Surveying it yourself and snagging

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By snagging, we mean to find all the faults that need to be put right. In a brand new house some say you should expect between a hundred and a hundred and fifty items to be on your snagging list. From this you can see we are talking about all the tiny faults not just major problems. This can be done on a second visit, perhaps the following day, and ideally with the owner. It can take some time, and you also need to determine what is to stay and what is to go as well as which of the faults you identify they are going to put right. 

We take with us a small number of things. Mobile phone, details on the property, local map section, a notebook and pen, short ruler and small pendulum or plum bob, binoculars, tape measure, torch, small screwdriver. electronic distance estimator (optional), magnetic compass (optional) damp meter (optional), electronic socket tester (optional), small Dictaphone (optional), digital camera (optional), maybe a video camera. Possibly a small set of steps to allow you to see into the roof space, possibly a very long surveyors tape measure if you want to measure the grounds or some other means to do it. If you are going to explore messy places, ei roofs, cellars, outbuildings, perhaps a set of DIY disposable overalls, that are large enough to go over your clothes, and a pouch you can wear to carry your wallet etc if you take your jacket off. If an empty house where the water is going to be off, consider taking some wet wipes (scent free from baby section of chemist or supermarket) to clean up after. You may also need a pilot size carry case to carry it all.

Your survey visit

Prior to your visit, identify if you can, any major problems, that the property is not on a flood plain, and look at maps and aerial photos on the web to check what is around.

When you arrive, if you don't know the area arrive early in order to look around the neighbourhood, chat to local shopkeepers about developments in the area, and look at as many local properties as you can for any obvious signs of wide scale problems, such as cracking, subsidence etc.

As you approach the property you are to see, look first at the outer structure, is the roof flat, not bowed, and all walls straight with no bulges or leans. A small pendulum will give you a reference as to what is upright, and if you hold it in front of you, you can see what is upright. The ruler can be held out as a reference to what is straight. 

At this point you will probably meet the agent and owner, and have a quick look around the inside to get an idea of layout and what is on offer. Its worth checking this against the sales particulars, so you know what room is what, and perhaps get a general impression. A look at the bathroom and kitchen, and a quick look for obvious problems. From this point you will probably have some idea as to if this is a property that might be of interest, if not, then be pleasant to owner and agent for showing you around, and move on to another property.

Assuming that this may be of interest lets move on to a closer look.

Logically you will have been shown around the inside then the garden or outside so we will start again outside. Now we have access all around the property.

We start from the top, with roofs and chimney stacks. The binoculars are used for this, we want to see if there are signs of any problems, slipping slates may indicate nails have rusted away and the roof needs replacing, a badly sagging tiled roof may indicate that concrete tiles too heavy for the supporting structure have been used. Check lead flashing, pointing in chimney stacks, and any other signs of problems. If the property has a new roof then that is a bonus.

Next look at guttering and down pipes, what are they made of, are they complete, do they look as if they and possibly the boards they are joined to may need replacing.

Walls next, are there are long cracks, if so you could have subsidence or foundation problems, perhaps not a good risk and a professional structural survey would be required before you made an offer. Look at the mortar between bricks or stones, is it in good condition, is it soft, check with screwdriver, does it need repointing.

Look next to see what damp proof arrangements or damp course there is, is there signs of a damp course, is it above the ground level all round. Is there signs of small holes and plugs, if so a  chemical; damp treatment may have been done and you will need to check with the owner later about what guarantee it has and if the company providing it is still in business. Are there air bricks allowing ventilation. If so are these in good condition and are the holes large enough to allow rodents in.

Window fames next, are they all in good condition, and solid, again you can use the screwdriver to test any soft spots. Similarly look at exterior doors and door frames.

While outside look at fences and gates, drive, and other features looking for major problems.

We now move inside. Is the ground floor a solid floor, wood, or a mixture. Wooden floors are nice, but rot is a real possibility,  look around the edges for any sign of warping, shrinkage (gaps) or covering discoloured as in the case of damp. You can also sometimes pick up the smell of dry rot, which can be an expensive problem to overcome. Older slab floors may need relaying with a damp course added.

Look for damp anywhere, this may indicate a major problem or the damp course has been bridged.

Moving upstairs look out for damp high up, this could just be condensation and poor ventilation, but could be a sign of a leaky roof or problem of gutters. Damp near chimney breasts can be poor flashing or a blocked off chimney that has no ventilation and not been caped. Look out for sloping or problem floors.

Take a look into the roof space, can you see light, if its slates a small amount is normal, but major amounts and you have problems. With slates also look at the small lathes, are they rotten or infested with woodworm, (holes and dust). Is the loft insulated, boarded, is there enough head room for another room up here. 

It is worth a note here. Problem properties I would suggest you should get looked at by a professional structural surveyor, before making a decision to take them on.  The cost of undertaking this, the time and a margin of profit should be allowed for within the price. If the price is right then you may still be interested.

At this point you need to go away and think about the property, unless the asking price is a real bargain, in which case perhaps you should get an option.

Avoid being persuaded to make an offer at this stage, others may be looking at it, but another day wont realistically make any difference in the vast majority of cases.

Away from the property you need to consider all the facts carefully, the options for it, the market you have for this and many other things. 

The snagging visit

The next visit, is to look in greater detail, often will be with the owner, and is for identifying all the problems. You may also be looking this time at possible changes you have thought may be able to be done to the property.

Every property will have some items that are less than perfect, and a snagging list should include all the ones you can see. This means that when you look around a property, you will, in addition to looking for major problems we covered above under surveying, also be looking for every minor detail. 

Experienced 'buy to let' buyers will open every window, every door, looking for problems, check every lock, bolt and catch, look closely at every electrical outlet, socket and switch, test all lights and sockets, check all plumbing, check sink tops and worktops to see how they are fixed down............. You can see this is quite detailed, before looking at decoration, and what is outside from fences to drives.

You also have to identify what else you feel you would need to do to the property before you could let it, this may include putting in a new boiler, changing heating systems, kitchen or bathroom changes, changes to windows, doors or addition of an alarm system. Redecoration, landscaping............

When you first enter a room, you may get an idea as to its general state, however if it has furniture and clutter, much may be hidden. You are likely therefore to need to move furniture about to see walls and carpets behind or under them, some of course will just be too heavy.

As problems are discovered, you list them, and at the end you need to sit down with the owner and check exactly what is included, i.e. carpets and curtains, and any features that they may be going to take with them. Next go though the list with them to see if they want to undertake all the repairs you have identified, or if your offer should reflect that they need doing and the rent you will lose while this is being done.

You may find, if you are not very diplomatic, that they can take offence to you telling them their home is a dump, and they probably have not realized that quite so much needs doing. This is where the experienced negotiator scores, in that they can read people, and move the discussion and price to the optimum point, while allowing everyone to feel that they did very well out of it. Many negotiators will have developed through experience techniques, and know just how to diplomatically explain the situation. You will have seen on TV programmes where people who have not been able to sell their homes, they have called in so say experts, and been told things they did not like, often with the lady of the house, bursting into tears and rushing out of the room. Clearly they are not in the best frame of mind to negotiate anything then, and you would, without a TV crew with you, be told to leave. 

You may also find out how much they allowed for in coming up with the asking price towards these items. It is important that you do show them and explain the sort of costs you envisage to get it all put right. This would not include property enhancement work that you would do to add value to the property. 

You should also be able to understand from talking to them why they wish to sell and how urgent the sale is. You may also get some idea as to how firm they are likely to be at getting something near their asking figure.

You will also need to determine what the property would be worth with all the problems put right. If you don't know the area you may need to get information on this from other sources.

At this point you have two possible routes, sound them out directly on an offer price, or go away and think about it and make an offer through the agent. Once they accept an offer insist they take it off the market and stop showing others around. I would not go along with the idea that you should pay more for this.

You may decide to start with an opening offer, and see where that gets you. If it is turned down to increase it slightly, however from the start you must know what the maximum amount you are prepared to pay and never go over this. There are different theories as to if you should say when it is your final offer. Some suggest you should so they know you will not go higher, others that you should not as the agents will in future know that you will increase the offer until you say its your final one. If you decide to make a single and final offer directly to the owners on your visit, then perhaps its best to say so, explaining that for what you want to do, this is the maximum price it makes economic sense for you to buy it. 

You are going to see many properties and make a number of offers before you get the deal you want. You have to be prepared to walk away from any deal that is not right. This means a lot of research, time, travelling and negotiating will go into each purchase that is completed. A lot of properties that you might have liked will also slip through your fingers. You should not underestimate the amount of time this will take, and if you have a number of buys to make the task is multiplied. 

If you are working as a a part of a group, then decide who is going to do the buying and leave them to it, the process is hard enough without having to organize a day out for others to look it over prior to the purchase. It may be that you, as a group, decide your buying team should not be one individual but two or three, any more and you will find that they not only get in each others way, but that you end up with both conflict and people taking sides in relation to the purchases instead of working as a single team. Another approach is to have several people who can do the first visit to share the load, and then bring in your buyer for the snagging visit and to sort out the offer. The person you choose to be the buyer does not have to be the most knowledgeable about property, but it is essential that they can negotiate well and can get on with all people, and of course fully understand your model and implications of any increase in price.

If you can't handle this fully, then perhaps you should look at getting someone else to do it for you. It could be another person in buy to let who is able to buy clever, and has a history of getting property well below valuation, or it could be by using one of the clubs services, finding or franchise. The finding service costs just 3%, and saves you hunting, surveying, snagging, and even making offers and the negotiation process, and would expect to save you 15% or more. 

If all this sounds like too much hassle and you just want to do what others you know, who have got into buy to let have done, and just buy property, and to try hard to get any suitable property you find,  then you should accept that the price you will be getting it at, will be about the market price, so you will not have the inbuilt equity available from clever buying. In a rising market, you may within a year make this amount, but if things slow down, then it could take several years to make the same amount as you could by clever buying.

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