What is a Home Report and do you need one to sell your house?

The Home Report was introduced by the Scottish Government in 2008. It is designed to provide better information about the condition of the property to sellers and buyers. It also addressed the problem consumers faced of multiple surveys and valuations being carried out on the same property prior to offers being submitted. The Home Report in Scotland includes requirements for selling properties, such as the Property Questionnaire and Energy Report.

Before a property can be exposed to the market for sale, the seller must commission a Home Report and make this available for potential buyers. The Home Report is prepared by chartered surveyors who ensure accurate property assessments and legal compliance.

What is a Home Report?

A Home Report is a document required by law for every seller of residential property in Scotland. It provides essential information to prospective buyers about the property’s condition, value, and energy efficiency. The report is prepared by a Chartered Surveyor and is a crucial part of the home buying process in Scotland. By offering a comprehensive overview of the property, the Home Report ensures that buyers are well-informed before making an offer, thereby facilitating smoother transactions.

Components of a Home Report

A Home Report consists of three main components: Single Survey, Energy Report, and Property Questionnaire. Each of these sections plays a vital role in providing a complete picture of the property to potential buyers.

Single Survey

The Single Survey is a detailed report on the condition and value of the property. It includes an assessment of the property’s structure, internal and external features, and any significant defects or issues. Additionally, the survey covers an audit of accessible features, which is particularly useful for older and disabled people, as well as parents with young children. The Single Survey can only be compiled by a Chartered Surveyor, ensuring a professional and thorough evaluation.

Energy Report

The Energy Report provides an energy efficiency rating and assesses the environmental impact of the home in terms of carbon emissions. It offers recommendations on how to improve the property’s energy efficiency and reduce emissions, helping buyers to compare energy costs between homes. This section of the Home Report is also compiled by a Chartered Surveyor, guaranteeing an expert analysis of the property’s energy performance.

Property Questionnaire

The property questionnaire is an important element of the Home Report but buyers should exercise caution when reading this part of the report. In most instances, completion of this part by the seller is very straightforward. However, buyers should be aware that sometimes sellers will not be as transparent as the buyer might expect in answering some of the questions asked in this part of the Home Report. 

Buyers should make their own investigations and ask relevant questions of the seller or the seller’s agent if they have any suspicion that the answers given in the owner questionnaire are not as frank as might be expected.

What is the Condition Report and why is it important?

The condition report within the Home Report provides a list of the different elements of the house, both externally and internally. It provides a score against each of the items on the list. It will score 1 if the condition of that particular item is satisfactory. It will score a 2 where there are likely to be repairs needed in the near future. If the item on the condition report is a 3, it means that repairs are required imminently.

When you decide to buy a house, you need to set a budget. Much of that budget will deal with your deposit and any improvements you intend to carry out. The condition report will help you work out whether there are repairs or remedial work you need to carry out to the property and the likely timeframe within which the works will be necessary. It may also help you negotiate the price with the seller or help persuade the seller to carry out the work before you buy the house.

When you are looking to buy a house, make sure you factor in any repairs highlighted in the condition report before you submit your offer.

The Valuation

If the buyer is applying for a mortgage to help fund the purchase of the property, they can usually use the valuation contained in the Home Report. This is the surveyor’s report on the value of the property that a lender can rely on. Most lenders accept the valuation but, in some instances, the buyer may wish to commission their own valuation. They may do this because they believe the value is higher than that shown in the home report or their particular lender might not accept the report from the surveyor who prepared the Home Report.

In any event, most of the time, the inclusion of the valuation report as part of the Home Report means that all buyers have access to the same information. This tends to provide a benchmark against which prospective buyers can gauge how much they will have to offer over the valuation to succeed in their purchase of the property.

Why is a Home Report necessary when you are selling your house?

It is illegal to sell your house on the open market in Scotland, without a Home Report. The home report cost typically ranges from £285 to £450, influenced by factors such as the size, location, and condition of the property. You will still need a Home Report even if you decide to sell the house yourself, without using an estate agent. 

Another benefit of a Home Report is that surveyors with extensive local knowledge ensure an accurate valuation assessment.

However, if you fail to obtain a Home Report when attempting to sell your house, you can be fined £500.

Benefits of a Home Report

A Home Report provides numerous benefits to both buyers and sellers. For buyers, it offers transparency and ensures access to crucial information about the property’s condition and value before making an offer. This transparency helps buyers when making informed decisions and can prevent unexpected issues or expenses down the line. For sellers, the Home Report streamlines the buying process, making it easier to negotiate and complete the transaction. By providing a clear picture of the property’s condition and potential maintenance requirements, the Home Report facilitates smoother and more efficient property sales.

Specialist Estate Agents and Property Solicitors with extensive local knowledge, North Berwick and Dunbar, East Lothian

Our estate agents and solicitors have years of experience and expertise in dealing with all aspects of buying and selling property in North Berwick, Dunbar, across East Lothian and throughout Scotland.

If you are thinking of selling your house and are looking for an honest, straightforward appraisal of its value, please get in touch with us.