Home condition surveys have long played a crucial role in protecting an array of buyers from unexpected costs and ensuring informed decision-making. Yet confusion around surveys and valuations remains widespread. Recent consumer research by Pegasus, commissioned by Countrywide Surveying Services, highlights this significant knowledge gap - particularly among first-time buyers (FTBs) with 73% lacking confidence in the homebuying process.
One of the most striking findings within this study is that 88% of consumers who used a condition-related survey said they would do so again, demonstrating the clear value these surveys provide. Additionally, 92% reported that their survey gave them peace of mind around their ongoing research – which is again highly significant.
However, despite these obvious benefits, the survey did raise some worrying misunderstandings around the types of surveys available, their costs, and what they include.
The impact of confusion
Many clients mistakenly believe that a lender’s valuation is a full survey, when in reality, it is a basic assessment conducted for the lender’s benefit, not the buyers. This misconception means that all too many buyers rely solely on lender valuations, assuming they are receiving a detailed property inspection. In addition, many such valuations are not provided via a physical inspection.
This confusion is echoed by anecdotal evidence from mortgage professionals who took part in this research, saying:
“Clients think they should get a copy of a lender valuation, but they don’t always understand that it is for the lender, not them.”
“Most lenders used to offer Level 1 and 2 surveys, but now only provide a basic valuation. Many clients opt for the basic survey without understanding why a more in-depth report would benefit them.”
Such misunderstandings can lead to buyers skipping essential checks, potentially resulting in considerable financial harm.
The research found that 60% of surveys revealed unknown issues with the property, further highlighting their importance in avoiding costly surprises post-purchase.
Addressing common concerns
Some brokers and estate agents worry that more detailed surveys might stall sales or lead to renegotiations. However, the data suggests otherwise:
- Only 9% of buyers received a valuation below the agreed purchase price.
- Only 2% decided not to proceed with their purchase after the survey.
Rather than being a deal-breaker, a good survey provides buyers with reassurance and confidence in their purchase, which in turn helps sustain a healthy property market.
The role of intermediaries in educating clients
With 22% of buyers relying on their broker or lender for information on surveys, the intermediary market has a unique opportunity to guide clients through this critical part of the homebuying journey. Clarity around survey types, their costs (buyers are generally willing to pay between £300 - £750 for a comprehensive report), and their benefits can help improve client decision-making and lead to better outcomes.
Educating clients about the difference between a lender’s valuation and a home condition survey not only helps prevent costly mistakes but also strengthens trust and ensures positive customer outcomes. By actively recommending and explaining property condition, brokers can enhance their advisory role and provide a more transparent, client-focused service. This approach benefits all parties in a homebuying process which requires as much support, upfront information, and expertise as possible to streamline and accelerate every stage of an increasingly complex and demanding chain.
