Purchasing a property is an exciting yet intricate process, and one of the pivotal stages is conducting a property survey. This critical step provides potential buyers with essential insights into the condition of the property, identifying any underlying issues that may not be visible during initial viewings. However, it's not uncommon for house sales to fall through after a survey. In this blog post, we'll explore the factors that contribute to this and provide an overview of how many house sales are affected.
Understanding the Role of a Survey
A property survey, such as a RICS Level 2 or Level 3 survey, is designed to assess the overall condition of a property. Surveyors examine various elements, including the structural integrity, roof condition, plumbing, electrical systems, and potential issues like damp or subsidence. The survey report highlights any defects or areas of concern, providing buyers with a comprehensive overview of the property's condition.
Why Do House Sales Fall Through After a Survey?
Several factors can lead to a house sale falling through after a survey:
Significant Structural Issues: Discovering major structural problems, such as foundation issues, subsidence, or severe damp, can be a deal-breaker for many buyers. These issues often require substantial investment to rectify, making the property less appealing.
Unexpected Costs: If a survey reveals numerous defects requiring costly repairs, buyers may reconsider their purchase. The additional financial burden can lead to the decision to withdraw from the sale.
Valuation Concerns: Surveys sometimes highlight that a property's market value is lower than the agreed purchase price. This discrepancy can result in buyers renegotiating the price or walking away from the deal if an agreement can't be reached.
Health and Safety Risks: Identifying health and safety risks, such as faulty wiring, gas leaks, or asbestos, can be alarming for buyers. The potential hazards and the cost of making the property safe may deter them from proceeding.
Lender Requirements: Mortgage lenders often require surveys to ensure the property is a sound investment. If the survey report raises concerns, lenders may withdraw their mortgage offer, leading to the collapse of the sale.
How Many House Sales Are Affected?
While it's challenging to provide an exact number, industry estimates suggest that approximately 20-30% of house sales fall through after a survey. This statistic highlights the importance of property surveys in the home-buying process and the significant impact they can have on sales.
Minimizing the Risk of a Sale Falling Through
Both buyers and sellers can take steps to minimize the risk of a sale falling through after a survey:
For Buyers: Engaging a qualified surveyor and carefully reviewing the survey report is crucial. If issues are identified, consider negotiating the purchase price or requesting the seller to address the defects before completion.
For Sellers: Conducting a pre-sale survey can help identify and rectify potential issues before listing the property. Being transparent about the property's condition and addressing any defects can make the sale process smoother.
Conclusion
Property surveys are an essential part of the home-buying process, providing valuable insights into the condition of a property. While they can sometimes lead to sales falling through, they ultimately protect buyers from making uninformed decisions and investing in properties with significant issues. At NIVEK Surveying Services, we specialize in conducting thorough and professional surveys to help buyers and sellers navigate the complexities of property transactions. Contact us today to learn more about our services and how we can assist you in your property journey.
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