Beginner’s Guide To a Home Report
What Does A Home Report Consist Of?
- A Single Survey
- An Energy Report
- A Property Questionnaire
To help you understand what each of these entails, here’s a breakdown for you:
The Single Survey
This is designed to assess the condition of the home in question, providing information on the roof, walls, plumbing, fittings, and more. A valuation is also included, alongside an accessibility audit for those with specific needs.
The Energy Report
Knowing a property’s energy efficiency rating is crucial for buyers when looking to buy a home. The higher the rating, the more energy efficient a home is. This meaning lower energy costs which is often a big incentive when purchasing a new home.
The Property Questionnaire
This contains additional useful information on the property, including parking arrangements, alterations, whether there are extra costs, and more. This gives buyers a greater insight into the home, helping them to make a more informed decision on a home.
Despite many being reluctant to make use of home reports initially, buyers eventually embraced when they saw the many benefits of them. Although a mortgage valuation isn’t required under the home report, it is a prerequisite for buyers to get a mortgage on a property.
Though not compulsory, mortgage valuations are offered by professionals who specialise in home report preparation. Reputable companies recognise the importance of mortgage valuations, which are prepared with the buyer and seller’s best interests. Without a mortgage valuation, sellers need to commission a separate home report, which costs additional time and money, but can cost a sale too.
What Should Sellers Consider When Selecting a Surveyor to Prepare a Home Report?
- Local Knowledge: The surveyor of choice will be knowledgeable and experienced.
- Pricing: You get what you pay for. Obtaining a cheap report is risky, and can crucially effect the sale of your home. Well-trained professionals come at a premium, but are well worth it considering the importance of your venture.
- Independence: Surveyors must remain independent of sellers and buyers, to avoid influence/bias.
- Reliability: Mainstream firms are renowned for their reliability, particularly through their strong relationships with surveyors and solicitors.
- Quality: Fully qualified surveyors are equipped to provide comprehensive reports. They are trusted by all parties involved, which adds value to the selling process.
How Much Does It Cost?
Home reports generally cost between £500 and £700, and sellers are entitled to charge buyers a small sum for the report. Though sellers can arrange for buyers to cover the cost of a survey upon completion, there is no legal requirement to do so.
Who Receives the Home Report?
A home report must be sent within nine days of request. Anyone who is interested in buying a home must receive a copy, however if a seller determines the buyer isn’t serious or can’t afford the property, they may decide not to send a report. If you put a property up for sale, you must provide a home report for potential buyers, though there are exemptions.
When a home report highlights problems, sellers can fix the issues under their own volition, but aren’t required to do anything. Sellers must however understand how defects can affect the price they get for their property. This is advantageous for buyers, who prior to home reports were exploited through insufficient honest information being available. Sellers can ask their surveyors for advice regarding whether it’s worth correcting problems at hand.
I hope you have found this article informative, and have a better understanding of how home reports benefit buyers and sellers. If you have any questions or would like to become part of the conversation, please comment below or connect with us here.