When it comes to investing in property, there's lots of different avenues to choose from, whether it's buying a property to rent out, or doing up an old property to sell on. 

For many people new builds are an enticing option. They're modern, low-maintenance, and often come with all the fixtures and fittings a landlord might need. 

But, investing in new builds isn't for everyone. Some people are put off by the so-called 'new build premium', and the risks of investing in something that's not yet been built. 

In this article we look at the things you should consider before investing in property generally, and the pros and cons of new builds specifically. 

## How to invest in property

Although property investment might conjure images of high rises owned by large companies, or dramatic building renovations, most people who invest in property do so on a much smaller scale. 

[45% of the 1.5 million private landlords in the UK own just one buy-to-let property](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/775002/EPLS_main_report.pdf), and about a third of landlords originally bought their buy-to-let property to live in, rather than to rent out. 

Becoming a landlord isn't the only way to invest in property, either. Many people purchase properties to renovate or extend, and then sell on for a profit. 

Others take a more long term approach, buying property with the hope that it is a more secure place to keep their money than a savings account. The rationale behind this sort of investing is that property values can increase at a faster rate than savings in a bank account can accrue interest - plus you have the added benefit of having somewhere to live, until you decide to sell. 

Like all types of investing, property investment, is all about balancing your appetite for risk with your financial aims. In particular, how you decide to invest will depend upon how much money you have available to start with, and how much you can afford to spend each month. 

Property investment involves a number of ongoing costs: from monthly mortgage repayments, to safety standards upgrades, to renovations & maintenance costs. Before you take the leap, it's important to make sure you're fully informed about what you're getting into. 

If you're unsure if property investment - or buying a new build - is right for you, we'd recommend talking to an independent financial advisor. They'll be able to provide advice specifically tailored to your circumstances and aims. 

## Things to consider when investing in property 
Inevitably, the most important thing when it comes to investing, is finance.

The ultimate aim of investing is to - hopefully - make money, and the way you should approach investing in property is the same. For example, instead of thinking about which property would make the best home, a property investor might consider: 

* Would someone want to rent this property? And if so how much would they realistically pay each month?
* Is there scope to improve the value of this property, through home improvements, renovations, or an extension?
* Is this type of property likely to be in demand in the future?

All of these questions are ways of figuring out the answer to the real financial question at the heart of the investment: 'am I likely to make more money from this investment than I have to put in?'

However, with property investing it's not just as simple as 'spend less than you get out. Because property is very much a tangible asset, there are plenty of other things to consider too. 

* **The area is just as important as the property you're buying**

When you're weighing up where to buy, think about the wider area: is there demand for homes here? Are there lots of renters? What are it's future prospects? For example, areas that are going to be near large infrastructure projects - such as Crossrail - generally see a rise in demand and value. On the other hand, homes in more rural areas, further away from centres of employment and activity, tend to be harder to find tenants for, even if they're technically worth more. 

If you want to find out more about what's happening in a particular area, or are interested in tracking house price trends at a local level, [head here](https://www.getagent.co.uk/house-prices). 

* **You may not always be able to find tenants** 

If you're buying a property to rent out (as many investors buying new builds do) it's important to consider what you'll do in periods when you can't find tenants. Think about whether you'll still be able to afford your monthly mortgage repayments, and consider setting aside a contingency fund. 

* **The realities of being a landlord** 

Until you become a landlord for the first time, it's hard to get a sense of the level of responsibility you're taking on. Part and parcel of this investment strategy is a requirement to be on hand 24/7 to resolve any problems tenants might have, and to ensure you keep your home up to any relevant legal standards eg. minimum energy standards. On top of this, you'll need to be able to pay for any unexpected emergencies - like broken boilers - at very short notice.  Luckily there are ways to reduce this burden, for example: management companies can take on the day-to-day responsibilities of being a landlord, for a share of your rental income. 

* **Mortgage options**

If you're looking to use a buy-to-let mortgage, you'll usually require a larger deposit (generally at least 25%) to qualify. You'll also have to provide evidence that your rental income will be higher than your monthly mortgage repayments. 

* **Property values change** 

Like with any investment there is a risk that the value of your asset will go up as well as down. Although there has been a positive trajectory to house prices for the past decade, this hasn't always been a steady journey upwards. For example, house values saw a decline in 2008 and 2009 as a result of the financial crisis. In some areas of the North East, for example, property values have only just begun to reach their pre-crash heights. 

If you take a long term strategy with property you'll generally be able to ride out the bumps in value, but, like with other investments, there's risk you'll end up losing money. 

* **Rental values change** 

Like property values, rental values also change, and tend to be more volatile than the sales market. It can take just one large development, some purpose built student accommodation, or a new working trend, to rapidly reduce the demand for rental properties in an area, and forcing local landlords to lower their prices. 

This effect has been seen most recently in the fall in rental demand for city centre properties during the coronavirus pandemic. As many people's priorities changed, and working from home became much more common, demand for smaller, centrally-located rentals was overtaken by demand for larger properties with gardens and home offices. As a result rental prices in city centre locations, like central London, had to drop in order to attract tenants. 

* **You may not be able to access your money quickly** 

Unlike withdrawing money from a savings account, it takes time to release equity from a property - particularly if you need to sell. 

* **It can cost money to release equity**

Selling a house isn't free, you'll have to consider estate agent fees, capital gains tax, and legal costs - at a minimum. There are costs to equity release and renting out too (for example: marketing & maintenance costs). 

## Pros of investing in a new build home 

When it comes to investing in property for the first time, many people are attracted to new builds. 

In part this is because new build homes come with particular benefits that make them a good investment, and in part because the actual process of buying a new build can be easier logistically. 

Many people see new builds as a good investment because they're:

* **Chain free** 

Because new build properties are sold directly by the developer or house builder, you don't need to worry about property chains. 'Chain free' property transactions tend to be quicker, and are less at risk of falling through because they don't rely on other people getting mortgage approval, or selling their home first. 

[Read more about how to manage a property chain here.](https://www.getagent.co.uk/blog/first-time-sellers/how-to-manage-property-chain) 

* **Move-in ready**

One of the most commonly cited benefits of new builds is that they come 'move-in ready'. Not only will no one have lived in the house before, but there'll be no maintenance or renovation work to make the house ready for you - or tenants - to move into. On top of this, some developers even offer furnishing packages, which can be particularly handy if you're thinking of renting the property out. 

* **Customisable** 

Because new builds are often in the process of being built when you put in an offer, you can sometimes work with a house builder to customise elements of the property. These can include things like the layout, or specific fixtures and fittings. The earlier you approach the developer in the building process, the more you're likely to be able to make changes. 

* **New build homes tend to be more energy efficient** 

EPC data shows that 80% of new builds have the top energy efficiency rating (A or B). This means they are very likely to meet the minimum energy standards required for private rental properties (so you won't have to make expensive upgrades - like installing double glazing, or a new boiler - before finding tenants). 

* **NHBC 10 year warranty** 

The NHBC warranty is an insurance policy that comes as standard with many new builds. The policy covers your deposit (up to 10%) in the period before the property is fully built, and then any problems with the builder's work once you move in. For the first two years NHBC will also act as a mediator if any disputes do arise about faults with the building work. 

[Read more about the NHBC warranty here.](https://www.getagent.co.uk/blog/diy/how-to-add-value-to-a-new-build) 

* **Low maintenance costs** 

Because the building is new, maintenance costs in the first few years of owning a new build are generally very low. This is a particular perk for buy-to-let investors, who are obligated to keep their homes in a certain standard of repair for renters. 

* **Developer incentives** 

Many developers and house builders use incentives to encourage buyers to purchase new builds. These include things like offering to pay your stamp duty or legal fees, or discounts if you fulfil certain criteria, such as being a care worker, or in the army. 

## Cons of investing in a new build property 

However, new builds aren't right for everyone, and there are several things that can put investors off. These cons include:

* **New build premium** 

According to the latest Land Registry data, the average price of a new-build property in the UK is: £302,956. This is almost £50,000 more than the average price of an 'existing' property (£247,471). 

Unfortunately once you move into your new build property it's no longer seen as a 'new build' and will therefore likely lose some of its original value. This means that buying a new build should be part of a long term strategy. This will help you ride out any 'loss' in value as house prices increase. 

[Curious about how much a property is worth? Check for free, with our online valuation tool. Try it now.](https://www.getagent.co.uk/online-valuation)

* **Waiting for construction** 

Purchasing a property before it's been built always comes with risks. According to the New Homes Review, 37% of new build homes are not completed on time. And, there's always the chance that a developer could run out of money mid-project. While the NHBC Warranty can provide financial support in these situations, it's important to consider whether you're ready to take on this level of risk.  

Fortunately there are many reputable and well-funded developers operating in the UK, and while you can never know for sure how an individual project will go, a bit of research can drastically reduce your chances of ending up in this sort of stressful situation. 

* **Recurring charges**

If you buy a new build on a leasehold basis, it's fairly common for your lease to include some annual charges, such as a service charge, or ground rent. These charges are designed to go towards the maintenance of the building and communal areas. However, it's important to make sure you can afford to pay these fees on top of your mortgage repayments.

* **Smaller** 

According to research by LABC, homes built in 2010 onwards are over 4m2 smaller than homes built in the decade before. This means that: not only are new builds more expensive than existing properties, you're also paying more per square metre. After a few years of renting out a small new build, you may find that it is no longer as appealing to tenants as it was when it was brand new.

* **Snagging issues** 

According to the New Homes Review - who ran an independent survey in 2018 - 91% of new home buyers experienced 'snags' or defects with their new build home. The most common complaints were very small, such as: sticking doors, and fences that are not quite straight. However these issues still take time and money to resolve, and can be annoying if you were expecting a house that's 'move in ready'. To prevent issues like this causing a problem, it's a good idea to get a snagging survey done before completion. This is a quick, non-intrusive survey that takes place once the building has been finished, and picks up any small 'snags' or defects with the building work. 

[For more information on surveys, head here.](https://www.getagent.co.uk/blog/properties/house-survey-costs-types) 

* **Limited scope for improvements** 

While a new build might be a sensible choice for a buy-to-let investor, if you're looking to make a profit in other ways, a new build is unlikely to be the best choice. New build properties are generally built as part of a big development, with developers trying to make the most profit they can from the land. This means they often build the properties to the maximum size possible. And, because the property is likely fitted with all the latest modcons, large scale internal renovations like redoing the kitchen will probably cost you more than you'll make back. 

This doesn't mean there are no ways to add value to new builds. [We cover the best ways here.](https://www.getagent.co.uk/blog/diy/how-to-add-value-to-a-new-build) 

* **Limited scope for price negotiation** 

Although many developers offer incentives, it is often more difficult to negotiate on the actual asking price for a new build. Before you commit, decide whether the incentives are enough to make buying a new build a good deal for you, or whether you might be better off negotiating a lower price on an existing property, and using the difference to improve it. 

[Read more about the pros and cons of buying a new build here.](https://www.getagent.co.uk/blog/diy/how-to-add-value-to-a-new-build) 

## So, is buying a new build a good investment?

Whether buying a new build property is a good investment, or not, will depend on your personal situation, your financial aims, and the types of investing you're interested in. 

On the one hand, new build homes can make good buy-to-let investments. Not only are new builds generally part of big developments in key locations, they're move in ready, and require much less maintenance in the first few years than older properties. This means they're cheaper to manage, and often quite attractive to tenants too. 

On the other hand, a new build property should be considered a long term investment. The premium price attached to new build homes means you're unlikely to make a profit if you plan to sell it on very quickly. 

On top of this, new builds aren't great investments for those looking to make a profit through improvements and extensions. If you're interesting in investing in property for this reason, you'd be better served looking for an older property - or a piece of land. 

view of pale newly built block of flats against a blue sky

new-build-good-investment

New builds are an enticing option. But, investing in new build properties isn't for everyone. The pros & cons of new build homes, and things to consider before investing. 

New build property investment | Are new builds a good investment?

For many people new builds are an enticing option. But, investing in new build properties isn't for everyone. We look at the things you should consider before investing in property generally, and the pros and cons of new builds specifically. 

Is buying a new build a good investment?

Like many aspects of buying a home, the process of putting an offer on a house is slightly different in Scotland than it is in other parts of the UK.

In this article we take a look at all the things you need to have in place before you try and make an offer. We'll also share some tips on how to improve your chances of having your offer accepted.

Although there's a fair bit of jargon to get your head around, taking the first step to securing your dream home doesn't need to be difficult.

## How to make an offer on a house in Scotland

Unlike making an offer in England, there are a number of steps you have to take before you can put an offer on a property in Scotland.

The process generally follows this timeline:

#### 1. Arrange a mortgage in principle

A [mortgage in principle](https://www.getagent.co.uk/blog/buying/mortgage-agreement-in-principle "Mortgage agreement in principle") is a letter from a mortgage lender stating that they are happy to lend money to you (if a property meets the correct criteria) along with an estimation of how much you could, in theory, afford to borrow. 

Arranging a mortgage in principle demonstrates to sellers that you've considered your financial situation, and shows how much you can afford to spend. Many sellers won't consider offers from buyers who can't show they are in the financial position to proceed.

If you don't need a mortgage, you'll need to be able to demonstrate that you have the cash available to purchase the property outright (plus any additional fees like LBTT).

#### 2. Find a property you like

Once you know how much you can spend, you can start the fun part: finding your dream home. 

Most people start their search on online property portals, or by talking to local estate agents. Signing up for alerts from a few different local estate agents will help you get the first look at new-to-market properties.

#### 3. Choose your conveyancer or solicitor

It's at this point you should consider **hiring a solicitor or conveyancer** if you haven't already. You'll need a solicitor if you plan on making an offer, and finding someone you want to work with early in the process will save you rushing at the last minute. 

It's worth shopping round for the best conveyancer you can - they will be your negotiating representative, and are vital to ensuring your sale goes ahead smoothly.

#### 4. Examine the home report

Once you've found a home you like, request a [home report](https://www.getagent.co.uk/blog/first-time-sellers/home-report-scotland) from the estate agent. This includes a single property survey, a mortgage valuation and an EPC. The survey can be a simple report, a more detailed survey report, or an extensive building survey. 

Look through the results with your conveyancer. Pay particular attention to the results of the property survey, which will give you insight into the condition of the property, and the property valuation.

#### 5. Arrange property searches

If you're happy with everything in the home report, you can now arrange searches on the property. 

Searches are investigations into the property and the local area. These will provide information about the land the building sits on, and any local developments you might want to be aware of. For example, a search will let you know how at risk a property is of flooding, or if there are plans to build a motorway near the house.

You can do searches _after_ submitting an offer, to avoid paying the fee. However, this can make your offer less appealing to the seller, particularly if there are other buyers interested. Ask your conveyancer for their advice before deciding.

#### 6. Submit a 'note of interest'

If you're happy with everything you've seen so far, now's the time to note your interest. 

A note of interest doesn't tie you into buying the property. It's simply a letter to the seller's solicitor saying that you'd like to be kept up to date with any developments related to the property, such as the setting of a 'closing date' (the deadline for sending formal offers). 

This letter will be submitted by your conveyancer. At this point the seller's solicitor might let you know how many other notes of interest the property has received.

#### 7. Confirm your finances

Once you've expressed your interest, it's time to **confirm your finances**. Your mortgage provider will want to know that the house you want to buy is worth the amount you need to borrow. Your lender may use the valuation provided in the home report, or they may request a simple mortgage valuation report.

#### 8. Make your official offer

Once you've confirmed that you'll be able to borrow the money you need, you can place an offer. In Scotland, rather than calling the estate agent, your solicitor will **write an offer letter to the seller's solicitor**. 

If a closing date has been specified, the seller's solicitor will open all the offer letters on the specified day. You should expect to receive a response shortly after.

[Read more about moving home in Scotland, here.](https://www.getagent.co.uk/blog/first-time-sellers/home-selling-in-scotland)

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## What should your offer include?

Submitting your offer isn't as simple as telling the seller how much you're willing to pay. Your conveyancer will need to send a formal letter, including the following details:

* **Property description**

It's important to include a specific description of the property you want to buy. This should include the address, and a few basic details about the house. Your conveyancer will be able to help with how specific you need to be.

* **Offer amount**

This is the amount you are offering to pay for the house, and should not include your offer for any extras that you might want included, such as particular fixtures or white goods.

* **Proposed date of entry**

The date of entry is the day that you'd like to transfer the money to the seller, and pick up the keys.

* **Extras**

In this separate section, you can detail which additional fixtures and fittings you'd like to be included in the sale, and what you're willing to offer for them.

* **Conditions of sale**

Conditions of sale are legal caveats that will protect you during the purchase process. These will include things like: ensuring the seller is legally allowed to sell the property, or checking that there aren't any restrictions on the title deed. If these conditions aren't fulfilled, you will be allowed to withdraw your offer without any penalties.

* **Deadline for acceptance**

This is the date by which the buyer has to decide whether to accept or reject your offer. Often if a 'closing date' is set, you will find out whether your offer has been accepted or rejected on this day. If no closing date is set, the seller will need to respond by the deadline set in your offer letter.

If your offer is accepted, the seller's conveyancer will reply with a letter of either 'qualified' or 'unqualified' acceptance. 'Qualified' acceptance means your offer has been provisionally accepted subject to some additional conditions. An 'unqualified' acceptance means your offer has been accepted as you presented it, with no extra conditions.

## Do you need a solicitor to make an offer on a property in Scotland?

Yes, in Scotland, you have to have a solicitor in order to make an offer on a house. This is because your offer letter is technically the first of the missives that will eventually form the final contract of sale.

Verbal or informal offers sent directly from a buyer to a seller are very unlikely to be taken seriously.

![Making an offer on a house: Scotland](//images.ctfassets.net/us6n8ous4bz0/4wl25Mx6sodejcGKI1ytxV/64a090b210b5f81c25b113d7d536f1eb/making-offer-house-scotland.jpg)

## Is an offer on a house legally binding in Scotland?

No, an offer in Scotland isn't a legally binding contract.

A property purchase in Scotland only becomes binding with the **conclusion of missives**. Missives are letters between your conveyancer and the seller's conveyancer, in which they negotiate the conditions of the property purchase.

Your formal offer is technically the first 'missive'. While on it's own, it is not legally binding, it can quickly become so. If the seller's solicitor responds with an 'unqualified acceptance', agreeing to all the terms that you've laid out in your offer letter, the purchase will become legally binding. At this point there will be financial penalties for withdrawing.

Therefore, you should only make an offer if you are prepared to be legally tied into the sale very quickly.

If you're interested in buying a house, but are not 100% sure that you're ready to make an offer, remember you can also submit a 'note of interest'. Noting your interest _does not_ oblige you to make a formal offer, however, you will be kept up to date with any developments relating to the property sale, including interest from other buyers. This should give you time to decide whether putting in an offer is right for you, before you commit.

### How much should you offer on a property marketed as 'offers over'?

In Scotland, it's very common for a property seller to ask for **offers over a certain asking price**.

Usually, properties will be priced competitively in order to attract interest from a number of buyers. Then the seller will set a 'closing date' by which all the interested buyers have to submit their best and final bids. These bids are normally sealed, so you won't know how much the other buyers are offering. This can lead to buyers making offers that are much higher than the asking price.

Before you submit your sealed bid, look through the valuation included in the home report carefully. Your mortgage lender is unlikely to allow you to borrow more than this amount - if you decide to offer over the valuation amount, you'll need to make up the difference. 

You may also want to consider the condition of the property and the potential costs of repairs. If you're unsure how much these things will cost to take care of, request some estimates from independent trades people in the area.

It can also be helpful to look at property market trends in the local area. How much have recent similar properties sold for? How long did it take for other properties on the market to sell? This information can help to give you a general sense of what is a reasonable amount to offer.

You could also use an online valuation tool to get a quick estimate of how much the property is worth. Our [free Valuation Tool](https://www.getagent.co.uk/online-valuation) combines data about recently sold properties in your area with information you input about the condition and unique features of the property. Combined with the home report valuation, and your mortgage lender's limitations, this estimate will give you a sense of how much is reasonable to offer. [Check it out here.](https://www.getagent.co.uk/online-valuation)

**Top tip:** If no closing date has been specified on a property that is soliciting 'offers over', this could mean that nobody else has noted their interest. In this case you may be able to negotiate a lower purchase price with the seller.

#### What does 'fixed price' mean?

If a property is marketed as 'fixed price', this means the buyer will sell the property to the first person who offers the asking price.

In practice, it's actually slightly more complicated. The seller is **not legally obligated** to sell to the first person to offer the full asking price. They may also take into account other things, like a buyer's financial position, or their requested 'date of entry'. 

A first time buyer without a chain, who's able to move in quickly, is likely to be much more appealing to a seller than someone who needs to sell their current home before they can move.

If you're unsure how much you should offer, ask your solicitor for advice. They'll be able to provide support based on your personal financial situation.

## How important is the 'date of entry'?

The **date of entry** is the day that the money is transferred to the seller, and you can pick up the keys to your new home.

How important this is to having your offer accepted will depend on the seller's personal situation. Some sellers will be keen to move on a particular day - perhaps they're starting a new job, or they're part of a chain and need to sell before they can purchase their next house.

If you're able to be flexible with the move date, talk to the estate agent about the seller's situation, and ask whether they're after anything in particular. Being able to compromise on the date of entry can make you a more attractive buyer and help your offer get accepted.

A family sat on a bed laugh and hug while looking at a laptop

making-an-offer-on-a-house-scotland

In this article we take a look at all the things you need to have in place before you try and make an offer on a house in Scotland. We'll also share some tips on how to improve your chances of having your offer accepted. 

Making an offer on a house: Scotland | GetAgent

Making an offer on a house: Scotland

If you're buying a property for the first time, the whole process can seem pretty overwhelming. 

Should you be offering the asking price, or can you suggest a lower price? Can you just tell the seller you want to buy their house or do you have to talk to their lawyer?

In this article we take a look at the process of making an offer on a property, and share some advice on how to get the best deal for your house purchase.

### What's the process for making an offer on a house?

With a bit of preparation the process of making an offer doesn't have to be difficult. There are a few basic steps to follow:

* **Before you start making offers** 

Before you make your offer, there are a few things you need to ensure you've done first. Most importantly, you'll need to figure out your finances. 

Most estate agents will ask for 'proof of funds' on receipt of your offer. This proves you are a serious buyer, and prevents people making an offer on a house they can't actually afford.

You can provide proof of funds in the form of a 'mortgage in principle' letter from your bank, or a bank statement. A mortgage agreement in principle isn't an official mortgage approval (which depends upon a lender's valuation of a property), but does provide proof that the mortgage provider is willing to lend to you. If you know that you'll need to get a mortgage, make sure you apply for a mortgage in principle soon after you start your property search. This will help avoid delays once you find a property you want to buy.

It can also be pretty handy to know which conveyancer you want to work with before making an offer. This will allow you to move quickly if your offer is accepted, and can be appealing to sellers. 

* **Make your offer** 

Once you have your proof of funds in place, and have found your dream home, it's time to make your offer. 

First, you'll need to phone or meet with the estate agent representing the seller. You can then submit an offer to them verbally.

It's likely that the estate agent will ask for some further information, such as your 'position' (how soon you can move, how you are financing the sale, whether you need to sell a property before you can buy). They'll also ask for some personal information such as copies of your ID, and the contact information for your conveyancer.

* **Follow up with an offer in writing**

After you've made your offer verbally, make sure you follow up by submitting your offer in writing or over email. This creates a written record of your offer, and everything you've discussed with the estate agent. This will ensure that there are no crossed wires when the estate agent relays your offer to the home seller. 

At this stage it's a good idea to make sure the agent is clear that the offer is 'subject to survey'. This means you'll be able to renegotiate or withdraw your offer should any major issues come up in the survey. It can also be useful to ask the estate agent to draw up a list of all the fixtures and fittings that will be included in the purchase price, so that you have a written record of *exactly* what's on the table. 

* **Offer passed on to the seller**

Once you've submitted your offer formally, the estate agent will pass your proposal to the property owner. They'll discuss whether the amount you want to pay meets the seller's expectations, and about your position as a buyer. If there are other interested buyers, they'll also compare your offer to the others they've received.

* **Response**

The seller will probably take some time to think everything through, but should respond within a couple of days. They will either: accept your offer, reject your offer, or propose a counter offer. If your offer is accepted you will progress to the conveyancing stage. If your offer is rejected or countered, you can either walkaway, or attempt to negotiate.

**Tip:** If your first offer isn't accepted, ask the estate agent for feedback. They should be able to tell you why the seller rejected your proposed amount, if they've received a higher offer, or are worried about your chain situation. They might even let you know how much you would need to increase your offer by.

* **Negotiation**

If you decide you want to make a counter offer you will negotiate the details with the seller's estate agent until you find an amount that you both agree upon, or you can walk away. If you're uncomfortable negotiating with an agent, it is possible to hire a buyer's agent to represent you - but they will charge a fee.

* **Offer Accepted**

If negotiations go well your offer will be accepted. At this point your legal representatives will get to work drawing up a contract.

**Tip:** Once your offer has been accepted, request that the property is taken off the market straight away. Your offer is not legally binding until a contract has been signed. Removing the property from the market will reduce the chance of another buyer offering a higher price and [gazumping](https://www.getagent.co.uk/blog/first-time-sellers/gazumping) you.

[Read more about what happens once your offer has been accepted](https://www.getagent.co.uk/blog/conveyancing/how-long-to-buy-house)

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### Is it better to offer below the asking price?

When you're thinking about putting in an offer on a property, it can be difficult to weigh up offering too much to avoid being rejected, versus offering too little money and risking losing the property to another buyer.

The best way to approach the problem is to thoroughly research: the local market, the value of the property you're hoping to buy, and the seller's personal situation.

Take these questions as a starting point:

* **How many other buyers are interested?**

If there's a lot of competition for the property, it's likely that the seller won't accept a lower offer on their home. However, if you're the only buyer that has expressed interest, you might find that the buyer will be willing to accept less money.

* **How many other similar properties are available?**

If there are lots of similar properties on the market the competition for this particular house will be less intense than if it's a one of a kind dream home. When there's lots of competition, buyers tend to offer more.

* **How much have other similar properties sold for recently?**

The recent sold prices of other local properties can be a good indicator of the amount you should offer. If these houses have sold for significantly less than the seller is asking for, it's likely you can propose a lower amount too. On the other hand, if they consistently sell for more, the property is probably undervalued. In this case you might consider offering slightly more to beat any other interested buyers.

[Curious about how much a property is worth? Our free, online valuation tool uses local market data can provide you with a quick estimate. Try it now.](https://www.getagent.co.uk/online-valuation)

* **How much do you want this particular property?**

If you've fallen in love with a particular property, or haven't found any others that satisfy all the things you need from your new home, you might decide to offer slightly more so that you don't risk losing the property.

* **What other costs will there be?**

Buying a house costs more than just the price of the property. You will also need to factor in legal costs, stamp duty land tax, survey costs, removal costs, and any maintenance or furnishing you want to do once you move in. If you're moving to a bigger property you may also find your recurring costs - such as utilities, council tax, and service charges - increase too. Take this into account when figuring out how much you can afford to spend on the purchase, and running of your new home.

* **What can you afford?**

It's incredibly important that you do not spend more than your allocated budget - regardless of how much you love a house. The continuing financial implications of buying a home for more than you can afford can last for several years in the form of: unaffordable monthly mortgage repayments, maintenance costs, or lack of savings for emergencies.

* **What is the seller's position?**

If the seller needs to move quickly they will usually be more likely to accept a lower offer. 

You might also find that a seller will favour chain free, or cash buyers over others, even if their offer is lower. Chain free and cash buyers are able to move more quickly, and pose [less risk of falling through](https://www.getagent.co.uk/blog/selling-tips/house-sale-fallen-through) than those in long chains. So, if you're a first time buyer, for example, you're in a particularly strong position.

As a general rule of thumb, in England and Wales it is acceptable to offer around 5-10% less than a property's asking price. In [Scotland](https://www.getagent.co.uk/blog/first-time-sellers/home-selling-in-scotland) the etiquette is slightly different, and many estate agents will request 'OIEO' (or 'offers in excess of') a certain price.

You're more likely to have a low offer accepted if:

* The property has been on the market for a long time

* The seller has already had to reduce the price to attract interest

* The seller is keen to move quickly (for example, they're part of a chain, or they need to move for work.)

* There's no competition from other buyers

* You're a first time, chain free, or cash buyer

### Can you make an offer on a house that's already 'under offer'?

Yes. It is possible to make an offer on a house that's already marked as 'under offer'. Offers can be received right up until the moment the seller has signed a contract, and the buyer has paid their deposit. 

In fact, estate agents are [legally obligated to put forward all offers they receive](https://www.getagent.co.uk/blog/estate-agents/estate-agents-lie-offers), at any point in the sales process, however ridiculous, cheeky, or last minute. This means even if the buyer has informally accepted an offer you still have a chance.

However if you plan to put in an offer at the last minute, it's likely that you'll have to make it very attractive for the seller. You'll have to be willing to pay more than the accepted offer, or be in a substantially better position than the current buyer (eg. a completely chain free, cash buyer).

### Does it cost money to make an offer on a home?

No, it doesn't cost anything to put in an offer on a property.

You may be asked to pay a holding deposit, but it's not compulsory to do so. Usually you'll only be asked to do this in a particularly volatile or competitive market, to prove that you're a serious buyer. 

There are a few different types of holding deposit so make sure to check the terms before you agree. For example: you should never give a holding deposit directly to a seller. All money should be handled by their conveyancer or solicitor. 

Although you won't have to pay a fee to submit an offer on a property, you must be prepared to pay all of the additional costs that come with buying a house if your offer is accepted. 

Put aside some money for: legal fees, mortgage arrangement fees, survey costs, stamp duty land tax, removals costs, along with any maintenance or furnishing you hope to do once you move. If you are selling your home too, you'll also need to budget for the associated costs - such as [estate agent fees](https://www.getagent.co.uk/estate-agent-fees).

Once you have signed a contract, or 'exchanged', you will be legally obligated to go through with the home purchase. It can be incredibly expensive and stressful trying to withdraw from a sale after this point.

### How to improve the chances of having your offer accepted

It can be pretty nerve-wracking making an offer on a house you love. Luckily, there are a few things you can do to increase the chance the seller will accept it: 

* **Think about seller's position**

It goes without saying that an offer will be more appealing if it ticks as many boxes as possible for the seller. Doing a bit of research into what they're looking for can go a long way. How soon are they looking to sell? Can you be flexible with the completion date to fit their schedule? How long have they been on the market? If the property has been online for a long time, a seller might be more inclined to consider less than the asking price. 

* **Prove you're the best buyer** 

Remember, your offer isn't all about the money. It's worth advocating for yourself in both financial and logistical terms. For example, demonstrating that you're ready to move quickly by having a mortgage in principle in place, and a conveyancing firm ready to go, will show you're a serious buyer that won't cause delays. If you're a first time buyer make sure to flaunt it. 

* **Do your research**

Researching the property and the local area will also improve your chances of having your offer accepted. You can use the information you find about house prices nearby, and potential new developments that could impact the property (such as a new motorway, or skyscraper) to justify why you are offering the amount you are. This demonstrates that you've fully considered the true value of the property - rather than arbitrarily offering a percentage below the asking price. 

* **Remember the estate agent works for the seller**

Although it's tempting to discuss your plans with the agent working on the property, remember that they're ultimately working to get the best price for the seller. For example, telling an agent that your first offer isn't the highest you can pay, will simply lead to the agent advising the buyer to hold out for a higher offer from you. 

* **Politeness goes a long way**

Negotiating on a property is a delicate piece of diplomacy - and an offer is just the start of the process. Being prepared with all the information upfront, remaining calm if your first offer isn't accepted, and discussing in detail how you could reach an agreement will make you stand out. If the seller sees that you're a dependable and organised buyer, they'll be reassured that the conveyancing process will also go smoothly. 

A couple reading to a young child sat on mother's knee 

how-to-make-offer-on-house.jpg

 In this article we take a look at the process of making an offer on a property, and share some advice on how to get the best deal for your house purchase.

How to make an offer on a house | Making an offer in 2021

We take a look at the process of making an offer on a property, and share some advice on how to get the best deal for your house purchase.

How to make an offer on a house

Every year, thousands of people buy their first home in the UK. With so many people taking their steps on the property ladder, you'd think the process is simple. 

Unfortunately, buying a house can be both complex and expensive. Thankfully, there’s enough research into the costs involved to make things a little easier for newcomers.

In this guide, we explore the different ongoing costs associated with buying a house. Costs are examined chronologically in the order of which you pay them.

## How much money do you need to buy a house in the UK?

As of May 2023, you need at least **£34,079.10** to buy a property with a purchase price of **£285,861** according to HM Land Registry.

## What are the main costs?

Purchasing a house involves various expenses that hinge on the kind of buyer you are. You don't have to stress about estate agent fees, but there are key costs that everyone planning to own a home should be ready for. Check out the info below for a clearer view.

#### Essential costs

| Type of cost         | Average cost     | Notes           |
| -------------------- | ---------------- | --------------- |
| Conveyancing         | £1500            | £1500 - £2000   |
| Mortgage valuation   | £200             |                 |
| Mortgage arrangement | £1000            | £1000 - £2000   |
| Mortgage deposit     | £28,586.10 (10%) | 10% of £285,861 |
| Stamp Duty (SDLT)    | £1793            | 5% of £35,860   |
| Total                | £34,079.10       |                 |

#### Optional costs

| Type of cost        | Average cost  | Notes                    |
| ------------------- | ------------- | ------------------------ |
| Financial advisor   | £150 per hour |                          |
| Mortgage broker     | £1,672.78     | 0.65% of the loan amount |
| Property surveys    | >>£200        | Dependent on property    |
| Buildings insurance | £130          | Rates fluctuate          |
| Total               | £2152.78      |                          |

#### Conditional costs

| Type of cost            | Average cost | Notes                                        |
| ----------------------- | ------------ | -------------------------------------------- |
| Mortgage exit fees      | £150         | Often £50 - £300                             |
| Early repayment charges | Fixed        | 5% to 10% of remaining mortgage              |
| Removals                | £175 per day | Rates vary regionally                        |
| Storage (London)        | £674.40      | 100 sq feet for 3 months (Via YellowStorage) |
| Storage (Manchester)    | £460.80      | 100 sq feet for 3 months (Via YellowStorage) |

## Essential costs

#### 1. Conveyancing fees

Once a vendor accepts your offer, you need a [conveyancing solicitor](https://www.getagent.co.uk/blog/conveyancing/what-is-conveyancing# "What is a conveyancer?") (or conveyancer) to take care of the legal side of the transaction. 

Conveyancers are essential for both buyers and sellers in property transactions. The work they do helps make a property purchase legally binding.

**How much does conveyancing cost?**

On average, if you’re buying a house, solicitors should cost around **£1500 to £2000** in solicitor fees, while disbursements could take the figure even higher.

[Legal fees](https://www.getagent.co.uk/blog/conveyancing/conveyancing-fees "Conveyancing fees") for buying property are generally more expensive than those for selling. Buying property involves more legal and administrational work for the conveyancer. As a result, fees are more expensive, and disbursements (expenses paid by the conveyancer or solicitor on your behalf) are greater in number.

**What do conveyancers do?**

Conveyancing solicitors handle all the legal aspects of property transactions, including:

* Property searches
* Transferring the mortgage deposit
* Exchanging contracts
* Confirming the completion date
* Receiving and transferring the property purchase amount
* Registering your ownership with Land Registry
* Paying Stamp Duty Land Tax (SDLT)
* Paying all expenses associated with buying (Disbursements)

All of these things make solicitors vital to all property purchases. They, along with a seller’s estate agent, act as a go-between you and the seller, who you'll likely never meet.

#### 2. Disbursements

While some disbursements can be classified as optional and conditional expenses, it’s likely you’ll have to pay the bulk of these expenses.

| Disbursement                | Cost        | Average |
| --------------------------- | ----------- | ------- |
| Local authority search      | £40 - £250  | £120    |
| Drainage search             | £35 - £50   | £42.50  |
| Environmental report        | £36 - £42   | £39     |
| Chancel repair              | £12         | £12     |
| Bankruptcy                  | £2  - £3    | £2.50   |
| Land charges                | £6 - £10    | £8      |
| Anti-money laundering       | £6 - £25    | £13.99  |
| Mortgage supplement         | £100 - £195 | £132    |
| Leasehold supplement        | £100 - £250 | £163    |
| Bank transfer               | £25 - £50   | £37.50  |
| SDLT                        | £60 - £80   | £70     |
| Lifetime or Help to Buy ISA | £50         | £50     |
| Help to Buy Loan            | £200 - £300 | £250    |

#### 3. Mortgage valuation fees

Once your offer has been accepted, and you’ve found a deal you like, your mortgage lender will send an expert to evaluate the property. This is what’s known as a ‘mortgage valuation’. 

Lenders order valuations to ascertain whether the property actually meets their mortgage guidelines. If the valuer deems that the property is worth less than what you applied for, the lender will either reject your application, or alter their conditions.

As mortgages are an essential part of most property transactions in the UK, a mortgage valuation is an essential fee.

**How much does a mortgage valuation cost?**

Based on our research, the average mortgage valuation fee for a £285,861 property should come in at **£200 - £400.** However, rates may vary depending on the price of your property and the mortgage deal you choose.

#### 4. Mortgage arrangement fees

Mortgage arrangement fees are fees charged by the mortgage lender for setting up the mortgage loan itself. These fees cover administrative costs related to processing the mortgage application, conducting credit checks, and other tasks associated with finalising the mortgage agreement.

**How much do mortgage arrangement fees cost?**

On average, for a property priced at £285,861, you can expect a mortgage arrangement fee of **£1000**.

However, arrangement fees for standard residential mortgages could be from £0 to £2,000. However, it's important to note that some mortgages might have no arrangement fees, while others might have higher fees associated with special features or lower interest rates.

#### 5. Mortgage deposit

A mortgage deposit, or house deposit, is a percentage of the property's purchase price your lender wants paid upfront. The rest of the property will be paid for by the lender, and will make up the total mortgage.

**How much does a mortgage deposit cost?**

For a property priced at £285,861, a deposit priced at 10% of the property's value would be **£28,586.10**

Of all mortgage fees, your deposit is the most expensive. A deposit is usually 10 - 20% of the property’s final sale price, though this entirely depends on both your circumstances, and Loan to Value ratio (LTV). 

The more risk a lender takes on by investing in your property, the higher your LTV. This can affect the amount of the deposit your lender needs, as well as your mortgage interest rate. The higher your interest rate, the harder it gets to pay back your mortgage.

#### 6. Stamp Duty

[Stamp Duty Land Tax (SDLT) is a government tax on the purchase of land or property in England](https://www.getagent.co.uk/blog/buying/stamp-duty). In Scotland, Stamp Duty is called Land and Buildings Transaction Tax (LBT), while in Wales, it’s called Land Transaction Tax (LTT).

**How much does Stamp Duty cost?**

Stamp Duty is a proportional tax, which means you need to pay a percentage that increases with the final purchase price of the property. 

If you’re a first time buyer, you don’t have to pay Stamp Duty on the portion of the property that is worth £250,000, and then **5%** on the £35,860 thereafter, which is **£1793**.

The current Stamp Duty thresholds are as follows:

| Market price          | Basic SDLT rate | Higher SDLT rate |
| --------------------- | --------------- | ---------------- |
| Up to £250,000        | 0%              | 3%               |
| £250,001 - £925,000   | 5%              | 8%               |
| £925,001 - £1,500,000 | 10%             | 13%              |
| Over £1,500,000       | 12%             | 15%              |

![House prices have risen by nearly 50% since the last Financial Crisis](//images.ctfassets.net/us6n8ous4bz0/5QnVHz9GMYJtdiGjTnY4FE/5b9b9d8e5ae5f9be616a2646649f9553/GetAgent-house-prices.jpg)

## Optional costs

#### 1. Financial advisor fees

While not essential, hiring a financial advisor can help you go a _long_ way while you save up for that house deposit, especially if you’re a first time buyer. Mortgage deposits are extremely expensive and it can take years to save up for one.

A financial advisor frames your home purchase alongside your other financial requirements, and judges how much, and how long for, you would need to save.

When you hire a financial advisor, they analyse your income, outgoings and expenses to help shape a personalised savings plan. They can also help you work out what type of property is within your budget, including its monthly mortgage repayments and taxes.

**How much do financial advisors cost?**

The average cost for a financial adviser in the UK is **£150 per hour**, although it can vary from £75 to £350 per hour, according to the Money Advice Service.

#### 2. Mortgage broker fees

Like financial advisors, mortgage brokers are not essential - nevertheless, they are a valuable asset for first time buyers. Mortgages can be extremely difficult to navigate, and if you are nervous about your first application, a broker can advise which mortgage package is likely to work best.

Like a financial advisor, mortgage brokers assess your financial situation and provide advice. Unlike financial advisors, these specialists provide advice about your mortgage options. 

Thanks to their extensive knowledge of all available mortgage packages and lenders, brokers can assess your credit report and help locate a lender that is likely to accept your application.

In some cases, mortgage hopefuls have been rejected even after an [Agreement In Principle (AIP)](https://www.getagent.co.uk/blog/buying/mortgage-agreement-in-principle "Mortgage Agreement in Principle"). In such a scenario, a broker can prove invaluable, especially if you’ve already agreed to purchase the property.

**How much do mortgage brokers cost?**

Mortgage brokers tend to charge a percentage of the total loan amount. The average mortgage broker in the UK charges **0.65%**.

#### 3. Property surveys

Before you finalise the purchase of your new home by instructing your conveyancer to exchange contracts, it's important that you first ensure your new home is both structurally sound and secure. 

Indeed, many mortgage providers require the results of a **property survey** in order for your application to move forwards.

##### What types of property surveys are there?

There are several types of surveys available for different types of properties. The most common include:

**Homebuyer’s report**

Tailored to properties less than a century old, a homebuyer’s report is a non-invasive survey that typically spans two to four hours. This comprehensive report furnishes specialised insights into issues impacting the property's value, offering estimated repair costs and guidance on continuous maintenance.

**Snagging survey**

Snagging surveys are specifically tailored for newly constructed homes, commonly referred to as 'new builds'. A property that has undergone construction, conversion, or refurbishment within the past two years falls under this classification. 

During a snagging survey, the surveyor meticulously pinpoints any incomplete elements and defects, enabling you to prompt the developer for prompt resolution.

**Structural survey**

A comprehensive structural survey is designed for notably aged or architecturally unique properties. These surveys involve an exhaustive exploration of every facet of the property.

Occasionally invasive, they involve procedures like wall drilling to assess structural integrity and the lifting of floorboards. Following completion, you will receive a comprehensive report detailing everything, including any issues that influence the property's safety and value.

**How much do property surveys cost?**

The cost of property surveys can vary significantly based on several factors, including the type of survey, the size and value of the property, the location, and the surveying company. Generally, you are looking at an expense of **£200 to £2000**.

| Survey type    | Average survey cost| Suitable for     |
| ----------------- | ------------- | -------------------------- |
| Condition Report (RICS Level 1)  | £200 - £250   | For conventional properties in good condition and less than five years old. |
| Homebuyer Report (RICS Level 2)  | £400 - £600   | For modern properties in reasonable condition.                              |
| Home Condition Survey (Sava)     | £400 - £600   | For modern properties in reasonable condition.                              |
| Structural Survey (RICS Level 3) | £1000 - £2000 | For very old, unusual or rundown properties.                                |
| Snagging Survey                  | >£300        | For new build properties.                                                   |

#### 4. Buildings insurance

Buildings insurance is a type of insurance policy that protects you from losing money if your new home is destroyed. It covers several types of damages, including:

* Fire
* Flooding
* Earthquakes
* Thefts
* Vandalism

Buildings insurance does _not_ cover damages from pests, frost and leaking gutters.

While required by most mortgage lenders, buildings insurance is not essential - but it's highly recommended.

**How much is buildings insurance?**

There isn’t a set price for this insurance policy because many firms offer different rates. Some of the most popular websites to compare quotes are [Comparethemarket.com](http://comparethemarket.com/) and [Moneysupermarket.com](http://moneysupermarket.com/).

On average however, a typical buildings insurance policy costs **£130**. However, rates may vary due to both national and regional factors.

## Conditional costs

#### 1. Mortgage exit fees

If this property purchase is your second, and you’re looking to either remortgage or exit your previous mortgage, you’ll need to pay a mortgage exit fee. If you’re still in your tie-in period, you may need to pay an early repayment charge.

**How much do mortgage exit fees cost?**

Mortgage exit fees generally cost **£150**, but can cost anywhere from £50 - £300. They are sometimes known as a ‘deed release’ or ‘final fee’.

#### 2. Early mortgage repayment charges

If this is your second property purchase, you may or may not have a mortgage left to pay off. If you’re looking to move before the end of your mortgage tie-in period, you’ll have to pay what’s called an early mortgage repayment charge.

**How much does an early mortgage repayment charge cost?**

Early repayment charges can be 5 - 10% of the remaining mortgage amount. To avoid paying the fee, make sure you remortgage after the tie-in period is complete.

#### 3. Removal fees

You may need help from a local removals company when you move home. Removal services aren’t exactly cheap, but there isn’t an alternative, especially if you’re moving into a second home and have a lot of furniture to transport.

**How much do removal companies cost?**

A typical removal company costs **£175 per day**, but rates may vary based on the size of vehicle used, distance travelled, as well as any added insurance policy.

#### 4. Storage fees

If you’ve sold your home already, or are currently renting, you’ll need somewhere to store your furnishings and items before moving day. There are several storage facilities available, with England’s most popular being Big Yellow Storage.

**How much does storage cost?**

Storage units vary in cost. We asked Big Yellow Storage on the 15th August 2023 for quotes in Manchester and London (Zone Two). We received the following for a storage room of **100 square feet** for **three months**:

* Storage (Manchester): **£460.80**
* Storage (London): **£674.40**

## Summary: The costs demystified

Hopefully, you now have a better understanding of the costs involved with buying a property in the UK. While there is room for considerable regional variation, as well as individual circumstance, you can expect to pay something within the realms of £34,079.10 for a 3-bedroom property.

For more cost crunching, check out our guides to the [costs of selling](https://www.getagent.co.uk/blog/selling-tips/house-selling-costs) and [Stamp Duty](https://www.getagent.co.uk/blog/buying/stamp-duty).

Cartoon cut out of money and credit slips.

Costs of buying a house

In this guide, we explore the different costs associated with buying a house!

The cost of buying a house | GetAgent

The cost of buying a house

Buying property involves a lot of different expenses. Conveyancing fees, Stamp Duty Land Tax and Land Registry charges are just some of the costs you can expect to pay when you buy a house. A cost that homebuyers often forget about is  house surveys. While not strictly essential, house surveys provide a great deal of information about the integrity of your prospective new home. So how much are house surveys, and are they a necessary expense?

## How much do house surveys cost?

__House surveys cost from £200 - £2000__. The price varies greatly depending on the type, location, and size of the property - as well as the level of detail you're looking for.

As a general rule, a Condition Report is the cheapest survey option, while a Structural Survey costs the most. You should expect the survey cost to fall somewhere in the following ranges, but remember that if you're buying a house that's more unusual you may have to pay more:

| Survey type                      | Survey cost   |
| -------------------------------- | ------------- |
| Condition Report (RICS Level 1)  | £200 - £250   |
| Homebuyer Report (RICS Level 2)  | £400 - £600   |
| Home Condition Survey (Sava)     | £400 - £600   |
| Structural Survey (RICS Level 3) | £1000 - £2000 |
| Snagging Survey                  | \> £300       |

### How much does each type of house survey cost?

There are [five types of house surveys available](https://www.getagent.co.uk/blog/properties/house-survey-types-which-do-you-need) for homebuyers to choose from each with different costs:

#### Condition Report (RICS Level 1) 

**Average cost**: £200 - £250

The RICS Condition Report is designed for conventional properties built from standard building materials.  

__A Condition Report (RICS Level 1) covers:__

- A summary of risks to the property
- ‘Traffic light’ ratings based on the condition of each part of the building
- Advice on planning and control, as well as replacement part guarantees

#### Homebuyer Report (RICS Level 2)

**Average cost**: £400 - £600

The Homebuyer Report is designed for modern, conventionally built properties in good condition. 

__A Homebuyer Report (RICS Level 2) covers:__

- A visual inspection of accessible areas
- A summary of any serious issues, including those affect property value

#### Home Condition Survey (Sava)

**Average cost**: >£400 - £600

Similar to a RICS Homebuyer Report, a Sava Home Condition Survey provides a brief overview of the property’s condition. This includes a rating (out of 1, 2 or 3) of the condition of each element in the property (Walls, mould). The main differences between the Sava report and the RICS report, is that the Sava version involves slightly invasive inspections. As a result, the Home Condition Survey is a little bit more expensive than the RICS Homebuyer Report.

__A Sava Home Condition Survey covers:__

- A visual inspection of areas (slightly more invasive than RICS Homebuyer)
- Ratings out of 3 based on the condition of each part of the building
- A summary of any serious issues, including those that affect property value

#### Structural Survey (RICS Level 3)

**Average cost**: £1000 - £2000

The RICS Level 3 Structural Survey is designed for old, run-down or unusual properties. It provides a detailed report with a highly thorough and invasive inspection of the property. It’s also the most expensive residential building survey available. You should expect a survey cost of around £1,000, but for larger or more unusual properties, you might find the cost is closer to £2,000. For smaller properties, fees starting at £600 are reasonable.

__A Structural Survey report (RICS Level 3) covers:__

- A thorough, invasive inspection of the property
- Condition ratings out of 3 based on seriousness of problems, with 3 meaning urgent repairs are needed.
- A detailed summary of risks to the property

 #### Snagging Survey

**Average cost**: >£300

If you're buying a house that's just been built, it may feel unnecessary to have a full investigation into the condition of the property. This is where a 'snagging survey' becomes a suitable option. Snagging surveys are specifically designed for new build properties. They cover everything from small cosmetic issues, to structural problems.  

__A Snagging Survey covers:__

- Expert commentary on the property, from the sort of walls it has, to the type of window glazing that's been used.

You can read our [full guide to the different types of house survey here](https://www.getagent.co.uk/blog/properties/house-survey-types-which-do-you-need).

## Which house survey should I choose?

You should choose your house survey based on the type of property you’re buying. You should also take into consideration the level of confidence you have in its current condition. If you’re buying a new build for example, there’s no need to pay for a full Structural Survey.

| Survey type  | When to choose this report for your property                     |
| -------------- | ----------------------------- |
| Condition Report (RICS Level 1)  | For conventional properties in good condition and less than five years old. |
| Homebuyer Report (RICS Level 2)  | For modern properties in reasonable condition.           |
| Homebuyer Report (Sava)   | For modern properties in reasonable condition.          |
| Structural Survey (RICS Level 3) | For very old, unusual or rundown properties.          |

### Who should I get my property survey from?

There’s a lot of qualified surveyors available to choose from. Our recommendation is to get quotes from two or three providers. Ask them about their specific expertise, and an outline on what you can expect from their report. This will help you get a sense of which surveyors are offering the best value for money, and who will produce the most useful report for your needs.

### Will a house survey save me money?

While a survey might seem like an extra cost you can avoid, their findings __can actually save you huge amounts of money in the long run__:

- If a survey finds large structural issues, you will be able to make a more informed decision about whether to proceed with the purchase.
- Any issues discovered can be used as a negotiating tool. If your surveyor recommends expensive repairs, you are in a good position to negotiate their costs off the property sale price.

Ultimately, a £600 survey __could potentially save you thousands__. It's worth the cost.

## Do mortgage providers require house surveys?

Most mortgage lenders do require mortgage valuation reports to be completed in order to assess a buyer’s loan application. A mortgage valuation report is not a house survey, but a quick look at a property to assess how much it’s worth. It’s required to ensure the property provides security for the loan. You will be required to pay for it. Generally, mortgage valuations cost upwards of £350 depending on the size of the property.

detail of an architectural drawing of a new home

house-survey-costs.jpg

What is a house survey, and when should you get one done? This article looks at the types, costs, and purposes of different residential surveys, and provides some top tips on finding the best surveyor for the job.

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