Inspections and Reports on Dwellings

Reporting for Buyers

Ian A. Melville, Ian A. Gordon

• Publisher: Routledge
• Year: 2016
• eBook ISBN: 9781317285663
• Edition: 2
• Topic: Technology & Engineering
• Subtopic: Construction & Architectural Engineering
• Index: Technology & Engineering

This new edition of Reporting for Buyers provides guidance for the surveyor on setting out the findings of the inspection in a clear, unambiguous and unequivocal way.

The book provides a full, critical look at the current situation, describing the various types of report currently available to the public for commissioning. The limitations and attributes of these reports are discussed and their respective forms of advice considered in detail, together with the advice provided to buyers which is a legal requirement to Scotland. The authors stress the need for Surveyors to demonstrate their all-round abilities by putting themselves in their client's shoes to provide advice appropriate to their needs and requirements.

In doing so they set out a cogent criticism of the standardised forms of advice offered to buyers and the lack of transparency in how they are presented by comparing what is seen by the client and what is set out in the various guidelines available. Surveyors will find the site notes and sample reports invaluable in demonstrating how the same dwelling can be described in the reports available. Sample reports include:

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• mortgage valuation report

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• RICS Condition Report

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• RPSA Home Condition Survey

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• Scottish Single Survey

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• and the RICS Home Buyer Report.

This book is intended for all those engaged in inspecting and reporting on dwellings, whether experienced, newly qualified or studying for appropriate qualifications to become members of professional institutions. It will also be found useful to conveyancing solicitors acting for lenders.

1

Buyers

Summary contents

Categories:

The young

The family

The elderly

Contrasted with sellers Pre-purchase budgeting Finding a dwelling:

Boards

Selling agents

Press

Websites

Agent’s particulars Information from websites:

Ownership

Planning

Amenities

Flooding risk

Radon

Magnetic fields

Pollution

Noise

Viewing:

Difficulties

Checking requirements

Which? advice

Sellers’ veracity

Energy Performance Certificate:

Construction information

Green Deal

Responsibility of seller

Making an offer Completing the purchase Buying at auction:

Auctioneers’ particulars

Bidding

Buying a new dwelling or off-plan

Buyers of dwellings tend to fall into a number of different categories, depending to a great extent on the stage of life they have reached. The young, setting out in the world, used to continue living with their parents until they got married. With good fortune, they would then buy or rent a dwelling to raise a family and would be more likely than not to continue living there even after their own children had moved on to accommodation of their choice. It might be that they would stay in the same dwelling until they could no longer look after themselves. Now, however, once in remunerative employment, the young seek their own accommodation, away from parents, perhaps sharing a flat or house with friends, until such time as settling down with husband, wife or partner, and perhaps raising a family, seems more attractive.

Having less in the way of responsibilities, the young in employment tend to be consumers on a fairly large scale, particularly of entertainment in the form of bars, clubs and restaurants. These facilities tend to be congregated in fairly defined areas, particularly, of course, in city centres, and the nearby residential accommodation within easy walking distance is very much favoured, as many of the clubs and bars open late and close in the early hours of the morning. The central location is also where public transport links are found, and, as garaging is scarce, and parking facilities are usually heavily restricted, the transport links are needed by the young to get to work, should that not already be within walking distance.

As for the accommodation, industrial and warehouse conversions are probably more suited to non-sharers. Those sharing will generally need more than one bedroom, probably with en-suite WC, basin and bath or shower facilities. Sitting at home may not feature over much in the lives of the occupants, but, even so, wiring and power outlets for the latest of in-house working facilities will be expected. Elaborate cooking arrangements do not feature high on the list of necessities, a galley kitchen often being more than enough. DIY does not feature at all, so that accommodation will need to be reasonably well decorated, with good-quality fittings and with floors requiring the minimum of maintenance. Once a long leasehold interest in a flat or even the freehold of a small house has been bought, long-term occupation is not thought of as likely, and the hope will be to sell on easily within a few years, say 3–5, to the next generation of the up and coming, at a higher price than was originally paid.

It is not too difficult to see that a dwelling in a less than ideal location, not as sensibly arranged for the active and busy, in a condition that requires something more than minimum maintenance, or accommodation that is so trendy and fashionable that it soon becomes ‘last year’s’, will have a market value somewhere down the scale of the general range of values for city-centre ‘pads’ for the single of both sexes. For the one to be valued, the first step is to list the advantages and disadvantages for comparison with those already sold, should details of a number of recent sales be available. If not, comparison will need to be made with as many as possible of recently sold flats or small houses suitable for the single and the necessary adjustments be made to the achieved sale figures to allow for the differences.

City-centre ‘pads’ along the lines of the ones described above tend to be for the bright up and coming, on good salaries and with prospects – lawyers, accountants and the like – able to save rapidly for the necessary deposit that enables purchase and thereby gaining an early foothold on the ‘property ladder’. Those a little less fortunate may need longer to save, but might still be able to borrow from parents, or even be given the deposit by them, to assist towards purchase. However, those in such circumstances will probably need to seek a small flat further afield, in a house conversion, a newly built block or a small house, old or new. Good transport facilities will still influence choice for easy access to work and sought-after entertainment. The overwhelming aim will be to gain a foothold on the property ladder as soon as possible, with a view to reselling at a profit to move up a further step; otherwise, it will be a matter of renting or staying at home with parents.

Very different considerations will be taken into account by couples or single parents seeking a dwelling as home for the family. In most towns, there will be areas that are obviously more attractive than others. The inner suburbs are usually more densely packed, with concomitant housing of low standard. Subsequent clearance and redevelopment will have produced something different, but not necessarily any better. Levels of crime may be a significant factor influencing choice. Proximity to good transport facilities ought to influence buyers, even though the main breadwinner, if not employed in the town centre, can use a car for getting to work elsewhere. It is an important factor in the event of a change in employment and is also an influence on the ease of eventual resale. It should also not be forgotten that all members of a family benefit from having decent transport facilities close by. Their presence can save much inessential ferrying, reducing car use and, consequently, exhaust emissions. Where to put the ever-increasing number of cars when not in actual use poses a formidable problem in some families. The inner suburbs are notoriously short of garage space, and the shortage of space on local roads cluttered with parked cars has inevitably meant that local authorities have had to develop various systems of control and charging methods, with which the surveyor ought to be familiar. Accordingly, a garage in inner suburban areas attracts a premium on value, with the availability of off-street parking not far behind. In the outer suburbs, where dwellings with one garage, or even two, are more likely to be found, front gardens have all but disappeared, concreted over to take as many cars as possible. Some families can end up with four or more vehicles, when cars for both partners, as well as older children, are taken into account. The problem can be made worse where single garages from the 1920s and 1930s, found to be too small for modern cars, are converted into habitable rooms.

Children have to be educated, so that dwellings within easy reach of both good primary and secondary schools are likely to fetch higher prices. Easy reach means within safe walking distance, which is more convenient for both parents and children, the latter deriving benefit from the exercise of using their legs, rather than being cooped up in a car. The quality of the schools may influence choice, as well as the mix of pupils and the ambience of the locality in which they are situated. As part also of the educational process, library, sports and play facilities within a reasonable distance are obviously further advantages, such as swings, roundabouts and slides in the children’s play area of the local park, along with the tennis courts, roller-skate and skateboard areas and the sports fields for football, rugby and cricket. These can, of course, be pretty much the sole provision within a local park and the immediate area of an inner suburb, but, if further away from a town centre, may form part of a larger area of open space suitable for weekend walks and rambles. Indoor sports facilities are more likely to be found further afield, but in the opposite direction, either in or near the town centre, but are, nevertheless, an attraction if easily reached by public transport and provided with adequate parking spaces.

The orientation of the plot of land and the dwelling that is situated on it, or even of the block of flats and the individual flat within the block, can be of considerable concern to some. Front gardens have only been mentioned so far in light of their usefulness for off-street parking, a matter much deplored by the local planners and, in particular, the conservation officer, with steps now being taken to reduce the consequences of the practice, on the basis that a proportion of retained ground is better able to absorb rainfall than a front garden entirely covered with hard paving.

If parking or garaging is otherwise satisfactorily dealt with, a front garden for the average terrace or semi-detached dwelling facing north east may be sought by some as providing a cheerful bout of early-morning sunshine for the main and even a second bedroom, with a well-shaped and -cultivated front garden to provide a welcoming approach. With this orientation, two birds can be killed with one stone, so to speak, as the rear garden will satisfy the ‘G&T’ test for an aperitif and, later on in the evening, a drink in the warm glow of sunset. Children returning from school will be able to play in a sunny garden, and, of course, such an orientation will be prized by the enthusiastic gardener, one of those blessed with green fingers made in heaven, the multiplicity of garden centres attesting to the popularity of a pastime that can become obsessive with some who will put such orientation almost at the top of their list of requirements, to the extent of rejecting any other.

Away from the average terraced or semi-detached dwelling, the same conditions might apply on an estate of detached houses, but, for larger individual dwellings, it may be that the main garden is at the side. However, whatever the circumstances of orientation that may exist, the provision of a well-stocked, neatly cultivated garden will always help with saleability. The eco-friendly garden, allowed to grow rampantly to encourage wild flowers and provide a natural habitat for wildlife, will invariably do the opposite and may be highly unpopular with the neighbours. Wild gardens have been known to lead to disputes, as have neglected ones, and will seldom do anything to help saleability, certainly for the dwelling being considered and also, no doubt, for immediate neighbours, should they wish to sell.

Within gardens, what the surveyor/valuer/inspector needs to keep a sharp look out for are ill-defined boundaries or signs of encroachment. These can produce fierce disputes between neighbours and need to be drawn to the attention of buyers and lenders, if problems are suspected in this regard.

Everyone needs to eat, families even more so than young adults or the elderly, and so it was most important that the family home was near the shops at one time. Changes in retail practices, population movement denuding some villages entirely of a weekday population because of second-home buyers, the growth of car use and, to a lesser extent, the decline in the availability of public transport have meant that this factor is now given less consideration. The growth of supermarkets and the decline of local shops – vanishing almost entirely in some areas through lack of custom, but replaced in others by smaller, convenience-store versions of the major supermarkets – have meant less-frequent shopping trips and more storage of essential items in refrigerators and freezers. However, a handy local store with convenient opening hours, whoever it is operated by, is counted a boon by some, not least the forgetful.

As to condition, prospective buyers will look at this in different ways, according to their requirements. Those who look to move in and enjoy immediately the newly bought dwelling’s comforts will require a good standard, either as newly built and decorated or as an older dwelling that has been well maintained as to structure, finishes and services. Others, who wish to impose their own mark and ideas on the dwelling, may be justifiably concerned that the structure is satisfactory, but may not be too concerned as to the condition of kitchen and bathroom or the state of the decoration and services. The effect of condition on price will be a matter of degree between the very best, the ‘immaculate condition’ of the estate agent, although this may need to be viewed with a degree of scepticism, and, at the other end of the scale, ‘in need of some modernisation’, which may mean a good deal more than the words suggest.

The more mature, the elderly and the retired, whose families have probably long since moved away, have much more modest needs than the other two groups already considered. Some may be happy to sell the family home, where they may be rattling around with far too much room to spare. Downsizing is then sensible, moving to accommodation with, say, two bedrooms, one for themselves and one for the occasional visitor. As to location, they may be happy to buy afresh in the same location, if it has proved to be a happy one and the pleasure of contact with grandchildren is a possibility.

Alternatively, if their own children have settled in another area, a move to that area may be an arrangement that is satisfactory for all concerned. Much will depend on family relationships. There are happy families and less than happy ones, where neither parents nor children can stand the sight of each other and a fair distance between them is considered advantageous. There is no doubt, however, that both the elderly and those with children share a common need, and that is reasonable proximity to a general practitioner and, not too far away, the services of a local hospital.

One difficulty might be that the elderly’s often marked preference for a bungalow might not be capable of being met in England and Wales. These tend to be built more in areas known to be favoured by the retired, not necessarily in areas of mainly family homes, so that the grandparents may have to settle for a ground-floor flat. Even so, the absence of stairs means less worry when grandchildren visit. In Scotland, bungalows are more readily found in areas of family homes.

Most of the factors already considered apply irrespective of whether, at each stage of life, a house or flat is being sought, but one particular aspect in regard to flats needs serious thought as a matter affecting desirability and of course, to a considerable extent, value. It is the approach to the flat through the common parts. Considerable variations exist in practice, from the Spartan to the luxurious, as to entrance hall, stairs and, if provided, lifts, together with cleanliness, lighting and heating and whether there are staff to provide reception and perhaps porterage services. Even though everything, even the most basic services, has to be paid for as part of the service charge, it is, on balance, probably better from the point of view of maintaining the value of the flat and its saleability that such services (which, of course, can also extend to the provision of window cleaning, grounds maintenance and perhaps heating and constant hot water, should individual flats not have their own systems) are more than adequately provided.

The surveyor, although probably not the buyer, will know from his inspection and his enquiries on site, as well as the accounts, if shown to him, whether the management of the block in which the flat is situated is in good hands or leaves a lot to be desired and will report accordingly. However, what the surveyor needs to be particularly careful about is ascertaining whether the condition as found in the common parts, which, of course, also include the structure, indicates that works should be carried out, even though there are no suggestions of such from the estate or managing agents. Renewal of roof coverings, replacement of windows and boilers or replacement of staff by CCTV and gated security are all likely to come as a nasty shock, if buyers are not forewarned, even though the Landlord and Tenant Act 1985 requires consultation before works are carried out.

Apart from knowing something about economics in general terms, aspects of property law, theories of value and methods of valuation, it will be seen and should be stressed that a surveyor valuer needs to take a broad view of life, to be of the present time, to know what goes on in the world, in his own country and the locality in which he practises, to understand the needs, not only of his clients but of others as well, as ease of resale is of vital concern, and to know how their requirements are satisfied. He may need to draw on all his resources of background knowledge when the factual information he would wish to have is not always readily available and, even when it is, needs close examination to separate the wheat from the chaff, in order to identify those bits that provide useful and valid evidence.

As to values, and for the same reason that, in the second book of the series Inspecting, it was recommended that the surveyor should assess the category of exposure to wind-driven rain that applies to the area in which he practises, the surveyor should acquaint himself with the general level of values for the different types of residential property in the locality in which he operates. Whereas it is highly unlikely that the category of exposure will change over the years, he will need, however, to keep a watchful eye on values in order to keep up to date.

The foregoing sets out the factors that influence the buyers of dwellings for personal use at their various stages of life. There is, of course, another category of buyer. The same factors influencing the buyers of single dwellings for personal use will influence those buying single dwellings for investment purposes. When it comes to the eventual letting of the bought dwelling, it will need to fulfil the requirements of the targeted market, be it the young, those with family responsibilities or the elderly, as to location, type and condition.

The desire to buy a dwelling, for whatever reason, brings into view th...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• Preface
• Acknowledgements
• Introduction
• 1 Buyers
• 2 Advisers
• 3 Lenders
• 4 Valuers
• 5 Reports
• Appendices
• Glossary
• Index