If you’re thinking about buying a property, you’ve probably heard about home surveys. But did you know there are different levels of survey available? As you’d expect, each level offers something distinctive. So, we’ll explore what the different levels mean to help you decide which one is right for you.
The professional body which administers home surveys is the Royal Institution of Chartered Surveyors (RICS). They introduced a new Home Survey Standard in 2021 to increase consistency and transparency across the industry. You may be more familiar with the old survey names though, so we’ll explain how they relate to their replacements as we go.
Whichever survey you decide to go for, it will need to be carried out by a RICS professional. They’ll inspect the property and provide you with a written report afterwards.
Is a mortgage valuation the same as a survey?
Mortgage valuations and surveys are not the same. A survey evaluates the condition of the property prior to a buyer committing to the purchase. In contrast, a valuation, or a Level 1 Valuation Report as it’s formally known, is a brief inspection that’s carried out for the mortgage lender’s benefit.
A valuation or Level 1 Valuation Report only covers the essentials, such as the property’s size, location and its basic condition. It will also compare the property to similar properties sold recently in the same area.
This is to ensure that the property is suitable for the mortgage provider to lend against. This means that the valuation will need to take place before you receive your formal mortgage offer. It will also have to be carried out by your lender’s nominated valuer.
If you don’t need a mortgage to buy your property, you won’t need to get a valuation done. For your own piece of mind, you may still decide to request a survey though.
What does a RICS Level 2 Home Survey include?
Previously known as a Homebuyer’s Report. This level of survey can help you decide if you need additional advice before buying a property. It includes:
- A description of the property’s construction and condition at the point of inspection. It will flag potential issues and visible defects.
- Any problems the surveyor can see that are serious or need urgent attention. It will also identify things that need to be explored further to prevent serious damage.
- A standard visual inspection. It doesn’t involve removing secured panels, electrical fittings, inspection chamber covers and other similar features though.
- Advice about the amount of ongoing maintenance required. This can help you budget for potential future repairs and/or restoration.
- An extensive inspection of the roof space and drainage chamber.
It’s also possible to get a Level 2 Home Survey plus valuation, which includes the above plus:
- A reinstatement sum, which can help you avoid under or over-insurance.
- A valuation of the property, based on its market value.
What does a RICS Level 3 Home Survey include?
Previously known as a Full Building Survey, or a Structural Survey. A Level 3 Home Survey is the most in-depth survey available. It includes everything a Level 2 Home Survey does, aside from the optional valuation elements. As such, it won’t include a reinstatement sum or a valuation based on the market value.
However, it does have these additional features:
- It confirms how the property was built. This includes the materials used and how they’re likely to perform in the future.
- It describes visible defects, plus any potential problems posed by hidden defects.
- It describes options for repairs, including a timeline for carrying them out. It also explains what might happen if you don’t carry out repairs.
- It includes a longer, more detailed visual inspection of a wider range of issues. This includes a more thorough exploration of the roof space, grounds and floors.
Should I get a Level 2 or a Level 3 Home Survey?
We’ve looked at the differences between a Level 2 and a Level 3 Home Survey, but which one is right for you? There’s no right or wrong answer to this question as ultimately, it’s down to personal preference. However, RICS provide general guidance on how each level relates to different types of property.
A Level 2 Home Survey is generally suitable for most standard properties, in good condition, with a simple layout and form. Think along the lines of a house with its original layout, without any extensions or major alterations.
A Level 3 Home Survey is generally suitable for properties with:
- Non-standard construction, including the use of innovative construction materials
- Larger properties
- Properties with major alterations, or if you plan to make major alterations
- Properties that are in poor condition
- Very old properties i.e. those built earlier than 1850.
While a Level 2 Home Survey might be suitable for many properties, you may decide to go for a Level 3 Home Survey for peace of mind.
How long does a Level 3 Home Survey take?
A Level 3 Home Survey is the most detailed form of survey. Therefore, it generally takes more time than a Level 2 Home Survey. The size, complexity and condition of the property will affect how long it takes. On average though you’ll be looking at up to four hours for a Level 2 survey, and four to eight hours for a Level 3 survey.
When you choose a surveyor to undertake your survey, they’re likely to give you an idea about timings. This will also include when they can visit the property and when you can expect to receive their report.
Does a Level 3 Home Survey include a valuation?
Level 3 Home Surveys don’t include a valuation as standard. However, a market valuation and reinstatement cost assessment can generally be provided on request.
If you’re unsure which type of survey to go for, speak to a RICS professional before you go ahead. They’ll be able to advise which level is most appropriate for you and ensure you don’t miss anything.
