Earlier this year, I wrote about why I believe a seller’s survey could be the secret to a smoother property sale.
The idea was fairly simple: why wait until a buyer has made an offer before finding out what a surveyor might say about your property?
A pre-sale survey gives a seller the opportunity to understand the condition of their home before putting it on the market, rather than discovering potential problems several weeks into a transaction.
Since then, there has been an important development.
The Government has now published its Home Buying and Selling Reform Roadmap, setting out how it intends to change the way residential property transactions work.
One of the most significant proposals is the introduction of sales packs prepared before a property is listed.
So what does that mean for sellers?
What is the proposed sellers pack?
The Government’s intention is that, when legislation is introduced, a sales pack will need to be prepared before a property goes on the market.
The precise requirements have not yet been finalised, but the Government’s current proposal suggests that a pack could include:
- Tenure information, such as freehold or leasehold
- Title information and documents
- Council Tax band
- EPC rating
- Leasehold or managed estate information
- Building safety information
- Local authority, drainage, water and environmental searches
- A property questionnaire
- A property condition assessment tailored to the property’s age and type
- Accessibility information
- Chain status
- A floor plan
The important point is that this is not yet a mandatory requirement.
The Government says legislation will be introduced when parliamentary time allows, and the details of the sales pack are still subject to change.
But the direction of travel is clear: more of the important information about a property should be available at the beginning of the selling process rather than appearing gradually after an offer has been accepted.
Why is the Government proposing this?
Selling a home can be frustratingly unpredictable.
According to the Government’s roadmap, it currently takes around 120 days on average to complete a transaction once an offer has been accepted.
Even more significantly, around one in three transactions fall through.
There are many reasons for this, including chains, legal issues, missing information and problems discovered during the transaction.
The Government’s view is that too much important information arrives too late.
A buyer makes an offer, the transaction progresses, money is spent and expectations build — and then a problem emerges that could potentially have been identified much earlier.
The aim of the proposed sales pack is to move more of that information to the beginning of the process.
That makes sense.
Where does the seller’s survey fit in?
This is where I think the proposed reforms become particularly interesting for surveyors and sellers.
At the moment, the buyer will generally arrange their own survey after an offer has been accepted.
That means the seller can be well into the process before finding out that the buyer’s surveyor has identified a significant issue.
Perhaps there is evidence of damp.
Perhaps the roof needs attention.
Perhaps there are signs of movement or another defect that requires further investigation.
The buyer may then want to renegotiate the price.
Or they may decide that the property is not right for them after all.
A seller’s survey changes the timing.
Instead of waiting for a buyer to uncover potential problems, the seller can understand the condition of the property before deciding how to market it.
That doesn’t mean the buyer shouldn’t have their own survey.
They absolutely should.
A pre-sale survey is not a replacement for the buyer’s own inspection.
It is about giving the seller better information before they enter negotiations.
Information gives sellers choices
One of the biggest advantages of understanding a property’s condition before marketing it is that it gives the seller choices.
If an issue is identified, the seller could decide to fix it before going to market.
Alternatively, they could obtain quotations for the work and use that information when deciding on their asking price.
Or they may decide not to carry out the work but make sure the issue is properly understood and disclosed during the sale.
None of those options is necessarily right or wrong.
The important thing is that the seller is making an informed decision rather than being surprised several weeks after accepting an offer.
That is why I think the proposed sales pack could change the role of the surveyor in the selling process.
What about accuracy and responsibility?
This is another area that will need careful consideration.
If more property information is being provided upfront, buyers need to have confidence that the information is accurate, relevant and understandable.
The Government’s consultation responses highlighted the importance of trusted information, standardised forms and collaboration between property professionals.
It also recognises that some information requires specialist expertise.
The Government says future sales packs would benefit from the expertise of both conveyancers and surveyors, with the property condition report being an important part of the proposed pack.
That raises some interesting questions.
What should a property condition report contain?
What level of inspection should be expected?
Who should be responsible for preparing it?
What professional standards should apply?
And how should technical information be presented so that an ordinary buyer can understand what it actually means?
These are important questions if the system is going to work.
Could this reduce fall-throughs?
That is ultimately the big question.
No reform is going to eliminate every property sale that falls through.
Chains will still exist. Buyers will still change their minds. Legal problems will still arise.
But if a buyer has access to more reliable information before committing to a purchase, there should be fewer occasions where a significant issue comes as a complete surprise later in the transaction.
That can only help.
It could also change the conversation between buyers and sellers.
Instead of:
“We’ve found a problem with the property. What are we going to do about it?”
the conversation could become:
“We knew about this issue before we agreed the sale. Here’s the information and here’s how we’ve priced the property.”
That feels like a much more transparent way of buying and selling a home.
What should sellers do now?
There is no need to wait for legislation before thinking about this.
If you’re considering selling your property, getting a better understanding of its condition before putting it on the market can still be useful.
You may discover that everything is in good order, which gives you confidence.
Or you may identify something that needs attention.
Either way, knowing earlier gives you more time and more options.
The Government’s proposed sales pack may still be some way from becoming a legal requirement, but the direction of travel is clear.
The home-selling process is moving towards more information being available earlier.
For sellers, I think that is a positive development.
The question is how we make sure that information is accurate, useful and professionally prepared.
And that’s where I believe surveyors will have an increasingly important role to play.
If you’re thinking about selling and would like to understand how a pre-sale survey could help you prepare, we’d be happy to talk through your options.
