Some homeowners do not know who is responsible for advising on the physical condition of a property prior to purchase according to the latest research. They are also unclear as to the purpose of a mortgage lender’s property valuation report, suggesting a need for greater clarity within the home-buying process.
Whose job is it anyway?
A YouGov survey commissioned by
Landmark Valuation and
Countrywide Surveying has highlighted confusion regarding how to detect a property’s condition before proceeding with a purchase. Sixty five percent correctly stated that the valuation report is for the benefit of the mortgage lender, yet over a third (35%) thought it for buyers to use to determine whether the property is worth the agreed purchase price.
Just over a quarter (26%) felt it is there to provide buyers with details on the condition of the home, while 15% of respondents directly stated that they did not know the rationale behind a valuation report. In addition, when asked what would help improve the current home-buying process:
• 7 out of 10 respondents said they would like to receive information upfront regarding the physical condition of a property
• 58% said it would be desirable to receive outline costs for specific repairs needed to a property prior to purchase
• 45% felt that receiving upfront information relating to environmental issues connected to the property would be beneficial
• 1 in 5 of respondents said they used the details provided by the estate agent to assess the condition of the property prior to completion
• 35% said they used the lender’s mortgage valuation to research into the physical condition of the property prior to completion
• 12% stated that they did not know who is mainly responsible for advising buyers on the physical condition of a property.
In a separate study by
ComRes for
RICS showed that, on average, homebuyers spend £5,750GBP on repairs after they have moved into their homes. This is often down to a failure to get the right survey done.
The results confirm that consumers need better information to ensure that everyone is entering a property transaction ‘eyes wide open’.
