What Is a Homebuyers Report?

Are you thinking about buying a home? If so, you may have heard of a homebuyers report. But what is a homebuyers report, and do you need one? A homebuyers report is a document that sets out the condition of a property. It covers the state of the structure, any repairs that appear to be needed, and other information a buyer should know before committing.

In this article we explain what a homebuyer report is, what it includes, and how it differs from the other levels of survey, so you can decide what is right for your purchase.

• What is a homebuyers report?
• What is included in a homebuyer report?
• What happens if your surveyor finds an issue?
• What does a homebuyers report do for you as the buyer?
• Should I get a homebuyers report?
• Where to find a surveyor

What is a homebuyers report?

The homebuyers report, more accurately the RICS Level 2 Home Survey, is a summary of a property that gives prospective buyers clear information about its condition. It is carried out by a qualified surveyor and includes an inspection of the outside and inside of the building: the roof where it can be seen from the ground, the walls, the windows, the visible parts of the structure, and the services where they are accessible.

It is a visual inspection. The surveyor does not lift fitted carpets, move heavy furniture, or open up the structure. What can be seen and reached is reported on. Where something is hidden or cannot be assessed, the report says so and tells you what further checks are advisable.

Used properly, it lets you assess the condition of a home before you commit, so you can make an informed decision on whether it suits your needs and whether the price is right.

What's the difference between a homebuyers report and a Building Survey?

A homebuyers report is a concise report on the condition of a property, designed to give buyers a clear overview. It focuses on the significant defects that affect the property, whereas a Building Survey, the RICS Level 3, is more comprehensive. It gives greater detail on the condition of all areas of the building, explains the likely cause of a defect, and sets out repair options in more depth.

That level of detail makes the Level 3 better suited to older properties, buildings that have been altered or extended, and homes of unusual construction. It takes in both internal and external areas, and outbuildings where they are part of the sale.

If you are weighing the two up, our guide on Homebuyer Report vs Building Survey walks through which one fits which type of property.

What's the difference between a homebuyers report and a Condition Report?

The RICS Level 1 Home Survey, the Condition Report, is the most basic inspection. It is a visual assessment of the accessible parts of the property that flags visible defects and gives a condition rating to each element, but it carries little advice and no further commentary.

A Level 2 homebuyers report covers everything a Level 1 does and goes further. It includes moisture readings to the walls, comment on accessible services, notes on damp, timber and insulation, and advice on what the findings mean for you and what to do next. Each element still gets a rating, but you also get the surveyor's judgement on it.

For a fuller comparison of all three, see Understanding Different Types of House Surveys.

What is included in a homebuyer report?

A homebuyers report includes detailed information about the property, such as the structure of the building, any repairs that appear to be needed, and other details such as drainage and services.

Other things the homebuyers report covers are:

• Background information on the property and its location
• A condition rating of 1, 2 or 3 against each main element, so you can see what needs attention
• An assessment of visible damp-proofing, drainage and insulation
• The condition of accessible timbers, and checks for woodworm or rot
• Damp readings taken from the walls
• Urgent issues that should receive specialist attention before you exchange
• Significant defects in the accessible parts of the property that may affect its value

The report also gives advice on repairs or further investigation, so you can deal with any problems before you commit. To understand what the 1, 2 and 3 ratings mean in practice, see RICS Condition Ratings Explained.

What happens if your surveyor finds an issue?

If your surveyor finds an issue, you may be able to negotiate a reduction in the price or ask the seller to cover the cost of repairs. A homebuyers report is not a guarantee, so it is best to take advice on the right course of action before you decide.

Surveys typically uncover a few problems, particularly with older homes. If you have any doubts, you can discuss them with the surveyor before the inspection, and most surveyors are happy to answer questions once the report is delivered.

Some of the things you might want to look into further are:

• Electrics
• Roofing
• Central heating
• Damp
• Structural problems that may need an engineer

If any of these come up, the next steps are usually:

• Ask what it is likely to cost to put right
• Get a quote from a builder or specialist for major works
• Renegotiate the price or ask the seller to fix the issues before you exchange

Our guide on how to renegotiate an offer after a home survey sets out how to use the findings without losing the purchase.

What does a homebuyers report do for you as the buyer?

A homebuyers report gives you an independent view of the condition of the property, from the structure through to damp, timber and the visible services. RICS surveyors are trained to gather this information and set it out in a clear, readable report.

It also gives practical advice on repair works or further investigation. You never know what may be lurking under the surface, and issues that were not obvious on a viewing can affect what the property is worth to you. Set against the price of the purchase, the cost of the report is small.

Should I get a homebuyers report?

A homebuyers report is not legally required, but for most buyers it is worth it. The mortgage valuation your lender arranges is not a survey: it is a check on whether the property is adequate security for the loan, and it tells you almost nothing about condition. Buying without your own survey leaves the risk of any defect with you.

Whether a Level 2 is the right choice depends on the property. For a conventional house or flat built in the last century or so, in reasonable order, a homebuyers report is usually enough. For an older building, one that has been extended or altered, or one of unusual construction, a Level 3 is often the better fit.

If you are still unsure, Which level of survey should you get? runs through the deciding factors.

Where to find a surveyor

A reliable surveyor is the person best placed to tell you what you are buying. A good place to start is local directories and recommendations from people you trust.

Ask any surveyor about their qualifications and experience, and check that they are RICS regulated. Read their reviews as well, so you have a sense of how they work before you instruct them.

In short, a homebuyers report is a survey that assesses the condition of a property. It identifies the significant problems and flags areas that may cause concern later. It is not legally binding, but it gives you a realistic picture of what you are taking on. If the surveyor finds an issue, they will advise you on how best to deal with it.

A homebuyers report is designed to give you a clear head during what can be a stressful time. It is thorough, but not as exhaustive as a Level 3, so there may still be some surprises down the line. For most conventional purchases it is a sound choice.

Frequently asked questions

What is a homebuyers report?

A homebuyers report is the common name for the RICS Level 2 Home Survey. It is a visual inspection of a property that reports on the condition of the parts a surveyor can see and reach, gives each main element a condition rating of 1, 2 or 3, and advises on repairs and further checks. It does not open up the structure.

Should I get a homebuyers report?

For most buyers, yes. A mortgage valuation is not a survey and tells you little about condition, so without your own report the risk of any hidden defect sits with you. A homebuyers report suits most conventional houses and flats in reasonable order. For older, altered or unusual properties, a Level 3 is often the better choice.

How is a homebuyer report different from a mortgage valuation?

A mortgage valuation is carried out for the lender to confirm the property is adequate security for the loan. It is brief and is not written for you. A homebuyer report is instructed by you and assesses the condition of the property in detail. See Survey vs Mortgage Valuation for the full comparison.

Does a homebuyers report include a valuation?

A homebuyers report can include a market valuation and a reinstatement figure for insurance if you ask for it, though this is not part of every Level 2 report. It is worth confirming with your surveyor at the point of instruction whether a valuation is included.

Can I renegotiate the price after a homebuyers report?

Yes. If the report flags significant defects, you can go back to the seller with quotes for the work and either ask for a price reduction or ask them to carry out the repairs before you exchange. The report gives you the evidence to make that case.