What is a House Offer Subject to Survey?
When a buyer makes an offer "subject to survey," they're telling the seller that they like the property but the price offered is subject to change if the survey uncovers any defects.
A survey is like a house's MOT – it checks for any nasty surprises that might not otherwise be obvious. If the survey comes back clean, you're good to go. If it finds problems, you can renegotiate the price or even pull out. You wouldn't buy a car before taking it out for a test drive, would you?
An offer subject to survey is one of the most common safety measures buyers use. It means the buyer can withdraw from the sale if the survey reveals significant defects or issues with the property.
Which survey do you need?
- Snagging Survey: For new builds up to 2 years old.
- Level 2 Home Survey: For most modern properties which are in good condition.
- Level 3 Home Survey: If you're buying an older property, a property with extensions or alterations, or if you plan major work.
Read our guide for help choosing what type of survey you need; or, you can call our survey team on 0333 344 3234, and we'll explain the differences and what level is right for you.
We do not sell Level 1 Surveys as we don't think they are comprehensive enough to fulfil the buyer's interests.
Why make an offer subject to survey?
You should always make an offer subject to contract and survey. It lets the seller know you may renegotiate but also means you're serious about the offer because you're about to instruct a surveyor.
Subject to contract (STC) - meaning the sale is finalised once solicitors have exchanged the legally binding contracts.
Subject to survey - allowing the costs for highlighted defects in the surveyor's report to be accounted for and addressed before completion.
Pros
- A survey gives you peace of mind and helps protect your wallet; knowing what you're getting yourself into is priceless.
- If you find any issues, you're in a stronger position to negotiate a better price. You could ask for a price reduction or demand the seller fixes the issues before exchange.
- If there are significant issues, you can pull out and find a different property, instead of tying yourself into an unsafe, or unlivable, or unaffordable property.
Cons
- Making an offer subject to a condition will extend the buying process by a couple of weeks as you wait for the survey and then results.
- There is no guarantee of reasonable negotiations. While a survey gives you a reliable, independent professional opinion, some sellers will refuse to accept their house is worth less than they hoped, and broken-down negotiations can be stressful and time consuming.
While an offer subject to survey can be frustrating for sellers, they have to understand the buyer's perspective. Accepting an offer with this condition shows you're confident in the property's condition and willing to address any issues raised by the survey.
Don't be that person who regrets their house purchase. It might seem tempting to skip the survey and speed up the process, but it's a risky gamble. A small investment in a survey could save you thousands in the long run.
What happens next?
If the survey gives your house a clean bill of health, you can move on to the next steps, like sorting out the legal stuff. But if the surveyor finds problems, you've got a few options. You can try to negotiate a lower price, ask the seller to fix the issues, or sadly, pull out of the deal.
If the survey is clear
- Celebrate! The survey has revealed no major issues, so you can relax a little and focus on the legal side of the process.
- Property searches: Your solicitor will run local authority searches to uncover any potential issues like planning permission problems or environmental concerns.
- Enquiries: Your solicitor will send enquiries to the seller's solicitor to clarify any points raised by the survey or searches.
- Exchange of contracts: Once you're happy with the results, you'll exchange contracts with the seller, marking a legally binding agreement.
- Completion: The final stage, where you get the keys and officially become the homeowner!
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If the survey finds problems
Don't panic if your survey highlights issues. It's common for older properties to have quirks. Here's what you can do:
- Understand the issues: Talk to your surveyor to get a sense of the problems. Are they cosmetic or structural? How urgent are they?
- Negotiate: Use the survey findings to renegotiate the purchase price or ask the seller to rectify specific problems.
- Seek professional advice: Consult with a surveyor or structural engineer to assess the severity of the issues.
- Insist on repairs: If the problems are significant, you might consider making the purchase conditional on the seller carrying out necessary repairs.
- Walk away: In some cases, the survey might reveal issues so severe that you decide to pull out of the purchase.
If there is a major problem it may affect your mortgage offer. If the lender finds out about a problem which would affect their resale value in the event of repossession, they may reduce or withdraw their offer.
If you can negotiate the price down to reflect the lender's new offer, this shouldn't be a problem. If the mortgage lender is unwilling to lend on the property, this is a strong indication that you shouldn't risk your own money on it either.
16% of homeowners discover defects
In our recent survey, 16% of homeowners found defects; including 2% who were able to pull out of a bad purchase, 7% who were able to negotiate a better price, and sadly, 7% of homeowners who did not get a survey and discovered defects after the purchase.
12 of the 39 who remembered how much these defects cost to remedy spent over £5,000
Don't burn your money, book a survey.
Remember: Making an offer subject to survey is like wearing a safety net. It protects you from buying a house that could turn into a money pit.
How much does a house survey cost?
Let's talk money. Surveys aren't free, but they're an investment in your peace of mind. The cost depends on the type of survey you choose and the size and location of the property.
- Level 1 Survey: The most basic, usually costing between £300 and £600.
- Level 2 Survey: More detailed, typically ranging from £400 to £1,000.
- Level 3 Survey: The most comprehensive, costing anywhere from £600 to £1,500 or more.
Remember, these are rough estimates. The actual cost can vary based on several factors, including the property's age, size, and location.
Common concerns about subject to survey offers
While making an offer subject to survey is generally a wise move, there are some common concerns that potential buyers have. Let's address them:
Will making an offer subject to survey weaken my position?
This is a common concern, but it's often unfounded. Making a subject to survey offer can demonstrate your seriousness about the purchase while protecting your interests.
How long will the process take?
Adding a subject to survey clause can extend the buying process slightly due to the time taken to complete the survey and address any issues. However, it's essential to protect your investment.
What if I fall in love with the property?
It's understandable to be eager to move in quickly, but rushing the process can lead to costly mistakes. A survey is a small price to pay for peace of mind.
Can I negotiate after the survey?
Absolutely! If the survey reveals issues, you're in a strong position to negotiate a lower price or request repairs.
SAM can sort your survey
SAM's costs for a Level 2 Survey start at £375 EXC VAT, and for a Level 3 Survey start at £499 EXC VAT. Our surveyors are available from 31/10/2024*.
While it might be tempting to go for the cheapest option, a good surveyor is worth their weight in gold. Don't skimp on this important investment.
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