Posts Tagged ‘Asking Price’

As only a small minority of buyers have any private survey we at PROinspect are concerned for thePublic. HIPs were to have Sellers Surveys, the best thing possible for buyers, but disinformation and politics managed to knock it out of sight.

So What do you need to do – When and How?

Don’t ring a Surveyor and say “I need a survey, how much do you charge?”. This does not give the Surveyor a chance to understand what you are buying and making a recommendation on the best survey product. The Surveyor could, in many scenarios, save you many pounds if you will only take the time to listen.

It all starts with how you approach your private Surveyor………..

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What are you buying – House Bungalow Flat.

How old is it? – Victorian Modern 1930′s etc….

How big is it? – No of Bedrooms? No of reception rooms? etc….

What is its general state? – Modernised? Well presented? Derelict?

What price have you offered OR what is the Asking Price?

Where is it? – Which Town or Post Code etc….

Do you have specific plans for the home?

Do you have specific concerns about anything?

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These matters allow the Surveyor to understand YOU and what you are BUYING. Once you have agreed the survey product and a fee cost and issued an clear instruction for us to proceed we will need the following type of data from you:-

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Required Customer Information

PROinspect and our customers must communicate and agree at least the following data and terms:

1. Client name and full address (if more than one person then multiple data is needed).
2. Home, work and mobile call details of each client.
3. Preferred E-mail address of each client.
4. Full address of home to be inspected (including post code).
5. Home access method and details (typically an Estate Agents full details).
6. If a home HIP exists – the full reference number of that document in sufficient detail to allow us to download it.
7. If the client knows what survey product they need then please provide the NAME of that product OR tell us what is worrying you about the home.
8. What extras to the standard service level are needed?
9. Fee agreement – the sum, how and when it will be paid etc… We usually require full payment before we submit our Report or findings to the customer.
10. The urgency of the transaction (do you have any pre-agreed deadlines?).
11. Full details of your solicitor (including call number, name and personal e-mail address).

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PROinspect will then e-mail or mail our verification, business Terms, product scheme, Conditions plus fee Invoice.

We will contact the Agent or Home Owner and do all that is necessary to inspect the premises and to report to you. Once you have our verified Fee Quotation and Terms/Conditions, and have indicated your full agreement o our service(s), then we do everything leaving you free of the stress and worry of having to organize anything.

It really is simple – if you are looking, or live in, Southern England call me for further advice and opinion.  +44 (0)1489 896 174 or use the CONTACT FORM above. Stuart Parrett.

1- Do I need a Surveyor?

BUYING – Chances are that the home you are buying is OK. What if it isn’t? Do you carry the risk? Would the value of the house be lower with significant defects? We would be insured against serious matters, wouldn’t we?

Is the message becoming clear? Why accept risk when you don’t have to? Any defect, minor or serious, is not an insurable peril if it existed when you bought your home (Insurers call these matters “pre-existing-defects”).

Also remember – don’t be fooled into thinking that just because your Loan Company have advanced a large sum means that the premises are free of defects. A Valuation Report IS NOT A SURVEY and in an increasing number of cases such Valuations are produced without inspecting the premises.

So – do you need a Surveyor? The answer is a resounding YES, you do.

SELLING – Increasingly the wise home owner, but only those who can afford this benefit as it is not essential, is choosing to commission a Seller Survey. This is something new but it can be relied upon by Loan Companies and Purchasers (either could sue the Surveyor even though the report was commissioned and paid for by the seller).

Why would a Seller want such a survey? To prove there is nothing wrong or to say, yes we do have condition issues but the report quantifies them and are Asking Price has been set accordingly (thus limiting the negotiation time and angles that otherwise cut in later in the disposal transaction period).

IMPROVING – Thinking of having Conservatory or new windows or a loft conversion? STOP and THINK.

Will that money actually add value to your home? Not all improvements add value. Do you need a Valuers opinion?

If you have just had such works completed do you realise that you may have forgotten something else? You have just created additional costs should your home have to be rebuilt for whatever reason. Did you increase the sum of money that represents the ceiling sum within your Buildings Insurance policy? Do you know how to calculate the rebuild cost of your home?

Surveyors/Valuers are needed at almost any stage of any project to do with housing.

QU – What factors combine to increase the risk of defects at residential properties?

ANS – Age: certain forms of construction: the degree of DIY completed: the type of sub-soil the home is built on (clays being the worst): is the home under threat from flooding?: lack of past maintenance: certain ages of home have certain defects “built in”: the quality of alterations and extensions: weather exposure: the list be long………..

QU – I can do what a Surveyor does; it’s easy. Why bother with using a Surveyor?

ANS – Our standard answer revolves around – anyone can see if the paintwork is peeling, if the roof has a hole in it, if the walls are cracked or not, etc…. But, consider this …… could you recognise the difference between subsidence, settlement and heave? …… could you recognise the difference between wet rot and dry rot and know the implications of that distinction? …… if the roof contours were straight could you still recognise when a roof frame is under serious stress? …… could you diagnose cavity-wall-tie-corrosion problems? …… before you went to the house would you know if it was in a district that suffers from defects such as Mundic, Radon Gas, Black Ash, Subsidence, Flooding and other serious problems?

2-         When do I need a Surveyor?

This is a more tricky question.

Sometimes it all depends on cost – if you are buying a Leasehold home/flat the legal and other researches needed are much more costly in which case it can make sense to commission all those matters first and leave the survey until later in the transaction.

However, in most cases it is wise the consider appointing a private surveyor as soon as possible after having your bid approved by the seller.

Private surveys will focus on the negative about the property and discuss the defects and their effect on saleability and value. Are these matters you would necessarily want your Loan Company to know about? Why then would you consider using the Loan Valuer for a simultaneous private survey? It just doesn’t make any sense.

Always commission a separate Loan Valuation and Private Survey.

In some cases the Loan Company Valuation report or researches will state that signs of a defect were noted or that the home is at high risk of ………… In these cases we would suggest you contact PROinspect immediate and talk through your worries. It is possible we can give you the re-assurance you need to move forward; if we cannot then we should be able to suggest a Survey Product designed to provide exactly what you want OR refer you to another professional who will be able to help you specifically.

Don’t forget your Surveyor after you have moved in. Many times during your occupation you may need a chat before you commit to a course of action that if you get it wrong may later rebound to haunt you —

• I live in an exposed coastal position. Is cavity wall insulation a good idea?
• Will converting the garage into a dining room add value to the home?
• After the snow of New Year 2010 I noticed a bow to my main roof – can you check it out?
• We had XXXXX works completed but are not happy with some elements of the finish and need your opinion?
• We are getting mould and condensation. Can you help us?
• We have had an extension done and now need to increase our Home Insurance to reflect that work. Can you calculate the right sum for us?

And finally…. when you come to selling your home you nowadays have the option to commission a Sellers Survey to prove your homes’ condition. Any buyer can rely on that report and either seller or buyer could sue us if we have got something seriously wrong. In England we are not used to such a Survey Product but in the difficult times we now live in this is something that should be at least considered before you instruct an Estate Agent.

3 – What Survey Product will I need?

1, 2 or 3 or something else?

First of all do completely forget what any other professional adviser has mentioned to you. How many times have we heard customers tell us what “the man in the pub” told them they should ask for.

If you need property advice about surveys who is the right person to take a brief from? Your Solicitor? The Estate Agent? Your Neighbour? NO – tell the Surveyor what your needs are and he/she will recommend the right product that will deliver the re-assurance you need to move forward.

In industry jargon there are only three basic types of property inspection – the higher the number the higher the complexity, fee cost,

• LEVEL 1 Any brief inspection that is not a survey. All Valuations are at this level.
• LEVEL 2 Defined/Limited/Economy surveys or inspections. The most popular forms of Home Surveys are at this level. Included here are Specific Defect Surveys and diagnostic viewings.
• LEVEL 3 These inspections carry the higher fee costs, the surveyor accepts much higher levels of liability to you, the survey products are in much greater details, extras can be added to tailor the final product to your exact needs and budget. Building Surveys and Expert Witness Reports fall into this category.

Level 2 Reports are by far the most popular in the UK and the one Report Product that is head-and-Shoulders above the rest is the Royal Institution of Chartered Surveyors Homebuyer Report (the HBR). It becomes highly important that potential customers discuss their needs direct with a Surveyor BEFORE they issue an instruction. This ensures that the Survey Product obtained is both relevant and focussed to that clients need and budget.

To list a few Level 2 products will make our meaning clearer:-

1. Royal Institution of Chartered Surveyors Homebuyer Report (the HBR).
2. SAVA Home Condition Report
3. SAVA Home Condition Survey
4. PROinspect Landlords Property Report
5. Thermal Imaging diagnostic reports for leakages and condensation
6. Schedule of Condition (usually with a high element of photography)
7. Schedule of Dilapidation.
8. Specific Defect Report.
9. Pre section 35 (CPR) Expert Witness Report.
10. Boundary and/or Contractor dispute opinion Report.

ARCHIVE DOCUMENT from OCT 2008

01 : WOULD SELLER SURVEYS HELP SELL HOMES?

The Home Condition Survey or Report are bespoke survey products that the new breed of Home Inspector can produce. They are products that are commissioned by the Seller but the Buyer can rely upon and sue the Inspector is they are inaccurate/negligent.

In these trying market circumstances we ask the question “would such survey products help sellers sell their homes?”. The answer, of course, is not clear cut and never will be as it all depends and the individual home in question and the attitudes of Buyers: both are as individual as the multivarious forms of English housing.

A judgement needs to be made: does your home have condition issues? Also, if it is of unusual construction or design then Buyers my need re-assurance that all is well and these survey forms may just deliver that to them.

Cost is also a factor to consider: fee costs are variable but a normal range may be £275 to £450: when this is related to the overall cost of buying and selling then it is minor in relative terms.

The bottom line is that in a market whereby “Buyers are King”, do you really what to leave that power with them OR, instead, cut condition issues from them and positively declare all matters such that your Agents can say “price reflects condition as codified with the Sellers Survey”. This transfers a lot of negotiation power back into your own hands, provided your Asking Price was reasonable at the start of marketing.

Another bottom line is – many Agents consider such Seller Surveys as gimmicks and of highly limited value. However, are you sure of this? If just one or two additional house sells materialised because of such Reports, what would that do to your currently depleted income?

NOW really is the time to seriously consider a Home Condition Report/Survey field test.

Why not try it out on just a few instructions which we would try to fee cost very competitively?

02 : PITCH FIBRE DRAINS – these drains are dead!

Pitch fibre drainage pipes were introduced in the 1940s, and used extensively until the 1970s. They were thought at the time to be the latest wonder material, being cheaper than fired clay pipes, and also lightweight and easy to handle. They were made from wood fibre impregnated with coal tar, and have performed adequately when dealing with normal waste water. However, they have been found to react badly when subjected to large quantities of hot water, and to oils and fats, which can soften the tar and cause deformation and leaks. The design life of pitch fibre pipes was recently estimated to be about 40 years, meaning that now many will have reached the end of their life expectancy.

Even small delaminations or other damage can screen more serious, and sudden, problems that can totally destroy your drainage system. You really need to have a Closed Circuit TV report completed to “see” the scale of your problems (a local Drainage Contractor will do this for a fee!).

If your system has reached the end of its life then you have options to consider:- in some cases drain relining can be considered as a reasonable repair method, but this is rare. Often you will need to dig a trench and relay using better materials/products – an experience that will be both expensive and highly disruptive. It might be worth investigating whether the old drain runs could be abandoned, and new drains laid alongside them in a less critical area of your land (often drains are under paths and driveways).

If drain re-lining is practical (and you need to take professional advice to get to this conclusion) then the delaminated and collapsed pitch-fibre pipes may be capable of being forced back into shape with a re-rounding tool dragged through them, and a resin-impregnated polyester textile liner introduced that is designed to be strong enough to withstand further movements and pressures.

However, before you do anything, it might also be worth checking with your Buildings or Drainage Insurers, as there have been cases where Insurers have paid for drain renewal under “accidental damage” claims. This could be misleading as often the “sum insured” will be inadequate to cover the high cost of repairs and/or some Insurers will maintain that such damage is not accidental and therefore they will repudiate your total claim. However, minor momentum is gathering to suggest some Insurers are taking a more enlightened stance!

03 : THE WRONG PLASTER?

If you live in a Georgian property (homes constructed typically between about 1720 to 1800) you will probably have walls that are solid and about 9 inches (225mm) thick. Such walls are “one brick thick” and will have been laid/set with sand-lime mortar and plastered with traditional lime plaster (originally with a lime wash finish). Indeed, many later and Victorian homes can have such plasters in them.

Leap to now and some rooms may require new plaster. Unfortunately modern building contractors will quote for the use of modern bonding plaster with multi-finish skim coat. These materials are dense, hard plasters and will not allow the wall to breathe and any movement in the old solid walls will result in ugly cracking.

The text books all say that you should use lime-and-hair plaster to match the original. Bonding plaster and multi-finish plaster are calcium sulphate based which is unsuitable for old houses and especially those with solid brick walls as it can absorb moisture from the walls and then dissolve. Also it is harder than lime plaster so cracks will inevitably open up between the two materials.

Unfortunately, it is very difficult to find plasterers or general builders who understand this, or who know how to use the traditional materials. Local Authority Conservation Officers (in Planning or Building Control departments) can often recommend local Specialist or you could get a list of tradesmen from the Building Limes Forum by visiting www.buildinglimesforum.org.uk or by sending a SAE to 33 Barony Street, Edinburgh EH3 6NX.

04 : PERIOD & DATE TIME-LINE

An Agent came to me recently and asked what dates does “Victorian” mean. On the face of it I thought that he was kidding, but he was serious. In fact the answer is not just a series of dates for each “Period”. No, it starts from the dates of our Monarchs but the real answer relates to styles of architecture that epitimise a Monarchs reign and often these overlap and merge. The commonest and simplest answer is the time-line shown opposite.

The listing, after the Victorian Period entry, outlines keys dates during which vernacular styles or Building Regulations changed dramatically and are essential to Energy Performance Certificate DEAs. Indeed, if you accurately know Building Dates all professionals would love you forever if that fact is stated in your Agents Particulars as you are saving the Energy Assessor or private Surveyor a lot of time and effort. In this market that is definitely on the PLUS side of the coin!