The Difference Between A Condition Report and A Building Survey?

You might have seen our previous blog post recently about the difference between a Homebuyer Report and a Mortgage Valuation and we’re here to carry on giving you the information to help you feel comfortable when buying a property! This time we’re covering the differences between a Condition Report and a Building Survey.

Surveys, reports, and more surveys

The whole process of buying a house can be a bit bamboozling – especially if it’s your first time, or it’s been a while since you’ve moved. As with everything to do with buying, selling and renting a property though, we’re here to help and advise every step of the way.

One of the steps involved in buying a property is the survey phase, which can be confusing in itself due to the different types of survey available. 

Although surveys are optional (as opposed to a mortgage valuation), they are incredibly important as they can highlight any issues with the property that might either cost you money down the line, or even impact your decision to buy. While it can seem an added cost as part of the buying fees, the price of a survey is a small percentage of the overall investment you’re preparing to make. Plus, if any major issues are uncovered, you may be able to negotiate a lower purchase price to mitigate any costs of repair. Think of it as your peace of mind that you’re fully aware of what you’re getting for your money.

For many buyers, a survey is now an accepted necessary cost. A report by Which? found that 76% of homeowners got a survey before buying their current home in 2019. 

But which report should you get? There are three levels of optional surveys that you can pay for. It is important to note that these are different from the non-optional mortgage valuation, which is a basic survey carried out by your lender as part of the mortgage offer process.

• Level One – Condition Report 
• Level Two – Homebuyers Report 
• Level Three – Building Survey 

This guide from the Royal Institution of Chartered Surveyors is really useful for a quick glance at what is covered by each survey.

We’ve discussed Homebuyers Reports and Mortgage Valuations extensively in a previous blog, so in this article we’re going to focus on the other two surveys. Please read on for more information about the differences between a Condition Report and a Building Survey.

In a hurry? Here’s a quick summary

• A Condition Report is the most basic survey, providing a surface level assessment of the condition of a property
• A Building Survey is the most comprehensive survey, providing an in-depth assessment of both the condition and structure of a building

What exactly is a Condition Report?

A Condition Report is the most basic level of home survey you can buy. It will soon become more widely referred to as a Home Survey Level 1 Report, following the implementation of a new Home Survey Standard from the Royal Institution of Chartered Surveyors (RICS) earlier this year. It will officially go by the new name from September 1, 2021.

When should I take out a Condition Report?

It’s strongly recommended to take out some form of home survey before purchasing a property. As it’s the shortest and most basic level of survey, you might choose a Condition Report if you’re buying a conventional house, flat or bungalow that’s made from traditional building materials and in a reasonable condition.

Remember, a Mortgage Valuation is purely to satisfy a lender that they are prepared to take the risk on your mortgage. Often this is just about making sure the market value is correct – they might not even step foot inside the property to make this assessment, so it really is worth investing in at least this most basic level of survey.

What is the purpose of a Condition Report?

As suggested by the name, a Condition Report will focus purely on the condition of a property. It will cover any faults that need urgent attention or might be serious, issues which need deeper exploration to prevent serious damage to the fabric of the building and any other possible defects that may be hazardous to safety. Level 2 and 3 surveys will look in more detail at additional factors such as the value of a property, ongoing repairs and maintenance costs and energy efficiency.

Who conducts the Condition Report? 

A Condition Report is carried out by RICS approved surveyors. As RICS members, our Chartered Surveyor team at Readings have extensive knowledge and experience covering Leicester or it’s surrounding areas and can conduct or advise on all levels of home surveys.

What does a Condition Report include?

A Condition Report will cover any obvious surface level defects, as well as advising on potential legal issues that need to be addressed. The report will provide traffic light red, amber and green ratings of the condition of various parts of the building plus any services, garages, boundary walls, fences and outbuildings. 

• Green/Level One is no repair needed
• Amber/Level Two means there are defects that need repairing or replacing but are not considered urgent or dangerous 
• Red/Level Three means defects have been identified that are serious and/or need urgent repair or replacement.

The inspector may use equipment such as a damp-meter, binoculars and a torch to assist visual inspections, but won’t take up carpets, move furniture or empty cupboards or loft spaces. Inspection of any services will be limited to visual inspections of visible services such as electrics and plumbing, but will not determine their efficiency or safety. Other surveys will be required for this level of detail. Condition Reports do not include any specialist tests or make enquiries with other bodies, although they may recommend that further investigation is carried out on a particular issue.

What type of property is a Condition Report for?

As this is the most basic level of survey, it is only recommended for conventional, straight-forward properties which are in a reasonable condition. It is mainly aimed at newer houses, flats and bungalows that are less than five years old and don’t have any quirks or oddities. If you’re dealing with anything else, such as an older building, or a non-conventional property, it’s recommended to opt for one of the more detailed surveys.

Who pays for a Condition Report and how much will it cost?

The buyer pays for a Condition Report and these vary in price depending on the size, type and value of property. They could cost anything between £400 and £950.

How long does a Condition Report take?

Carrying out the inspection itself doesn’t take very long – although again this also of course depends on the size of the property, but it’s unlikely to be more than an hour. It’s worth asking about time frames for carrying out an inspection and preparing the report when you’re appointing a surveyor, as this can also vary depending on their workload.

What happens after a Condition Report?

Once you have received a report, it’s then down to you to decide what, if any, action to take. Assuming the Mortgage Valuation concluded that the lender was happy to offer a loan on the basis of what they have seen, any items raised in a Condition Report are for your consideration.

If there are any red rated defects spotted, you might want to use this information to carry out further investigative work – which may involve commissioning a more detailed survey or calling in a particular specialist. Depending on the problem, you might be able to negotiate a new purchase price that deducts the cost of any repairs. In extreme cases, you may decide that you no longer want to proceed with a sale.

Where can I find a RICS Chartered Surveyor?

The main thing is to make sure any surveyor you use belongs to a recognised governing body such as the Residential Property Surveyors Association (RPSA) or Royal Institution of Chartered Surveyors (RICS). As RICS members, the Chartered Surveyors team at Readings have extensive knowledge and are more than qualified to carry out the survey for you.

To summarise

A Condition Report is the most basic property survey you can buy in order to get a surface level condition check of a property you’re looking to buy. You might use this sort of survey for a newer conventional property that you’re confident is in a reasonable condition, but you would like some added reassurance. If you want more peace of mind than this, then you can’t get much better than a Building Survey. We’ll look at these in depth in the rest of the article.

What exactly is a Building Survey?

A Building Survey is the most detailed property survey you can buy – apart from an actual structural survey by Chartered Civil or Structural Engineers. This sort of survey provides a real in-depth analysis of any premises you’re thinking of buying. Like other forms of survey, it uses a green, amber, red traffic light system to rate the different elements they have inspected.

When should I take out a Building Survey?

In many cases a Level One Condition Report or Level Two Homebuyers Report will do the job, however there are cases when a more in-depth Building Survey is advisable. Particularly when a property is older (more than 50 years), if it has obvious defects, or if you intend to carry out renovations and want to get an idea of the existing structure to see if your plans would be viable. As with all surveys, you should commission this after your offer has been accepted and before any contracts are signed.

What is the purpose of a Building Survey?

A Building Survey is designed to provide an intensive inspection of both the structure and condition of a property, which will provide you with a full report, not only of any defects, but also the estimated cost of any repairs and an idea of the general ongoing maintenance required. This will help you make an informed decision about whether to purchase a property. A Building Survey doesn’t include the property valuation as with other surveys, but you can request this as an addition.

Who conducts the Building Survey? 

Building Surveys are carried out by qualified surveyors who are members of approved bodies such as the RICS. Our Chartered Surveyors are RICS members and can carry out or advise on all levels of home surveys.

What does a Building Survey include?

The surveyor will carry out a thorough inspection of the property, inside and out, including all visible and accessible areas such as roof spaces, garages, boundary walls and more. Where they can they will also look deeper by lifting carpets and floorboards, moving furniture, clearing cupboards etc, as long as they have permission from the owner/occupier. They’ll also look for signs of dampness, check for any structural work that has been carried out without permission, comment on building materials, check for potentially damaging tree roots and make enquiries about contamination or other environmental dangers. Crucially a Building Survey report includes an estimated cost and timeline of repairs.

What type of property is a Building Survey for?

A Building Survey is suitable for all types of properties, including those that are a bit more unique, such as old buildings, listed properties, homes which are unconventional in style, or where there are obvious problems that need fully assessing.

Who pays for a Building Survey and how much will it cost?

A Building Survey varies in price between around £600 and £1500, depending on the size and value of the property. It is paid for by the prospective buyer. However, while it is the more costly option, it could save you tens of thousands of pounds by laying bare all the hidden defects of a house before you buy it, which is especially valuable if you’re looking at a renovation project. It could show you that something isn’t actually worth the price being asked for, or is perhaps not even worth buying at all.

How long does a Building Survey take?

Because it’s more in-depth, the inspection itself can take much longer – several hours and maybe up to a day depending on how big and/or rundown a property is. It’s worth getting it booked as soon as your offer has been accepted in case your preferred surveyor has a busy diary. You might also want to liaise with the current owner/occupier in advance of the inspection to make sure any areas you particularly want the surveyor to look at are accessible. The report should come back within one to two weeks, depending on how complex a case is.

What happens after a Building Survey?

The surveyor will provide you with an in-depth report, which will outline any defects, when repairs might be needed and importantly, how much they will cost. This should arm you with all the information you need to help decide whether to proceed with a purchase or not, or whether to negotiate a lower price as a result of something you’ve read. This is something you can discuss with your solicitor and estate agents once you’ve digested the report and its information.

Where can I find a RICS Chartered Surveyor?

All decent Chartered Surveyors will be listed with the Royal Institution of Chartered Surveyors (RICS) or a similar approved body. The RICS website enables you to search for qualified Chartered Surveyors in your area. The Chartered Surveyors team at Readings are also more than qualified to carry out the survey for you.

To summarise

A Building Survey is the most comprehensive survey you can buy to help you decide whether to proceed with a house purchase. It’s the one to opt for if you’re buying an older or unconventional property, particularly if you’re planning a renovation project. This level of survey will give you a much better picture of the true condition and structure of the building and the scale and cost of repairs needed.

What is the difference between a Condition Report and a Building Survey?

The main difference between the two reports is the level of detail they go into. A Condition Report is the most basic and is really a surface level visual assessment of the condition of a property. You’d choose this when buying a conventional new property that you would like an expert to check just in case.

A Building Survey is much more in-depth and will give you a full assessment of both the structure and condition of a property, as well as information about the type and cost of repairs needed.

To conclude

Buying a house and deciding what survey to choose can be difficult, but the main thing to note is that some form of survey is vital, particularly with such a big investment at stake. Getting an expert to check that a property is not hiding any costly or even dangerous defects is well worth the expense. Hopefully our articles about surveys will have given you some useful information as a starting point, but if you have any questions at all, or need advice about a specific project, our team of accredited surveyors will be happy to help.