Surveys and Valuation

Michael Power Associates realise that buying a property is one of the most important financial commitments you will make.

It is important to remember that your mortgage lender's valuation report is not a survey. It merely advises your lender whether or not the property is reasonable security for your loan.

A more detailed report will advise you of the actual condition of the property. It will provide you with vital information that can be invaluable during price negotiations.

There are two types of reports that can be offered both undertaken to a standard format set by the RICS. They are suitable for properties of conventional construction built within the last one hundred and fifty years. They are not suitable for properties in need of extensive renovation or if planning major alterations.

The RICS Condition Report gives you clear "traffic light" ratings showing the condition of different parts of the building, services, garage and outbuildings. It highlights problems that require varying degrees of attention. It provides a summary of the risks to the condition of the building and other matters including guarantees, planning and building control issues for your legal advisors. However, the Condition Report does not include a valuation.

The RICS HomeBuyer Report contains all the features of the Condition Report but is a more extensive inspection. It includes the surveyor's professional opinion of the market value of the property together with an insurance reinstatement figure. It provides a list of problems that the surveyor considers may affet the value of the property.

The below table will help you choose the most appropriate survey, but if you have any particular requirements, remember to discuss them with your surveyor before the inspection of the property. The surveyor may be able to provide you with extra services, under separate contracts.

Service Features	RICS Condition Report Service	RICS HomeBuyer Report Service
Describes the construction and condition of the property on the date of the inspection.	✔	✔
Aims to identify any problems that need urgent attention or are serious.	✔	✔
Aims to identify things that need to be investigated further to prevent serious damage.	✔	✔
Aims to tell you about problems that may be hazardous.	✔	✔
Aims to show up potential issues and defects, before any transaction takes place.	✔	✔
Includes the standard visual inspection during which secured panels, electrical fittings, inspection chamber covers and other similar features are not removed.	✔	✔
Aims to help you decide whether you need extra advice before committing to purchase.		✔
Aims to help you prepare a budget for any repairs or restoration.		✔
Aims to advise you on the amount of ongoing maintenance required in the future.		✔
An enhanced service that includes all the features of the standard inspection plus a more extensive roof space and underground drainage inspection.		✔
Provides a reinstatement cost to help you avoid under- or over-insurance.		✔
Provides market valuation.		✔

For more information, visit www.rics.org/homesurveys or www.rics.org/usefulguides