If you’re selling your property in Scotland, you are legally obliged to have a full home report survey conducted. The home report is an essential tool for verifying the overall condition of the house so buyers can be confident that they are making a good investment with their money. It provides full transparency of a property and can be used by both buyers and sellers to negotiate a fair price for the house.
What Is A Home Report?
Since the implementation of the home reports in 2008, many Scottish homeowners have been asking themselves: what is a home report?
A home report is a comprehensive document that outlines the condition of the property for sale. It is made up of 3 reports: A property questionnaire, a single survey and an energy report.
The property questionnaire is a simple document that homeowners fill in to outline things as property alterations, central heating service plans, planning permission, parking facilities, property liabilities and the like.
A single survey is a detailed evaluation of the condition of the property undertaken by an independent evaluator. The property will be given a rating from 1-3 (1 = no immediate repairs, 2 = repairs will be needed in the near future, 3 = urgent repairs are needed now) based on the condition of the walls, roof, plumbing etc.
The energy report is conducted to show how efficient the energy use of the building is. Factors that affect the result include the insulation levels of the walls, windows and ceiling as well as the upkeep of the boiler. Your property will be rated between A (very efficient) and G (very inefficient). This information will be used to estimate the costs of running the property.
Home reports are very quick and easy to conduct and you’ll sometimes see the results of your survey on the same day that it is carried out.
Who Pays For A Home Report?
It is the property seller’s obligation to provide a property report and therefore they are required to pay for the home report. The cost of the home report is entirely down to the homeowner and the estate agent is not obliged to contribute towards this expense.
How Much Will A Home Report Cost?
The cost of a home report can be off-putting to sellers who may be struggling with the financial burden of selling their property.
Home report costs vary from city to city and between providers but as a general rule of thumb you can expect a home report to cost about £300 + VAT for a house valuing at £100,000. For every additional £100,000 valuation, you can expect to pay an additional £150 + vat for your home survey.
However, a home report is a legal obligation and buyers must be in a position to present their report to potential buyers within 9 days of them requesting to see one. Failure to comply can result in a £500 fine.
Ensure you get multiple quotes with price guarantees from different providers to ensure that you get the cheapest home survey you can.
Who Pays for a Home Report Refresh?
It’s important to note that home surveys do not have a shelf life and do not have to be routinely refreshed, however, as a general rule of thumb, it is a good idea to go to market with a home report less than 12 weeks old. The condition of your property may have changed in the 12 weeks since you had the survey conducted and if unearthed later down the line, can cause a sale to fall through. If your survey passes the 12-week mark while on the market, a buyer may request that you refresh your home report. If this is the case, it will be up to you both to negotiate who will incur this cost. Typically, it will be the seller that pays for this cost as a gesture of good will to the buyer and to ensure that the sale goes ahead smoothly.
If you are looking to get a home report for your property, get in touch today.