House Survey Found Problems? What to Do Next Before You Exchange

Step 1: Read the report properly

An RICS Home Survey (Level 2 or Level 3) uses condition ratings for each part of the property:

• Condition rating 1: no repair is currently needed. The property element should be maintained in the normal way.
• Condition rating 2: defects that need repairing or replacing but are not considered to be serious or urgent.
• Condition rating 3: defects that are serious and/or need to be repaired, replaced or investigated urgently.
• NI: not inspected, usually because the area was not accessible.

Focus first on the 3s, then any recommendation for further investigation, and any "NI" areas that matter, such as a roof space or drains. Also check the sections on legal matters, which list points your conveyancer should look into, such as planning permission or building regulations for an extension.

Step 2: Talk to your surveyor

Write down your questions and call the surveyor who inspected the property. Useful questions include:

• How serious is this defect, and what might happen if it is left?
• Is it typical for a property of this age and type, or unusual?
• What kind of contractor or specialist should look at it?
• Is this a repair, or something that needs monitoring over time?

A good surveyor will explain the findings in plain English. If you instructed us, you can get in touch to talk the report through.

Step 3: Get further investigations and quotes

A survey identifies problems; it does not always tell you the cost of fixing them. Before you negotiate, get evidence:

• Specialist reports where the survey recommends them, for example a structural engineer for significant cracking, an electrician's inspection, a drainage CCTV survey, or a timber and damp specialist. A specific defect survey can look at one issue in more depth.
• Written quotes from at least two or three contractors for each significant repair.
• Timing: ask whether the work is urgent or can be planned over a few years.

Ask your conveyancer whether the timetable allows for this, and keep the seller's agent informed that investigations are under way.

Step 4: Decide what the problems mean to you

Put the findings into three groups:

1. Deal-breakers: problems you are not willing to take on at any price.
2. Price issues: repairs that are acceptable if the price reflects them.
3. Normal maintenance: things you would expect in a property of this age, which are usually not grounds for renegotiation.

Be realistic. Sellers are more likely to respond to a request that is backed by quotes and focused on significant defects than to a long list of minor items.

Step 5: Choose your option

Renegotiate the price

Send your offer through the estate agent with the relevant extracts from the survey and the contractor quotes. Explain clearly what the reduction is for. The seller may agree, meet you part way or refuse.

Ask the seller to carry out repairs

This can work for clearly defined jobs. Agree exactly what will be done, by whom, and how it will be evidenced, such as certificates or invoices, and make sure your conveyancer reflects it in the contract. You have less control over the quality of work done by someone else, so price reductions are often simpler.

Agree a retention

Sometimes part of the price is held back until work is completed. This needs careful legal drafting, so ask your conveyancer whether it is suitable.

Proceed as agreed

If the issues are modest and the price already reflects the property's condition, you may decide to go ahead and budget for the work.

Withdraw

In England and Wales you are not legally committed until exchange of contracts. If the problems are too serious or the seller will not move, you can withdraw before then. You will usually have spent money on the survey, searches and legal fees, but that is often far less than the cost of buying the wrong property.

Step 6: Tell your mortgage lender and conveyancer

Your lender's valuation is separate from your own survey. If you agree a new price, your lender and conveyancer need to know, and the lender may re-check the figures. Your conveyancer also needs any survey points that affect the legal side, such as missing approvals or rights of way.

Common findings and sensible next steps

Choosing the right survey in the first place

If you are still at the offer stage, matching the survey to the property makes the report more useful. A Level 2 survey suits many conventional homes in reasonable condition; a Level 3 building survey is generally the better fit for older, larger or altered properties. I AM Surveyors carries out surveys across the West Midlands, Birmingham, Manchester, Liverpool and surrounding areas. To compare options, get an instant quote or call 0121 798 9093.

This guide is general information about the buying process in England and Wales and is not legal or financial advice. Speak to your conveyancer about your own purchase.

Frequently asked questions

Can I renegotiate the house price after a survey?

Yes. Until contracts are exchanged in England and Wales, you can ask the seller to reduce the price, carry out repairs or contribute to costs. The seller does not have to agree.

What does condition rating 3 mean on a survey?

On an RICS Home Survey, condition rating 3 means defects that are serious and/or need to be repaired, replaced or investigated urgently.

Should I pull out of a house purchase after a bad survey?

Not automatically. Get quotes and specialist advice first. If the costs or risks are more than you are prepared to take on and the seller will not negotiate, withdrawing before exchange may be the right choice.

Can I ask my surveyor questions about the report?

Yes. It is good practice to speak to the surveyor after reading the report so they can explain the findings and their significance.