The Home reports is a legal requirement for homes marketed for sale in Scotland. Home reports were first introduced by the Scottish Government in 2008 in an effort to provide buyers with fuller information regarding the value and condition of a property and to avoid buyers paying for multiple surveys over one property. It is the sellers’ responsibility to provide a home report and all properties (some properties are exempt, such as New builds) being listed on the open market must make a home report available to prospective buyers.
The home report is comprised of three components:
1. Single Survey
This is carried out by a chartered surveyor and provides an assessment on the condition of both internal and external factors of the property. All items receive a Category score ranging from 1 – 3 depending on the level of repair required. Category 1 indicates no repairs are considered required; Category 2 indicates that future repairs are required but estimates recommended and a Category 3 implies that urgent repairs have been identified and should be undertaken immediately. The survey provides a valuation of the property which reflects the current condition of the property together with a reinstatement value.
The Survey also includes a Mortgage Valuation Report which is utilised by a buyers’ lender for the purposes of their mortgage application (depending on the lender).
There is also a section included that provides specific information regarding the accessibility of the property.
2. Energy Performance Certificate
This is also dealt with by the surveyor and rates the energy efficiency and environmental impact of the property from A – G. The certificate provides a band rating against the current Scottish home average which is band D (61). The report also recommends actions you can take to save on costs and make your home more energy efficient.
3. Property Questionnaire
This document is completed by the seller, or on behalf of the seller. The questionnaire includes sixteen questions all pertaining to the property itself under the sellers’ period of ownership. The questionnaire will include information regarding the council tax band, alterations to the property, utility providers, factoring arrangements and any local authority notices that affect the property.
Once the above three components have been finalised, it will be uploaded into one full document which prospective purchasers are able to download online or request directly via your estate agent.
How much does it cost?
The cost of a home report varies dependent on the valuation of the property. The cost can range from approximately £350 at the lower end of the market to over £900 for a property valued £1m+. To find out what your property is worth call our team on 0131 200 1234 and we would be happy to provide a free, no obligation valuation or complete our valuation request form.
For further information regarding home reports visit RICS.