RICS Home Survey vs Mortgage Valuation: What's the difference?

When buying a property, it is important to understand the difference between a RICS Home Survey and a Mortgage Valuation. While both of these surveys may seem similar, they serve different purposes and it is essential to understand the difference between the two to make an informed decision.

What is a RICS Home Survey?

An RICS Home Survey is a survey that is carried out by a qualified surveyor. This detailed report provides information about the condition of the property you are interested in purchasing. The report will highlight any issues or defects that the surveyor has identified and will provide advice on any repairs that may need to be carried out.

There are three different types of RICS Home Survey:

1. RICS Condition Report - This is the most basic type of survey and provides an overview of the condition of the property.

2. RICS HomeBuyer Report - This is a more detailed survey that provides information about the condition of the property and any potential issues that may need to be addressed.

3. RICS Building Survey - This is the most comprehensive type of survey and provides a detailed report on the condition of the property, including any structural issues that may need to be addressed.

What is a Mortgage Valuation?

A Mortgage Valuation is a survey that is carried out by a surveyor who is appointed by your mortgage lender. The purpose of the Mortgage Valuation is to provide your lender with an independent valuation of the property that you are interested in purchasing. The surveyor will assess the value of the property and provide your lender with a report that outlines any issues or defects that may affect the value of the property.

Why should you not rely on a Mortgage Valuation?

While a Mortgage Valuation may seem like a cost-effective and easy option, there are several reasons why it should not be relied on when making an informed decision about the physical property.

Firstly, it is important to note that a Mortgage Valuation is not a comprehensive survey. The surveyor who carries out the Mortgage Valuation is only concerned with assessing the value of the property and identifying any issues that may affect the value of the property. The surveyor is not responsible for identifying any defects or issues with the property that may not affect its value.

Secondly, a Mortgage Valuation is not a requirement for obtaining a mortgage. While some lenders may require a Mortgage Valuation, you have the option to choose a RICS Home Survey instead. A RICS Home Survey will provide you with a comprehensive report on the condition of the property, including any defects or issues that may need to be addressed.

Thirdly, relying solely on a Mortgage Valuation may leave you at risk of purchasing a property that has underlying issues or defects that may not have been identified in the survey. This can result in unexpected repair costs and may affect the value of the property in the long run.

In conclusion, while a Mortgage Valuation may seem like an easy option, it is important to remember that it is not a comprehensive survey and will not identify the majority of defects or issues with the property. It is always advisable to choose an RICS Home Survey as it will provide you with a comprehensive report on the condition of the property and any repairs that may need to be carried out. Ultimately, the decision of whether to rely on a RICS Home Survey or a Mortgage Valuation will depend on your individual circumstances, but it is important to understand the difference between the two surveys to ensure that you make an informed decision.