Top Reasons to Survey Your Potential Investment Property

Many lenders insist on a property survey. However, some hard money lenders don’t require this and may use a different approach to appraising the market value. 

However, your potential investment property—especially if it’s a renovation project—stands to make you far less profit if a serious issue is unearthed once you become the legal owner. Indeed, a worst-case scenario could even see you lose money, should a problem be extensive.

This is only one of the reasons why getting a survey carried out is a wise move. Even experienced investors have been caught out by failing to pay what is a relatively small sum for a property survey when compared to the purchase price.

The 4 Top Reasons to Survey Your Potential Investment Property

• 1: Does the legal description match the property?
• 2: Boundaries
• 3: The legalities of potential improvements
• 4: Rights of others over the property

1: Does the legal description match the property?

Descriptions of real estate are notorious for “artistic license”, meaning that over-eager vendors might word things in a way that puts a positive spin on something. While this is, of course, part of the art of selling, if this is taken too far it could be that something is stated that isn’t legally correct. A survey will confirm that the description is accurate or highlight any errors.

2: Boundaries

Knowing the boundaries of the property and the land that it stands on is essential. Are there any potential disputes over where a fence, a driveway, extension, etc. might be? The survey will not only confirm the legal boundaries, but also which property owner has the responsibility for the upkeep of, for example, a fence or wall. All of this information will be detailed on the survey map and report that you’ll be presented with and is a legal document.

3: The legalities of potential improvements

If you intend to renovate and/or upgrade the property, what do you have in mind? For example, where you plan to site a swimming pool could have implications. Even a driveway, walkway, or boundary fence might not be possible in the location you plan. If you’re looking to extend a property or reclassify, say, a garage, cellar, or lean-to into additional dwelling space, then a pre-purchase survey could prevent a lot of heartache further down the line.

4: Rights of others over the property

Are there any rights of way over the property? From a neighbor having access across the backyard to easements for utilities, knowing about these before you sign on the dotted line could make a big difference to the price you’re willing to pay.

Depending on the type of survey you go for, the service can also include a full-on structural assessment. While those in the building trade might be able to carry this out for themselves, for those not privy to such expertise, this should almost be considered an essential pre-purchase requirement. Finding out about structural anomalies once you’ve paid the purchase price and carefully worked out your rehab finances is not a great scenario—and is something that’s almost guaranteed to make the best-laid plans go awry.

In addition, you should be aware of any flood risk and whether or not your property will require an Elevation Certificate. This is a serious consideration—especially in today’s warming climate that’s wreaking havoc on what has historically been thought of as “normal” weather conditions.

As you can see, the case for a land and property survey is a strong one. Novice investors, in particular, should be advised that this is truly a worthwhile expense.

Ready to Explore Your Investment Finance Options? Contact BRRRR Loans Today

Appraisals and surveys are part and parcel of the BRRRR Loans world. When you borrow through us, every loan is agreed on the individual circumstances of the property—we’re well known for our industry-leading approach to responsible yet flexible lending.

This bespoke blueprint is the reason so many property investors, both experienced and those at the beginning of their real estate journey, work with us. We’ve turned the potential into the possible for thousands of investors—and we can do the same for you.

Head to https://www.brrrr.com for more info and call our friendly team today to discuss the art of the possible.