Vendor survey
Vendor surveys are often undertaken by commercial property owners prior to selling a building. They are objective surveys of properties intended to satisfy the due-diligence requirement of potential purchasers, avoiding the need for them to conduct their own surveys.
Traditionally, a Technical Due Diligence (TDD) report would be commissioned, usually by the preferred bidder, during the final stages of a purchase deal. Such reports would often highlight issues relating to the structure, fabric and the mechanical and electrical aspects that would then impact on the price, which would usually have to be lowered in order to prevent the sale from being delayed.
The Investment Property Forum states that 'the most effective way of streamlining real estate transactions is for the intending seller and its advisors to have familiarised themselves thoroughly with the property and its title before putting it on the market'.
Vendor surveys have become increasingly common as they can help to speed up the sale process. In particular, when the property sector was hit hard by the economic downturn of 2008 many companies trying to sell assets began to commission surveys to speed up the sale and as a means of getting an edge over competitors.
Vendor surveys can include:
- A review of relevant technical and legal documentation.
- A full internal and external survey.
- A survey of, and advice on, building services systems.
- An assessment of deleterious materials.
- An assessment of environmental and energy performance matters.
While vendor surveys aim to facilitate the negotiation and transaction process, they have come under criticism from some property companies, funds and owner/occupiers. There has sometimes been a perception or experience of poor quality or biased reporting which, regardless of how professional the survey undertaken may be, is understandable since the vendor's overall aim is to achieve a sale of the property. As a result, vendor surveys conducted by independent surveyors as opposed to 'in-house' surveyors have become increasingly popular as they are seen to be a neutral party to the transaction.
Some of the advantages of conducting a vendor survey include:
- By highlighting issues at an early stage, the vendor has more time to take remedial steps which could save money.
- Both parties to the negotiation are better informed at an earlier stage, helping to establish trust and better decision-making.
- The need for separate inspections by multiple prospective purchasers can be avoided.
- The need for the vendor to conduct their own survey to confirm the findings of a prospective purchaser can be avoided.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
- 3D laser survey.
- Building pathology.
- Building survey.
- Building use studies (BUS).
- Caveat emptor.
- Defective premises - liability and measure of damages.
- Development appraisal.
- Energy audit.
- Ground investigation.
- Home information pack HIP.
- Home report.
- Homebuyer Report.
- Property valuation.
- Site appraisals.
- Site surveys.
- Soil survey.
- Surveyor.
- Technical due diligence for development sites.
- What is a valuer?
[edit] External references
- Property News - Vendor surveys
- Investment Property Forum
Featured articles and news
Top tips and risks to look out for.
Retrofit of Buildings, a CIOB Technical Publication
Pertinent technical issues, retrofit measures and the roles involved.
New alliance will tackle skills shortage in greater Manchester
The pioneering Electrotechnical Training and Careers Alliance.
Drone data at the edge: three steps to better AI insights
Offering greater accuracy and quicker access to insights.
From fit-out to higher-risk buildings.
Heritage conservation in Calgary
The triple bottom line.
College of West Anglia apprentice wins SkillELECTRIC gold.
Scottish government launch delivery plan
To strengthen planning and tackle the housing emergency.
How people react in ways which tend to restore their comfort.
Comfort is a crucial missing piece of the puzzle.
ECA launches Recharging Electrical Skills Charter in Wales
Best solutions for the industry and electrical skills in Wales.
New homebuilding skills hub launch and industry response
Working with CITB and NHBC to launch fast track training.
Building Peoples Network of Networks
Amplifying voices and giving support to people from diverse and under-represented groups in construction.
Experiences of discrimination and sexual misconduct rife
Reveals ARB research into architectual workplace culture.
About the 5 Percent Club and its members
The 5% Club; a dynamic movement of employers committed to building and developing the workforce.