampproofing
contractor. Installation of a damp-proof course is likely to be
recommended and to fully complete the work re-plastering of internal wall surfaces
would be needed, in line with the proper specification as set out by the dampproofing
contractor.
Not uncommon on older houses, have a damp survey

Internal partition walls are of plastered masonry at first floor level. No serious
cracking or distortion was noted. Slight distortion is present but there is no
indication of ongoing or serious movement.
The ground floor layout has been opened up by removal of load bearing partitions.
No evidence of any structural distress was seen but this would have been a
structural change and Building Regulation approval should have been"
Ask for the building control completion certificates

There was also issues with failed seal units on the windows - not sure what this means, but it was on all windows bar one.
It means the seal between the 2 panes is no longer working so you will get misting in between.

They are also highlighted as not being useable as a means of escape during a fire.
It means there are only small openers on the upstairs window. You need to be able to get out from the first floor in the event of a fire. With this and the above I would consider replacing the windows if you go ahead and be prepared for that cost.

There are also quite a few other minor defects that would need replacing over time.

Given the information, should I be adjusting my offer or indeed running for the hills?

Possibly adjusting cost but no need to run for the hills yet.

Surrey_EA

Yes, as hazyjo says, the figure is the estimated cost of totally rebuilding the property, in the unlikely event that should prove necessary.

it is not unheard of for the reinstatement cost to be greater than the purchase cost.

Nothing in your first post seems too concerning. Surveyors always recommend that you get someone to check plumbing and electrics, it does not necessarily mean there's something wrong.

Crashy_Time

Surrey_EA wrote: »

Yes, as hazyjo says, the figure is the estimated cost of totally rebuilding the property, in the unlikely event that should prove necessary.

it is not unheard of for the reinstatement cost to be greater than the purchase cost.

Nothing in your first post seems too concerning. Surveyors always recommend that you get someone to check plumbing and electrics, it does not necessarily mean there's something wrong.

But in this case it is 50k less?

cjmillsnun

it is also not unheard of for reinstatement costs to be significantly lower than the purchase costs. House prices vary from area to area and the costs of building a house do as well.

Surrey_EA

Crashy_Time wrote: »

But in this case it is 50k less?

The land clearly has a value, irrespective of whether a property exists upon it.

davidmcn

Sheesh. The only relevance of the reinstatement cost is that it's the figure you stick into your buildings insurance application if they ask. Otherwise, just ignore it, and concentrate on what the surveyor has actually said about the condition of the property.

AnotherJoe

Crashy_Time wrote: »

But in this case it is 50k less?

The land has a value as well.
This is a non-issue.