surveys and valuations

[rangers1690]

what are the differences between a survey and an estate agents valuation of a property?

and what happens if there area gap between the two?

[andy hughes]

A survey is carried out by a structural engineer to make sure the propertyhas no major structural defects - subsidence, cracks in walls and so on. This information will be used to advise the Building Society as to whether or not it is advidable to advance a mortgage to a buyer for the property, or for a buyer, to make sure they are getting a sound property. It does not usually involve assessing a financial value.

A valuation is carried out by an estate agent who will assess the market value of the property, and what they would advise the seller to ask for it if that individual agent was to market the house for the seller. Valuations are subjective, and can vary from one agent to another. A lower valuation may result in a quick sale, but a higher one may fetch a better price if the buyer is willing to wait - it depends on circumstances for each individual seller. Valuations may vary, but not usually by very much - local estate agents tend to know what properties will sell for in their area, and since they get a percentage of the selling price, they will be keen to get the best price they realistically can.

[vicars]

Lets be cynical for a moment and assume the worst - an estate agent will value your property at a price they think they will sell it at. This means they will not give you well over the odds. However, by giving you a higher price than other agents they are more likely to get your business. Therefore get 3 valuations and work out which seems the most committed to selling and gives you a decent price.

A surveyor will most often be working for a mortgage lender and will give you one of three options - a basic survey, a homebuyers report or a full structural survey. The first is the cheapest and is essentially a report for the lender checking everything is OK and that if needed the house can be sold quickly if you default. A homebuyers is twice the cost but compares local property prices and is a more in depth report suggesting such things as getting a damp report if the walls have too high a damp reading etc etc. A full structural is the full works with the surveyor checking out everything they can for your benefit - the lender does not need this infor and this will cost twice the amount oh a homebuyers survey. If your surveyor gets it wrong you can rarely sue as you have signed saying you won't. The difference is where you hire your own privately where you can be most certain the valuer will report to you on anything you are particularly concerned about and you can have have a good natter before and after the survey. It is a good idea to go for the basic mortgage survey and get your own private one organised for ultimate peace of mind as you may actually want to prevent the lender from picking up on things that become mortgage conditions, while having ammunition to reduce the price of the property because your valuer has found all sorts of things wrong with it. For this reason it may actually save you money getting the most expensive report organised.

[OBonio]

Niec answer vicars.  I never thought of getting two surveys done... Great idea!