Survey before offer

[roundthehorn]

I have been in Australia for the last 25 years and have bought and sold 3 houses here. The way it’s done is if we like a property we get a building and pest inspection done and then make an offer/bid, if that’s accepted the contract is signed, deposit paid and the settlement happens within the next 30 to 60 days and if the buyer can’t complete then his deposit is forfeited.
I’m looking to buy a property in Surrey and have found a place I’d like to offer on but the agent is telling me I have to offer before an inspection can take place and that will be organised by the conveyancer, the process from offer to completion could take up to 4 months and at any time either of us can change our minds/amend the offer/pull out for any reason. How on earth does anyone ever complete on a property purchase? How can I make an informed offer if I don’t have a good idea on the structural integrity of the building?
Is this really the way things are done or is the agent trying to pull the wool over my eyes?

Yes it's the way things are done (in England). How could it possibly benefit the agent to lie to you about the process?

You make an initial offer. If it's accepted, you arrange a survey to make sure you're still happy to go ahead with the purchase/are aware of any potential issues. If any issues are uncovered which you feel materially affect the value of the property (or at least what you're willing to pay for it), then you either amend your offer (and it's accepted) or you pull out.

It's not the best system, but it's the way it is and yes, 4 months is fairly typical.

I suggest you Google house buying in England.

Yes that’s the way it happens. You make an offer on what you think the house is worth, if issues are found during the survey then you are free to try renegotiate price.

The only thing they've got wrong is the survey is not organised by the conveyancer, it's down to the individual buyer to appoint a surveyor and what type of survey they want.

Generally the way it works is that you offer based on the visible condition of the property. Then if something unexpected comes up in the survey you try to negotiate the price down.

Until contracts are exchanged (which happens very late in the process) nothing is legally binding and everything can (in theory) be negotiated.

If something unexpected comes up on the survey, you can renegotiate the price.
But, yes. You have pretty much described the (far from ideal) house buying system in England.

Yep that’s how it work here. It’s common renegotiate price if there are significant issues in the survey.

I would strongly recommend getting a full structural survey done so that you are well informed about the house.

If anything major / unexpected turns up in the survey it's very common for another conversation on price to be had at that stage.

Yeah, I'm afraid this is normal practice in England. In Scotland, the seller has to commission a Home Report which is available to all prospective purchasers, a survey that covers the condition, along with an EPC report and a vendor questionnaire that asks various useful things such as about rights of way, change of boundaries, recent flooding/claims, etc.

Last I heard, average offer to getting keys time was 4 months 3 weeks. During manic house moving periods (which we are not currently in), it takes six months.

UK surveys: best practice would be to find a surveyor registered with the RICS (Royal Institute of Chartered Surveyors); a level 2 survey is generally recommended for properties 120 years old or younger, a level 3 for anything older than that, or anything that's had extensions or significant internal alterations. If you're buying a new build, you want to instruct a snagging specialist, not a surveyor.

How on earth does anyone ever complete on a property purchase?

Well, around 30-40% of house purchases fall through atm, so you're quite right to ask that question. It's absolutely daft beyond belief.