A property with damp or structural issues would prevent more than a third of buyers making an offer, new research from LRG reveals.
The survey of more than 700 buyers and sellers found that damp or structural issues would stop 35% making an offer, but this proportion rose to above 40% among first-time buyers.
Ryan Mathews, group managing director of surveying at LRG, said: “Someone who has owned before tends to know that damp is a symptom rather than a single defect, and that a good deal of what a surveyor reports is manageable and can be priced.
“A first-time buyer usually has neither that experience nor much of a contingency fund, so an unexpected report reads as a reason to walk away.”
When the government published its home buying and selling reform roadmap in June, it committed to legislating for sales packs prepared before a property is listed. This would include searches and a property condition report.
The research suggests the buyers most likely to walk away are those with least experience of what a defect actually costs. It also warns that a homebuyer’s report often identifies an issue, rather than confirming the cause. For example, damp can have several causes, each with different implications for cost and urgency.
Neil Louth, group executive director, LRG and CEO, Acorn Group, said: “The fact that 35% of buyers say they would walk away because of damp or structural issues really highlights the importance of good advice. Identifying a problem doesn’t necessarily mean a transaction should fail. With the right surveyor and specialist support, the issue can be properly understood, quotations can be obtained, and the options for resolving it can be put in front of both buyer and seller.
“That’s why getting condition information upfront is so important. It gives everyone more time to find a solution, whether that means carrying out remedial work, reflecting the cost in the sale or giving the buyer the information they need to proceed with confidence. In an advice-led market, bringing the right professionals together early can prevent a manageable issue becoming the reason an otherwise good transaction falls through, saving both buyer and seller unnecessary time and money.”
