If you are selling in Scotland, home reports are compulsory for almost every property listed for sale. Are home reports in Scotland good or bad? It’s a hot topic for discussion.
They are not a requirement in England, but you may be looking to buy a property here in beautiful Scotland. You may find my Home reports in Scotland good or bad? super useful.
Good points of Home Reports
- Transparency A home report gives a buyer and seller full transparency on important areas. Firstly, the condition of the property and secondly, the market valuation. There is ‘nothing to hide’ in these regards and everything is outlined within the home report itself.
- Informative A surveyor cannot possibly inspect every small detail of a property. But they can offer an inspection and comments on all major sections including the roof, internal condition, outbuildings etc. A lot of a surveyors report is visual, so they will not lift up floors or carpets and wiring and heating is not tested. The report is certainly informative enough for a buyer to help them decide if the property is for them or not.
- Clarity on value Home reports in Scotland confirm the market value of the property. A potential buyer will base all their decision making around this market value. Especially when considering how much they are prepared to offer you. It also offers clarity to the seller, as its important to understand the value of your home. You can then manage your expectations.
Bad points of Home Reports
- Cost You will have spent weeks getting your property ready to market which will have cost you money. Then you are told the cost of home reports in Scotland. Take a deep breath! They range depending on the anticipated value of your property. The lowest will be around £400 inc vat and then high valued homes can pay anything up to £2,000 inc VAT.
Surveyors often want paid upfront before they visit. They are a big cost so account for this when budgeting. Read all about the Cost of Home Reports in Scotland
- Out of date Contrary to many beliefs. Once on the market your home report does not have an ‘expiry date’. However, buyers will use the home report to obtain a mortgage and mortgage lenders will not use a home report over 3 months old.
When you accept an offer, and it is over 3 months old, you will be obliged to ‘refresh’ the home report . Its a reduced fee.
Normally around a third of the original cost, and they re-visit to check everything remains the same.
- Off market If you choose to rest your property from the open market, you may require a new home report before you go back to the market. If you are off the open market for 12 weeks or more, then a new home report will be needed. This means another full cost. I always recommend speaking with the surveyor as they may reduce the cost for you. I ask on every occasion and normally they say yes.
- Restrict price achieved The home report market value plays a huge part in the process, especially for buyers. They use the value to determine what they will pay for the property. Lets face it, no one ever wants to pay over value for something! Especially not when its thousands of pounds! I believe home reports in Scotland can restrict what buyers pay for a property.
- Control mortgage lending Most mortgage lenders rely on the home report and the confirmed value of the property. This figure is what your mortgage would be based on. If you offer more than the value for a property, then you must pay the difference between the market value and the price you offered. This is also on top of the deposit you are paying for the mortgage.
Love them or loath them
Home reports in Scotland good or bad? They are loved by buyers and often disliked by sellers. These reports are always a hot topic for discussion in the Scottish property market. No matter which side of the fence you are on, by law they are required. The Scottish Government also has some great information about home reports.
If you want to learn more about what a home report includes read here What is a property home report in Scotland? and Home Reports Scotland FAQ