Level 2 survey with valuation: when is it worth adding?

Adding a valuation to a Level 2 Home Survey is worth it if you are buying with cash, worried you might be overpaying, buying in an uncertain or unusual market, or likely to renegotiate after the survey. It gives you an independent opinion of market value and an insurance reinstatement cost, written for you rather than for your lender.

Key points

• The RICS Level 2 Home Survey comes in two versions: survey only, or survey with valuation.
• The valuation adds the surveyor's opinion of market value and an insurance reinstatement cost.
• It is particularly useful for cash buyers and anyone unsure about the price.
• It does not replace your lender's mortgage valuation.

What is a Level 2 survey with valuation?

The Level 2 Home Survey is the mid-level survey in the RICS Home Survey Standard, suited to conventional homes in reasonable condition. It replaced the old HomeBuyer Report, which always included a valuation. Under the current standard, the valuation is optional.

If you choose the version with valuation, the report includes:

• The surveyor's opinion of market value, taking into account the condition findings and local comparable sales.
• An insurance reinstatement cost, an estimate of the cost of rebuilding the property, to help set your buildings insurance.

Everything else in the report, including condition ratings and advice, is the same.

When is it worth adding a valuation?

You are a cash buyer

If you are not using a mortgage, there will be no lender's valuation. Without one, you may have no independent check on price at all. Adding a valuation gives you that check before you commit a large sum.

You are worried about overpaying

In competitive markets, or where you have offered above the asking price, an independent opinion can reassure you or warn you that the price is stretched.

The property is unusual

Homes without many comparable sales, such as unusual styles, rural homes or properties with land, can be harder to price. A local surveyor's view on value can be valuable.

You expect to renegotiate

If the survey uncovers defects, a valuation that reflects them strengthens your case when renegotiating after a survey. You can show both what is wrong and the surveyor's view of what the property is worth in that condition.

You want a reinstatement figure for insurance

Buildings insurance should be based on the rebuild cost, not the market value. A reinstatement cost from your surveyor gives you a sound starting figure.

When might you skip it?

You might choose survey only if:

• You are buying with a mortgage and are comfortable relying on the lender's valuation for price.
• The property is a standard type with plenty of recent comparable sales nearby.
• You are confident about value and mainly want to understand condition.

That said, remember the lender's valuation is for the lender. It confirms there is enough security for the loan, not that the price is right for you. See mortgage valuation vs survey for the full picture.

How is the surveyor's valuation different from the lender's?

What about valuations with a Level 3?

A Level 3 Building Survey does not include a valuation as standard, but many surveyors will add one for an extra fee. If you are buying an older or more complex home and want a value opinion, ask when booking. Our valuation page explains the options, and the Level 2 vs Level 3 guide helps you choose the right level of survey.

How much does a valuation add?

Level 2 surveys typically cost around £400-£900, depending on value, size and location. Adding a valuation increases the fee. The amount varies between surveyors, so compare the price of both versions before you decide. For a typical purchase, the extra is small compared with the potential cost of overpaying.

Who can provide the valuation?

Valuations should be carried out by a suitably qualified and regulated surveyor. RICS members who provide valuations are typically RICS Registered Valuers. If you are using a surveyor regulated by another body, such as the RPSA, ask what valuation they can provide and on what basis. Our guide to RICS vs RPSA surveyors explains the difference between the two.

What if the valuation comes in below the price you offered?

A valuation below your agreed price is not unusual, especially in a fast-moving market. It does not automatically mean you should walk away, but it is a signal to pause and think. Practical steps include:

• Ask the surveyor how they reached the figure. They can usually explain which comparable sales they relied on and how the condition findings affected value.
• Check the condition findings. If the valuation is lower because of defects, get quotes for the repairs so you can put a figure on the gap.
• Talk to the agent. Share the relevant parts of the report and explain why you think a lower price is fair.
• Consider your own plans. If you intend to stay for many years and the gap is small, you may decide the home is still right for you.

Whatever you decide, it is far better to have this information before exchange than to discover later that you paid more than the home was worth. Our guide on whether to pull out after a bad survey covers the bigger decisions.

If your lender's valuation also comes in low, our guide to down valuations runs through your options. A mortgage broker such as Option Finance can tell you whether another lender is likely to see it differently.

Is a valuation useful when selling?

Sellers sometimes commission a valuation alongside a pre-sale survey to help set an asking price. Estate agents also offer valuations, but these are marketing appraisals rather than formal valuations. See pre-sale surveys for sellers.

Get a Level 2 with valuation booked

If you want both a condition report and an independent value, ask for a Level 2 with valuation. Book A Surveyor finds a regulated local surveyor, agrees a fixed price, arranges access with the estate agent and takes payment, so you get a booked survey rather than a list of quotes. See how it works or get a fixed-price survey booked.

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