If you are in the process of buying or selling a home, you will likely have heard about the home report. A home report is a document that tells buyers everything they need to know about a property.
In this blog, we will tell you everything you need to know about the report. We will cover what is included in the report, and the differences between the process in Scotland, and the rest of the UK.
Are Home Reports a Legal Requirement?
Home reports are a legal requirement for properties in Scotland. However, a home report in Scotland is not required for new build properties. They are not a legal requirement in England and Wales but are widely recommended.
A home report also benefits sellers. It allows the seller to highlight the selling points of a property. The report gives buyers peace of mind that the property is in good condition with no hidden issues. The home report provides the property’s valuation, which is accepted by all mortgage lenders.
In England and Wales, once you have an offer accepted on a property, you can arrange for a Homebuyers report to take place. We would recommend buyers arrange a house survey if the property does not already have one. Although it may seem an unnecessary expense, it could save you money in the long run if the survey reveals extensive damage.
In England and Wales, to have a mortgage accepted, you will normally have to arrange a basic valuation report. If any, this report will note the presence of damp in the property. In this scenario, the buyer will be advised to arrange for a specialist damp and timber surveyor to conduct a damp survey.
3 sections of Home Report
The home report is split into three main parts – a Single Survey, the Energy Performance Certificate section, and a Property Questionnaire.
Single survey
This survey is conducted by a chartered surveyor. The surveyor must be a member of the Royal Institution of Chartered Surveyors (RICS). The surveyor will report on the condition of the property, and note any repairs that are needed. The survey will be thorough, with the surveyor assessing every aspect of the property. This includes the condition of windows, gutters, walls and the roof. Every component assessed in the single survey will be split into categories rated 1-3:
Category 1 – No work required
Category 2 – Repair will be required in future
Category 3 – Urgent repair immediately required
Energy Performance Certificate
The EPC refers to the energy efficiency of the property. This section of the home report is essentially an in-depth energy report. It measures the energy use in the property. It gives the buyer an indication of how much their energy bills might be. The report includes an estimation of annual energy costs for the buyer.
The energy rating is measured, considering factors such as low energy light bulbs, insulation, solar panels etc. Sellers should consider low cost changes to improve their energy rating, before selling their home.
A positive energy report won’t increase your property’s valuation. However, a property that uses low amounts of energy is more likely to receive multiple offers.
Property Questionnaire
The home report includes a questionnaire covering several different categories. This includes things that aren’t necessary to include in the survey, but is still useful information. These categories include council tax band, work guarantees, planning permissions etc.
How much does it cost?
The home report cost can vary due a number of factors. The size and location of the property can impact the cost. Different surveyors will also charge different prices. The costs can vary between £300-£900.
Final Thoughts
A Scottish home report will always be available to prospective buyers in Scotland. If this report highlights any potential problems with damp or timber in the property, it is advised that you get a further survey carried out by an experienced and qualified surveyor from a property preservation company. This report will highlight any issues with damp in the property and provide recommendations on how to solve any problems.
For more information on damp surveys, visit our property survey page now.