What are Vendors Surveys?
Vendors surveys are a type of technical due-diligence survey commissioned by commercial building owners prior to selling.
When conducted by independent building surveyors, these surveys can be incredibly beneficial, as they are guaranteed to be unbiased, meaning they can be relied upon by buyers as well as vendors, building transparency and speeding up the overall buying process.
Vendor Surveys benefit potential purchasers by giving them access to in-depth information regarding the condition of a building, as well as reassuring the vendor that buyers will not come across unexpected issues affecting the sale of the property.
Vendor surveys are known to be highly beneficial for commercial property transactions, as they provide both parties with greater security and control over the transaction.
What do Vendor Surveys involve?
Each vendor survey is unique, and the reports are tailored to the needs of the vendor, but they usually include reviews and assessments dedicated to ensuring that properties comply with relevant laws and regulations, as well as identifying potential building defects and electrical, mechanical, and environmental issues, amongst other things.
Vendors may wish to review all technical and legal documentation, for instance, request a full report on the internal and external conditions of their property, or obtain an assessment of energy performance, building services systems, and deleterious materials.
For Vendor Surveys to be successful, the scope of the assessments carried out should align with the type of property in question and its risk profile – it is therefore helpful for the seller to ask themselves what exactly the buyer might want to know about the property prior to kickstarting the process and establish a clear scope.
As a general rule of thumb, it is worth ascertaining whether specialist reports are needed, such as when a building has a particular feature that may require specialist equipment or the assistance of a team with specific skills.
If relevant yet outdated reports or documentation are available, a Vendor Survey may involve the completion of the same reports to identify whether any substantial – and potentially concerning – changes have occurred throughout the years.
What are the benefits of Vendors Surveys?
There are a plethora of benefits that make Vendors Surveys particularly valuable:
- Speeding up the sale process
When it comes to property transactions, we understand that speed is key. The marketplace is reliant on quick negotiations and transactions, and buyers can confidently push themselves ahead of the competition thanks to the extra layer of assurance provided by Vendor Surveys. Vendor Surveys can also help avoid separate inspections taking place such as where there’s more than one prospective buyer, further reducing the time needed to complete a transaction.
- Maximising the value of a sale
Having access to the information provided by Vendor Surveys can help ensure buyers are fully familiar with the building being inspected, allowing them to complete any extra work that needs to be carried out to correct deficiencies and therefore extracting as much value as possible from the sale.
- Highlighting issues at an early stage
Investing in Vendor Surveys can help owners take remedial steps early in the sale process to make sure that any existing problems are taken care of in time, saving a considerable amount of money in the long-term – particularly where major deficiencies are present, which could cause potential buyers to walk away from a deal.
- Building trust and credibility
Taking the initiative to utilise a Vendor Survey conveys transparency and reliability, demonstrating to buyers that steps have been taken at an early stage to ensure the property is fit for sale. Similarly, where an independent Vendors Survey has already been conducted, there is no need for buyers to conduct individual surveys and for vendors to confirm their findings, establishing a mutual relationship of trust between both parties.
Why you should enlist the help of Chartered Building Surveyors
Provided they are conducted properly, Vendor Surveys should be starting point of any property sale, allowing for better decision-making, and making both parties involved feel secure throughout the process of negotiation.
Independent building surveyors are best positioned to offer high-quality, unbiased Vendor Surveys capable of benefitting buyers and sellers alike.
As professional chartered building surveyors with years of experience delivering Vendor Surveys as well as a number of other bespoke services for both property owners and investors, Arc can offer the help you need. Simply get in touch to learn more!