Matthew Cumber, managing director of Countrywide Surveying Services, explains why a survey should be talked of, and viewed as, an investment rather than an additional cost.
Throughout the wider homebuying process, it’s vital that every link in the chain actively encourages and ensures that their clients have access to as much data, expertise, advice and insights to make the most informed decision possible. If you break this down, I’m sure that every component within this journey would say that they are doing their best to provide this service. So, why is there still a significant lack of understanding around the homebuying process?
And particularly regarding the critical step of instruction a survey?
An awareness gap that was evident in the latest iteration of our latest Home Survey Trends Index for Q2 2024.
Although there was a slight increase in the number of homebuyers instructing a home condition survey in Q2, a quarterly rise of 0.9%, this figure still stands at only 10.6%. This includes those who opted for a RICS Home Survey Level 2, RICS Home Survey Level 2 with Valuation, and RICS Home Survey Level 3 across England, Wales, and Northern Ireland.
The data breakdown
In Q2 2024, the distribution of survey types was as follows:
• RICS Home Survey Level 2: 49% (down from 61% in Q1).• RICS Home Survey Level 2 with Valuation: 44% (up from 33% in Q1).• RICS Home Survey Level 3: 7% (up from 6% in Q1).
The uptake of surveys also varied by region:
Highest Uptake:
• RICS Home Survey Level 2: North West (17%).• RICS Home Survey Level 2 with Valuation: North West, South East, and West Midlands (14%).• RICS Home Survey Level 3: North West (16%).
Lowest Uptake:
• RICS Home Survey Level 2: North (6%).• RICS Home Survey Level 2 with Valuation: East Anglia and Wales (7%).• RICS Home Survey Level 3: North (4%).
Inevitably, cost remains a key consideration for many homebuyers, but the end figure is often less than people might initially think (up to £500 for an average priced property) and a survey should be talked of, and viewed as, an investment rather than an additional cost. After all, we all know that surveys can uncover a host of structural issues, assist in price negotiations, prevent unexpected repair costs and ultimately lower the buyers exposure to immediate and future risks, unforeseen costs, and potential disruptions throughout the transaction.
With only 10.6% of new purchases including a survey, it’s clear that we still have a long way to go as an industry in educating potential buyers on the benefits attached to this critical component within the wide homebuying process.
For brokers, the message is loud and clear. Being an advocate of home surveys and upfront material information is not just beneficial but essential. Encouraging clients to opt for the right level of home survey can save them time, money, and potential heartache, and also help reinforce your role as a trusted adviser.
Article taken from The Financial Reporter Online
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