As a mortgage intermediary, your clients rely on you for comprehensive advice, and a home survey is a key piece of that puzzle. Skipping a survey can leave buyers vulnerable to unexpected repair bills and potential buyer’s remorse. By highlighting the importance of this service, you are helping them to make well-informed decisions and protecting their financial interests for years to come.
However, despite the undeniable benefits, many buyers are still skipping this vital step. The latest data from the Q3 2024 Countrywide Surveying Services (CSS) Home Survey Trends Index shows only 16% of buyers commissioned a home condition survey. While this is an improvement from the previous quarter's 10.6%, it still means that the majority of buyers are potentially exposing themselves to significant risks.
For many buyers, a property can look perfect on the surface. However, hidden defects - whether it’s structural issues, damp, or faulty wiring - can go unnoticed without professional inspection. These issues can result in significant and unexpected repair bills. A professional survey highlights potential problems early, providing homebuyers with the insight they need to make informed decisions, negotiate on price, or budget for repairs.
For some clients, the perceived cost of a survey may seem like an unnecessary expense in an already costly process. However, the reality is that these costs are relatively small compared to what could be faced if hidden problems are discovered after the sale. According to Q3 2024 data, the costs of different surveys are as follows:
• RICS Home Survey Level 2: £468
• RICS Home Survey Level 3: £890
These costs may well pale into insignificance when compared to unknown issues which might not be immediately visible to the untrained, professional eye. Issues which could lead to unexpected costs running into the tens of thousands of pounds in some cases.
From a regional standpoint, the uptake of surveys varies by region, providing an opportunity for intermediaries to tailor advice based on location. In Q3 2024, the North West saw the highest engagement, with 18% of buyers opting for a RICS Home Survey Level 2 and 16% choosing a Level 3 Home Survey.
In contrast, the lowest uptake for a RICS Home Survey Level 2 was in the North and Greater London, with both registering 6%. The lowest uptake for a RICS Home Survey Level 3 was in the North and Wales, coming in at 5%.
Building long-term trust with clients
Positioning the home survey as an integral part of the property purchase process not only benefits your clients but also enhances your reputation as a trusted adviser. By explaining that a survey isn't just about uncovering defects but also protecting their investment, you're helping an array of clients to safeguard their future. Encouraging them to view a home survey as a necessary investment, rather than an optional extra, strengthens the value you provide in guiding them through the homebuying journey.
In a market where buying a home represents a huge emotional and financial milestone, a survey offers peace of mind. Encourage your clients to take this essential step, ensuring that their dream home doesn’t turn into a costly nightmare later down the road.