Robert Williams Estate Agents, Exeter

A property survey is an inspection and report that can help you to better understand the condition of a property and identify any issues it might have.

When you apply for a mortgage, your lender will carry out a valuation survey – this is purely to satisfy the lender that the property represents sufficient security for the loan. This could be desk-based or may involve a drive-by; its scope is limited, and you may not get a copy of the report.

So, it’s advisable for buyers to commission their own survey, particularly in the case of older and period homes. Our home is our biggest investment, so it’s best to be reassured that everything is ok in advance, rather than encountering a nasty surprise when it’s too late. Be sure to use a surveyor accredited by the RICS (Royal Institute of Chartered Surveyors) or the RPSA (Residential Property Surveyors Association).

There are generally three survey options.

The RICS Home Survey – Level 1 is most suited to standard, modern properties. Without going into any detail, it gives a basic overview of the property’s condition and highlights any significant issues.

In most cases, the RICS Home Survey – Level 2 (previously the Homebuyers Report) or the RPSA Home Condition Survey should be adequate. This mid-level survey is suited to most conventional properties in a reasonable condition and evaluates their overall condition and state of repair. It highlights any problems that might affect the property’s value as well as issues such as damp and subsidence, and anything that doesn’t meet current building regulations. It also includes advice on repairs and ongoing maintenance. However, the surveyor doesn’t look under floorboards, etc, so this report identifies surface-level issues only. This costs upward of around £500, depending on the property and its location.

The RICS Home Survey – Level 3 or the RPSA Building Survey, often referred to as a ‘full structural’ survey, is the most comprehensive survey and is most suited to properties over 50 years old, those unusual in design or in a poor condition. Here, the surveyor gets down and dirty in the attic, under floorboards, etc, to conduct a thorough inspection and produces an in-depth analysis of the property’s structure and condition. The Level 3 report is priced from around £700.

If you’d like to discuss this in more detail, call or WhatsApp us on 01392 204800 – we’ll be happy to help.

Join our Q&A with Oliver - if you have any property-related questions, just ask! 

Our esteemed auctioneer and sales consultant, Richard Copus (FNAVA FNAEA (Hon’d) CPEA), explains ‘unless sold prior’…

Most properties that are listed for sale by auction also state ‘unless sold prior’. Why is this and what does it mean?

Most auction listings say this for a number of reasons:

Firstly, if this is not stated and the property is sold before the auction, it could leave the auctioneer liable to having legal action taken against them by a disgruntled prospective bidder who had geared themselves up to bid on the day.

Secondly, sometimes there is not a lot of interest when a property is being marketed but there is one person particularly keen to buy it. In this case, the auctioneer might recommend to the seller that a bird in the hand is worth two in the bush and to sell prior to this person would mean a quick sale and would also prevent the stigma of an unsold property if it were to continue to the auction.

Thirdly and importantly, auction conditions still apply to a ‘sold prior’ sale, so ‘sold’ means exactly what it says. It is not ‘sale agreed’ or ‘sold subject to contract’. If someone makes an offer before the auction and the seller chooses to accept it, they must exchange contracts immediately, just as they would in the auction room. They will have read through the exchange-ready legal pack so have no reason for any delay. The buyer signs the sales memorandum just as they would do at the actual auction and pays the 10% of the purchase price likewise to secure the transaction. Completion is usually the date provided for in the contract unless changed by mutual agreement.

Properties that are sold by auction are generally niche, unusual in some way, or in need of renovation or repairs. It is worth noting that a good auctioneer knows their market, they know who has downloaded the legal pack, they may well have spoken with the interested parties, and it is with this knowledge and their experience that they make recommendations.

It is bad practice for an auctioneer to set up an auction sale with the intention to sell the property beforehand. It does happen sometimes and can lead to problems when more than one person wants to buy it – after all, the whole point of an auction is ultimately to encourage people to bid against each other, to achieve a secure sale at the best price.

If you are buyer desperately keen to buy the house of your dreams and have it taken out of the auction, don't be frightened to make an offer via the auctioneer, but don't fall into the trap of thinking that you will then have time to sort out your finances. Sold means sold now!

For more information on selling by auction, see the 'Auctions' page of our website under the 'Services' button. If you have a property that you'd like to discuss selling by auction, give us a call or WhatsApp us on 01392 204800.

We're pleased to bring you the latest mortgage update from our colleagues at The Mortgage Quarter.

Interest rates

The Bank of England has held the base rate at 4.5% this February, providing some stability for borrowers and homeowners. While rates remain unchanged for now, this decision offers a steady footing for those looking to secure a mortgage or remortgage in the coming months.

Great news for buyers!

Mortgage rates are becoming more competitive! The lowest available rate currently sits at 3.97% on a five-year fixed purchase deal, offering stability and peace of mind for those looking to secure their mortgage in the long term.

It's important to note that the lowest rates aren't always available to everyone, as they depend on factors such as deposit size, credit history, and individual lender criteria. However, there are still plenty of competitive options available.

High-Street lenders

For the first time in a while, high-street lenders have broken the sub-4% interest rate mark, with rates as low as 3.99%. This is a positive sign that lenders are feeling more optimistic about the market, making homeownership more accessible for buyers.

If this trend continues, we could see even more lenders following suit with rate reductions, creating better opportunities for those looking to secure a mortgage.

We can help

Now could be a good time to explore options. If you're looking to move home, check out our listings of property for sale, give us a call on 01392 204800 or WhatsApp us - we'll be pleased to help.

If you need a mortgage to purchase a home, or if it's time to re-mortgage, get in touch with the team at The Mortgage Quarter to see how they can help find the right mortgage deal for you.

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Conservation areas are zones of distinctive historic or architectural interest, designated by local authorities and governed by stricter planning regulations to maintain, preserve, protect, and enhance their character.

First introduced with the Civic Amenities Act of 1967, conservation areas are found in both urban and rural settings and thousands have since been designated across the UK, each with its own unique characteristics and requirements.

There are some drawbacks of buying a home in such an area, but there are also several advantages.

Stricter planning controls may stipulate that specific building materials or techniques are used in maintaining, altering, or extending properties in the area, which could prove more costly than that of those in non-conservation areas. A requirement to use specific materials could also result in increased insurance premiums due to the cost of repairs in the case of an incident. Similarly, there may be limitations on the installation of modern amenities such as solar panels.

However, there are many upsides to these stricter planning regulations. By its very nature, a conservation area is a place of beauty, whether it features wonderfully preserved buildings, picturesque streetscapes, green spaces or mature trees, and these are protected under the Act therefore you can rest assured that no inappropriate developments would be approved, and property values protected. Indeed, research has found that homes in conservation areas generally cost more and appreciate in price more than those in other areas.

In addition, there is often a stronger sense of community as everyone shares a common outlook and interest in preserving and enhancing the aesthetic appeal of the area. And in areas with protected green spaces and trees, there are environmental benefits including better air quality and the preservation of wildlife habitats.

Your decision ultimately depends on your individual priorities, preferences and circumstances, but I would say that if you are willing to adhere to the associated regulations, residing in a pristine rural or urban area that is protected by conservation efforts can be highly rewarding.

Our in-house auctioneer, the well-respected and highly acclaimed Richard Copus is a Fellow of the National Association of Valuers & Auctioneers, an Honoured Fellow of the National Association of Estate Agents, and an industry trainer for Propertymark. 

Richard explores the virtues of online auctions vs in-room auctions...

Since Covid, the use of online auctions has increased in leaps and bounds. Before the pandemic, only about 25% of auctions were online, the figure is now closer to 75%. Why is this?

During Covid, the reasons were obvious - it was not possible to travel to places easily. But now this is not the case and online auctions have still become mainstream. One of the reasons for this is that online auctions are so easy. Bidders don't have to travel with the stress of possible delays making them miss the auction, and bidding on your laptop is easier than making bids over the phone to someone in the room who passes that bid onto the auctioneer. Also, buyers tend to prefer making their own bids online rather than appointing someone to bid on their behalf.

From the auctioneer's and seller's points of view, online auctions have additional advantages. Although ideally, everyone who is interested in a property should view it before bidding for it, many people don’t, deciding instead to take a calculated risk, and the convenience of online bidding increases these numbers. Also, the auctioneer doesn’t have to go to the effort and cost of setting up an actual auction room and conducting the bidding when they can just sit and monitor the bids being made.  

So, which is best?

That depends on the property.  A mid-terrace house in a big city which requires work and is likely to sell to an investor who may well live a long way away is ideal online material. Because many of the prospective buyers for these properties are investors who will probably bid from the information provided only, this widens the market considerably. Conversely, an individual, detached, period property in a village or small town will probably benefit from a live venue because most people bidding are likely to be relatively local and the auction is completely transparent because everybody can see everybody else.  

Which is the easiest way to buy? 

Both are as easy as each other, but completely different! Those bidding online need to use a device and know what they are doing. For most, that is not a problem, but many auctioneers will have had very disappointed bidders whose internet connection failed at a crucial time or left things to the last moment and couldn’t access the system.  

Online models

There are a variety of online auction models.  The simplest is akin to ebay, but with one big difference; if a bid comes in a minute before the end of the auction, another minute is added (the timescale may differ slightly from auction to auction), enabling every buyer to have a fair chance of increasing their bid to their maximum. Alternatively, some auctioneers use zoom to conduct live auctions.

At a venue

Auctions in the room are ‘strictly’ called ‘Ballroom Auctions’. Most buyers still seem to prefer these because they trust them more, given the transparency of everyone being in the same room. From the auctioneer's point of view, the auction room creates a buzz and an atmosphere, which encourages people to bid against each other. The auctioneer can use their skill and personality to encourage more bids, and they can alter the bidding increments as they see fit to achieve those extra few thousands or even hundreds of pounds for his client.

Both methods of auction are as good as each other. For buyers bidding online, just make sure that the auction house you will be bidding through is established with a good reputation.

Whether you’re a buyer or a seller, if you’d like to find out more about auctions or to discuss a specific property, just give us a call on 01392 204800 and we’ll be happy to help.

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