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
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Many resources for visitors aswell as new features for members.
Using technology to empower communities
The Community data platform; capturing the DNA of a place and fostering participation, for better design.
Heat pump and wind turbine sound calculations for PDRs
MCS publish updated sound calculation standards for permitted development installations.
Homes England creates largest housing-led site in the North
Successful, 34 hectare land acquisition with the residential allocation now completed.
Scottish apprenticeship training proposals
General support although better accountability and transparency is sought.
The history of building regulations
A story of belated action in response to crisis.
Moisture, fire safety and emerging trends in living walls
How wet is your wall?
Current policy explained and newly published consultation by the UK and Welsh Governments.
British architecture 1919–39. Book review.
Conservation of listed prefabs in Moseley.
Energy industry calls for urgent reform.
Heritage staff wellbeing at work survey.
A five minute introduction.
50th Golden anniversary ECA Edmundson apprentice award
Showcasing the very best electrotechnical and engineering services for half a century.
Welsh government consults on HRBs and reg changes
Seeking feedback on a new regulatory regime and a broad range of issues.
CIOB Client Guide (2nd edition) March 2025
Free download covering statutory dutyholder roles under the Building Safety Act and much more.