Should you get a building survey before buying at auction – Auction House London investigates
While not strictly necessary or compulsory, getting a building survey before buying a property at auction is still highly advisable. The survey will uncover any hidden issues with the property that may end up costing you much more to fix further down the line.
If you are in any way unsure about the structure or condition of the property, then it is a good idea to instruct a surveyor to inspect it thoroughly, as you will be locked into the purchase once your successful bid is accepted.
In any property purchase, by auction or by private treaty, the only reason not to get a building survey is if you are certain, it is in excellent condition. But the facts are that it is nigh on impossible to be 100% certain until an experienced expert has conducted a survey. The immediate contract exchange at auction only highlights the importance of ensuring you have conducted your due diligence.
Auction House London, experts in property auctions in London and the surrounding areas, examine the reasons why you should consider conducting a building survey before you bid on a property at auction; below we weigh up the pros and cons to help you make the correct decision.
Building Survey Legal Requirements
As previously highlighted, building surveys are not legally required under UK property law before purchasing a property. However, they are highly recommended no matter which route is taken to purchase property as an auction purchase is legal binding on the fall of the gavel, the risks associated with buying at auction can always be mitigated when you have done your due diligence and taken the correct advice from the experts including surveyors. It is important to have a clear understanding of the property’s condition before you become contractually obliged, as this can save you from unforeseen expenses and issues after the purchase.
Benefits of Getting a Building Survey
A building survey can reveal problems such as structural issues, damp, or other defects that may not be immediately apparent looking at images or through an in-person viewing at the property. An expert surveyor will know exactly what and where to check for such issues and will recognise the signs even if they are small and unrecognisable to the untrained eye.
The survey will also help you understand the extent of any necessary repairs or renovations, which will obviously help you determine your budget and allow you to make an informed bid. You may need to lower your bid ceiling if you know that some of your budget must be spent on renovations. Also bear in mind that some properties available at auction are dilapidated, thus you would need a survey to know the exact extent of the dilapidation. A good example would be three-bedroom end of terraced house situated in Forest Gate London listed in our December Auction. Other properties may have been vacant for a significant amount of time, such as this detached bungalow in Middlesex.
Uncovering issues through a building survey is not necessarily a bad thing either, as knowledge of the property’s defects can be used to set a realistic bidding limit. It is also possible that the property seller themselves is unaware of the issues and which may be a good negotiation tool if the property does not sell at the auction and there is a desire to do a deal after the auction.
Ultimately, it comes down to making an informed decision, avoiding potential money pits, and simply providing you with peace of mind when you bid for your desired property.
Building Survey Concerns
Building surveys are, of course, an additional cost which you will need to factor into your budget. Surveys can be expensive, and the costs can mount up if you are considering several different properties. Also the money invested on a survey will not be refunded if you are unsuccessful in your bid.
Another concern to consider is how time-consuming surveys can be. Arranging and waiting for a survey can be problematic, particularly if the auction date is close.
Alternatives to Building Surveys
One alternative to building surveys is a HomeBuyer’s Report, which features significantly less details but still provides valuable insights into the property’s condition. A HomeBuyer’s Report generally includes a visual inspection of all the major indoor features such as walls, ceilings and bathrooms, as well as all permanent outbuildings and outdoor features such as outer walls and the roof. There will also be an assessment of the insulation, damp-proofing and drainage.
Another alternative is the Condition Report, also known as the RICS Home Survey Level 1. This is the most basic type of survey which provides an overview of the property’s condition without detailed analysis. This report will review the structure of the building, note any maintenance concerns, and assess the general state of repair of the property.
Auction House London prides itself on not just meeting but exceeding our customers’ expectations for their property buying or selling experience, so if you have any questions about getting a survey ahead of buying property at auction, please contact our team of auction professionals. If you’re looking to buy residential or commercial property, browse through the lots listed in our forthcoming auction. Or, if you have property you want to sell, why not see how much it could be worth in an auction with a free valuation by Auction House London.