There's no doubt that house prices have outpaced wages over many years, requiring house buyers to borrow more and more money. And of course, with the need to borrow more and more money, buyers are put under an ever more intense spotlight in regards to their ability to pay back the loan. Naturally, the lender is interested in the value of the asset that the money is being used to pay for. After all, if the buyer bails out on the mortgage, then the lender will take ownership of the property. Therefore, it's important that the lender gets a true valuation of the property that is being purchased, via conveyancing solicitors
. Nobody can accept the asking price as being a true valuation of the property - only an independent survey can do that. It's reasonable for the seller to ask for more than the survey vaulation, but if the asking price is susbstantially more than the surveyed value, it may be a dealbreaker for the lender. As buyers may not know what to look for in evaluating a property, it can often lead to disappointment if the surveyor deems the property to be of a lot lower value than advertised. OR, they might consider that they dodged a bullet. In any case, the lender really needs to know that the asset is worth close to the asking price. So what do conveyancers look for? Here is just a small sample of what a surveyor will look for:-
- For the walls of these areas, see if there are any bulges, cracks, peeling wallpaper or paint.
- Check to see if the floor is level. Tap to see if it sounds solid or hollow if it is wood. Solid sound is good while a hollow sound could mean termites
- If the floor is carpeted check for lose parts or stains.
- Test all the light switches and electrical outlets.
That is by no means an exhaustive list, merely a sample of the things they look for - they will look for a lot more throughout the house.
Always have the property you are looking to buy independently surveyed - it can save you from making a terrible decision, or confirm that you are indeed, buying a property that's fairly valued.