Level 1, 2 or 3? Which House Survey Should You Choose?

Your offer has been accepted on a Peterborough home.

Then the emails start.

Solicitor.

Mortgage.

Insurance.

Forms.

More forms.

And somewhere among them comes another decision:

Which survey do you want — Level 1, Level 2 or Level 3?

At first glance, it looks like three versions of the same product at three different prices.

It isn't.

A modern two-bedroom flat and a 100-year-old house with an extension, loft conversion and suspicious crack above the back door don't present the same risks.

So don't choose a survey by price alone.

Choose it around the building you're buying.

What Are the Three Survey Levels?

The Royal Institution of Chartered Surveyors (RICS) has three levels of home survey.

You can read RICS's own explanation of the different survey levels here:

RICS — Home surveys:

Level 1

This is the lightest of the three.

RICS says Level 1 is aimed at a conventional house, flat or bungalow built from common materials and apparently in reasonable condition.

The surveyor carries out a visual inspection and reports on the condition of different parts of the property.

You'll be told about defects that need attention and matters that could affect safety.

What you won't normally get is extensive advice about repairs and what they might involve.

Think of Level 1 as the broad overview.

For a relatively new, straightforward property with no obvious signs of trouble, that may be all you want.

For a Victorian house that's been extended twice and has a roof that appears to have seen several governments come and go, probably not.

Level 2

This is a step up.

Level 2 is also intended for conventional properties, but the report goes further into defects and gives advice on repairs and ongoing maintenance.

It can also be bought with a valuation.

For many ordinary houses, flats and bungalows, this is likely to be the level buyers find themselves considering.

Imagine you're buying a fairly standard Peterborough semi.

Nothing particularly alarming appeared during the viewing, but the property isn't new and you'd like somebody qualified to take a closer look before you exchange contracts.

Level 2 may fit that situation.

But don't choose it simply because it's sitting conveniently in the middle.

The property still decides.

Level 3

This is the detailed one.

RICS recommends considering Level 3 for properties that are:

• large

• older

• unusual

• run-down

• significantly altered

• built using uncommon materials

•  

It's also worth considering if you're planning major renovation.

A Level 3 report gives a more detailed assessment of the property's construction and condition, along with defects, repair options and what could happen if problems aren't dealt with.

Suppose you've fallen for an older Peterborough property.

It's got character.

It's also got an extension, some cracking, patches that might be damp and a loft conversion you're not entirely sure about.

Suddenly, saving money by choosing the least detailed survey doesn't look quite so clever.

Tell the Surveyor What You Saw

This bit is easy to miss.

You don't have to book the survey and then sit silently waiting for the report.

Tell the surveyor what concerned you when you viewed the property.

Maybe you noticed a brown mark on an upstairs ceiling.

Mention it.

A crack above a doorway?

Mention it.

A floor that seemed to slope?

Ask about it.

An extension?

Loft conversion?

Old windows?

Signs of damp?

Something strange going on with the roof?

Tell them.

And if you're planning major changes after moving in, explain those too.

You might be dreaming of knocking the kitchen and dining room into one enormous space.

The surveyor needs to know what's making you nervous and what you're hoping to do with the building.

Ask what the survey will cover before paying for it.

A Surveyor Can't See Through Walls

Paying for a survey doesn't give the surveyor X-ray vision.

Levels 1 and 2 are visual inspections.

Surveyors don't automatically start lifting secured floorboards, opening sealed panels or dismantling somebody else's house.

There will be parts of some properties they simply can't inspect.

That's why the limitations in the survey matter.

If there's a particular area you're concerned about, ask the surveyor whether they'll be able to inspect it.

If they can't, ask whether another specialist inspection might be needed.

That conversation before the survey could be far more valuable than discovering afterwards that the area you were most worried about wasn't accessible.

Your Mortgage Valuation Is Not Your Survey

This catches first-time buyers in particular.

Your mortgage lender may arrange a valuation.

That doesn't mean somebody has carried out a full condition survey on your behalf.

The lender wants to know whether the property provides adequate security for the mortgage.

That's a different question from:

“What might I have to repair after I buy this?”

A valuation shouldn't be treated as a replacement for a survey you've chosen based on the condition of the property.

MoneyHelper explains the difference between a mortgage valuation and a property survey here:

MoneyHelper — Surveys and valuations:

Don't Choose by Age Alone

Age gives you a clue.

It doesn't give you the answer.

A well-maintained older house might cause fewer concerns than a much newer property where alterations have been badly carried out.

Look at the whole building.

Has it been extended?

Has the loft been converted?

Are there visible cracks?

Any signs of damp?

What's the roof like?

Has it been neglected?

Is the construction unusual?

Are you planning substantial work?

And what did you spot during the viewing that made you think:

“Hmm. What's going on there?”

Those are the things to discuss with the surveyor.

Finding a Surveyor

RICS has a searchable directory where you can look for RICS-regulated firms by location:

RICS Find a Surveyor:

Don't just ask:

“How much is a Level 2?”

Tell them what you're buying.

Give them the property age if you know it, type of construction, extensions or conversions and anything you've noticed.

Then ask which level they recommend and why.

It's also worth asking what's included, what's excluded and when you'll receive the report.

If you're comparing quotes, compare the service as well as the price.

The £300 Question Could Be Hiding a £10,000 Problem

I'm not suggesting every older house is waiting to bankrupt its next owner.

Far from it.

Nor does paying for the most expensive survey guarantee that every defect will be found.

But the sums involved in buying a house make the difference between survey prices look rather different.

A roof problem can cost thousands.

So can structural work.

Damp can have several causes, and fixing the visible patch without finding the cause doesn't get you very far.

If something significant turns up before exchange, you at least know about it while you still have choices.

You can investigate further.

Get specialist advice.

Ask for quotes.

Discuss the price with the seller.

Or decide the property isn't for you.

Finding the same problem after completion leaves you with one rather significant difference.

It's your house now.

So when the survey email arrives, don't automatically click the cheapest option.

Look at the building.

Think back to the viewing.

Write down anything that bothered you.

Then talk to the surveyor before deciding between Level 1, Level 2 and Level 3.

A survey isn't there to tell you whether you've found your dream home.

It's there to tell you more about the building you're about to spend a very large amount of money buying.

Ask your surveying questions in the comments below