How to Read and Understand Your Property Survey Report

You've received your property survey report – congratulations on taking this important step to protect your investment. However, many buyers feel overwhelmed when they first open their survey report. The technical language, condition ratings, and detailed observations can seem confusing. As experienced Watford Surveyors, we regularly help clients understand their survey reports and make informed decisions about their property purchases.

In this comprehensive guide, we'll demystify property survey reports, explain the key sections, decode the RICS condition ratings system, translate common surveying terminology, and show you how to use your report effectively when negotiating with sellers or planning future maintenance.

Understanding Survey Report Structure

RICS survey reports follow standardized formats to ensure consistency and clarity. While there are differences between Level 2 (HomeBuyer Report) and Level 3 (Building Survey) reports, all professional survey reports contain similar key sections.

Executive Summary or Overview

This is where most people should start. The executive summary highlights the most important findings from the survey – urgent defects requiring immediate attention, significant issues affecting value or safety, and major items needing further investigation. If you only read one section, make it this one.

Property Description and Condition Overview

This section describes the property type, age, construction method, accommodation layout, and general condition. It provides context for understanding the more detailed findings that follow.

Condition Ratings (Level 2 Surveys)

RICS Level 2 Home Surveys use a traffic light system with three condition ratings applied to different elements of the property. We'll explain these in detail shortly, but essentially: green means no issues, amber means defects requiring attention, and red means serious problems or urgent repairs needed.

Element-by-Element Analysis

Both Level 2 and Level 3 reports systematically examine the property element by element – roof, chimneys, rainwater goods, walls, windows, doors, floors, ceilings, services, drainage, and grounds. Each element is described, its condition assessed, and any defects or concerns noted.

Services Assessment

This section covers heating systems, hot water, plumbing, drainage, electrical installations, and gas services. Surveyors aren't specialist services engineers, so detailed testing isn't included, but visible concerns and recommendations for specialist inspections are noted.

Grounds and Boundaries

External areas, boundaries, outbuildings, drainage, paths, and gardens are examined for condition and any issues that may affect the property or require maintenance.

Advice and Recommendations

This critical section provides guidance on urgent repairs, further investigations needed, maintenance recommendations, and matters requiring legal or specialist advice. Pay close attention to this section when planning your next steps.

Reinstatement Cost for Insurance

The report includes an estimated rebuild cost for insurance purposes. This is NOT the property's market value but the cost to completely rebuild it if destroyed – important for ensuring adequate building insurance.

Market Valuation (if requested)

If you've commissioned a valuation alongside your survey, this section provides the surveyor's opinion of market value based on the property's condition and local market conditions.

Decoding RICS Condition Ratings

RICS Level 2 Home Surveys use a standardized condition rating system with three levels. Understanding what each rating means is crucial for interpreting your report correctly:

Condition Rating 1 (Green) – No Repair Currently Needed

Rating 1 doesn't mean "perfect condition" – it means no immediate repair is needed. Elements may show normal wear and tear appropriate for the property's age, but they're performing as expected and don't require repair or replacement in the short to medium term. Rating 1 is good news and requires no action beyond normal maintenance.

Examples: A 5-year-old roof in good condition; windows functioning properly with no defects; walls showing no significant cracking or dampness.

Condition Rating 2 (Amber) – Defects That Need Repairing or Replacing

Rating 2 indicates defects that need attention but aren't urgent emergencies. These are significant enough to require repair or replacement, potentially affecting value, but the property isn't in imminent danger. Rating 2 items should be addressed reasonably soon – typically within 12-24 months – and definitely factored into your purchase decision and budget.

Examples: Minor roof defects allowing water penetration; cracked or slipped roof tiles; failing rainwater goods; localized damp issues; deteriorating external decoration allowing weather damage; aging boiler nearing end of life; windows with failed double-glazing units.

Rating 2 findings are extremely common in surveys. Very few properties are completely defect-free, and Rating 2 items don't necessarily mean you should walk away. They do mean you should:

• Obtain repair quotes to understand costs accurately
• Consider negotiating with the seller for price reductions or repairs
• Budget for addressing these issues after purchase
• Prioritize which items need immediate attention vs. those that can wait

Condition Rating 3 (Red) – Defects That Are Serious and/or Need Urgent Repair

Rating 3 indicates serious defects that pose potential safety risks, significant structural concerns, or urgent repairs needed to prevent further deterioration and more expensive damage. These issues require immediate attention and professional advice. Rating 3 findings should trigger serious reconsideration of the purchase or significant price negotiation to reflect repair costs and inconvenience.

Examples: Evidence of significant structural movement or subsidence; extensive roof defects causing major water ingress; serious damp affecting structural timbers; dangerous electrical installations; failed drainage systems; significant timber decay; evidence of Japanese knotweed within 7m of buildings.

Rating 3 findings require prompt action:

• Commission specialist reports immediately (structural engineer, timber specialist, etc.)
• Obtain detailed repair specifications and accurate cost estimates
• Discuss findings urgently with your solicitor and mortgage lender
• Seriously consider whether to proceed, and if so, negotiate substantial price reductions
• Plan to address these issues before or immediately after purchase

NI – Not Inspected

Some elements will be marked "NI" (not inspected). This doesn't indicate a problem – it simply means the surveyor couldn't access or inspect that element. Common examples include concealed areas behind fitted furniture, inside wall cavities, beneath floor coverings, or roofs that weren't safely accessible. NI ratings are normal and expected; surveyors can only report on what they can see and safely access.

Common Surveying Terminology Explained

Survey reports use specific terminology that may be unfamiliar. Here are common terms you'll encounter and what they really mean:

Limited Visual Inspection

"We conducted a limited visual inspection from ground level..." This doesn't mean the survey was inadequate – it's standard surveying terminology indicating the inspection was visual (not involving destructive investigation) and subject to access limitations. Surveyors don't open up structures or move furniture, and can only comment on visible elements.

Outside Our Scope/Expertise

When specialist issues are identified (complex structural concerns, specialist services, contamination, etc.), surveyors will recommend further investigation by appropriate specialists. This is good practice – surveyors recognize the limits of their expertise and ensure you get proper specialist advice when needed.

Subject to Further Investigation

This phrase indicates an issue that warrants closer examination, often by specialists. For example: "Cracking noted in the rear wall. This may be historic and stabilized, but is subject to further investigation by a structural engineer." Follow up on these recommendations before completing your purchase.

Monitor and Maintain

"Monitor cracks for any progressive movement" or "maintain external decoration" means the issue isn't urgent now but requires ongoing attention to prevent deterioration. Take these recommendations seriously – minor issues become major problems if neglected.

Appropriate for the Age and Type of Property

This reassuring phrase indicates that while something may not be perfect, it's normal and acceptable for a property of this age and construction. For example: "Some minor cracking noted, which is appropriate for a Victorian property and not considered structurally significant."

Typical, Common, Normal

These words indicate the surveyor has seen this issue many times and it's standard for properties of this type. While it may still need addressing, it's not unusual or particularly concerning.

Beyond Our Professional Remit

Legal matters (boundaries, rights of way, planning permissions, building regulations) are outside surveyors' professional scope. The report will note when you should discuss issues with your solicitor.

How to Use Your Survey Report Effectively

Receiving your survey report is just the beginning. Here's how to use it strategically:

1. Read the Executive Summary First

Don't get lost in details immediately. Start with the executive summary to understand the big picture – are there any deal-breakers? Serious issues? Or mainly minor concerns? This helps you approach the full report with appropriate context.

2. Categorize Findings by Priority and Cost

Create a simple spreadsheet listing:

• Rating 3 items (urgent/serious) – obtain quotes immediately
• Rating 2 items (need attention) – prioritize by cost and importance
• Items requiring specialist investigations – commission these promptly
• Longer-term maintenance items – plan and budget accordingly

3. Obtain Repair Quotes

For significant defects, obtain written quotes from qualified contractors. Vague repair cost assumptions lead to poor negotiation outcomes. Accurate quotes give you confidence when discussing price adjustments with sellers.

4. Commission Recommended Specialist Reports

If the survey recommends structural engineer reports, electrical testing, timber specialist investigations, or drainage surveys, commission these before exchange of contracts. Don't hope these issues will be minor – get definitive answers.

5. Discuss Findings with Your Solicitor

Share the survey report with your solicitor, particularly if issues are noted that might have legal implications (boundaries, access, alterations without building regulations, Japanese knotweed, etc.). Your solicitor can make appropriate enquiries of the seller.

6. Inform Your Mortgage Lender

If the survey reveals issues that might affect mortgageability (structural problems, Japanese knotweed, significant defects), inform your lender immediately. Some issues may affect their willingness to lend or require retention of funds for repairs.

7. Negotiate Strategically

Armed with accurate repair costs, negotiate with the seller. Options include:

• Price reduction equivalent to repair costs (often plus a margin for inconvenience)
• Seller completes repairs before completion (ensure work is properly specified and guaranteed)
• Retention of funds by solicitors to cover specific repairs
• In cases of serious defects, walking away may be the right decision

Remember, most properties have some defects. The survey's purpose is to reveal these so you can make informed decisions, not to present a perfect property. As Watford Surveyors, we regularly see buyers successfully negotiate £5,000-£20,000 price reductions based on survey findings – far more than the survey cost.

When Survey Reports Reveal Deal-Breakers

Sometimes surveys reveal issues serious enough to reconsider the purchase entirely. We've encountered situations where properties initially appealing turn out to have fundamental problems that make them poor investments:

Structural Subsidence Requiring Underpinning

Active subsidence with evidence of progressive movement may require expensive underpinning (£10,000-£50,000+). Even after repair, future insurability and resale value can be affected. Unless you're getting a very substantial price reduction, these properties often aren't worth the risk and hassle.

Extensive Hidden Defects

Sometimes surveys reveal that a property has been cosmetically improved but underlying problems masked. Extensive damp, structural timber decay, or serious roof defects hidden beneath new plaster or decoration suggest poor workmanship and potentially many more hidden problems.

Non-Traditional Construction Issues

Certain non-traditional construction methods from the mid-20th century have known defects and can be difficult or impossible to mortgage. If surveys reveal unexpected construction types with associated problems, reconsider the purchase.

Extensive Asbestos or Contamination

While small amounts of asbestos in good condition can be managed, extensive asbestos requiring professional removal can cost tens of thousands and create significant health and safety concerns during any renovation work.

Walking away costs only your survey fee and other pre-exchange expenses – far less than the financial and emotional cost of buying a problem property. Don't let sunk costs pressure you into proceeding with a purchase your survey has revealed to be unwise.

Different Report Types: What to Expect

RICS Level 2 Home Survey

The Level 2 Home Survey (formerly HomeBuyer Report) is the most popular survey type, suitable for conventional properties in reasonable condition. Reports are standardized with condition ratings, typically 15-25 pages, and include recommendations for further investigations where appropriate. These reports balance detail with readability, providing sufficient information for most homebuyers without overwhelming technical detail.

RICS Level 3 Building Survey

The Level 3 Building Survey (formerly Full Structural Survey) is more detailed and comprehensive, typically 30-60 pages. There's no condition rating system – instead, each element is described in detail with comprehensive analysis of construction, condition, defects, and recommendations. Level 3 surveys are essential for older properties, buildings in poor condition, unusual construction, or properties you intend to renovate. While more detailed and technical, they provide invaluable information for planning works and understanding long-term maintenance requirements.

New Build Snagging Surveys

Snagging surveys are quite different – they're detailed checklists of finishing defects and incomplete work in new properties. Reports list hundreds of minor issues (paint defects, gaps, scratches, poorly fitted fixtures) for the developer to rectify. These reports are less about structural concerns and more about ensuring you receive the finish quality you've paid for.

Following Up After Reading Your Report

After thoroughly reviewing your survey report, take these next steps:

Immediate actions (within days):

• Contact the surveyor with any questions – we're happy to discuss findings and clarify concerns
• Commission urgent specialist reports if recommended
• Inform your solicitor and mortgage lender of significant findings
• Start obtaining repair quotes for significant defects

Short-term actions (within weeks):

• Complete specialist investigations
• Gather accurate repair cost information
• Discuss negotiation strategy with your estate agent or solicitor
• Negotiate with seller based on concrete evidence and accurate costs
• Make your final decision on whether to proceed

Post-purchase actions:

• Keep your survey report safe – it's a valuable reference document
• Address urgent repairs immediately after completion
• Plan and budget for medium-term maintenance items
• Follow monitoring recommendations (check for crack movement, etc.)
• Maintain external decoration and drainage as recommended
• When selling in future, your survey helps explain property history to buyers

Frequently Asked Questions

Should I be alarmed if my survey has lots of amber (Rating 2) items?

Not necessarily. Most surveys contain multiple Rating 2 items – very few properties are perfect. What matters is the nature and cost of the issues identified. Minor maintenance items are very different from expensive structural repairs. Focus on understanding the cost implications and prioritizing which items genuinely matter.

Can I call the surveyor to discuss the report?

Absolutely! Professional surveyors expect and welcome follow-up calls. We're happy to discuss findings, clarify terminology, explain priorities, and provide guidance on next steps. Don't hesitate to call – it's part of the service and ensures you fully understand your report.

How much should I negotiate based on survey findings?

This depends on accurate repair costs and the property market. In a buyer's market with properties sitting unsold, you might negotiate for full repair costs plus a margin. In competitive markets, sellers have less incentive to negotiate. Base negotiations on realistic quotes, not vague estimates, and be prepared to compromise or walk away if necessary.

What if the seller refuses to negotiate after the survey?

You have three options: proceed accepting the property's condition and budgeting for repairs; reduce your offer to reflect repair costs and walk away if the seller won't accept; or withdraw from the purchase. The right choice depends on the severity of issues, your available budget, how much you want this specific property, and local market conditions.

How long is my survey report valid?

Survey reports are valid for the date of inspection and a short period afterwards (typically 3 months). Property conditions can change, particularly during winter weather or following storms. If there's significant delay before completion, consider whether a re-inspection might be appropriate.

Conclusion: Your Survey Report as a Valuable Tool

Your property survey report is one of the most important documents in your house-buying journey. While it may initially seem overwhelming, understanding the structure, condition rating system, and key terminology empowers you to make confident, informed decisions about your property purchase.

As professional Watford Surveyors, we write our reports to be clear, comprehensive, and actionable. We want you to understand exactly what we've found, what it means, and what you should do next. We're always available to discuss our findings and help you interpret the report in the context of your specific circumstances.

A thorough understanding of your survey report protects your investment, enables effective negotiation, helps you budget accurately for maintenance and repairs, and ultimately ensures you're purchasing a property with full knowledge of its condition. That peace of mind is invaluable and precisely why professional surveys are so important.