What is a Home Report?
A Home Report is a compulsory document put together by the seller when putting a property up for sale in Scotland.
The Home Report contains information about the value and condition of a home to allow potential buyers to make an informed decision about the house they are looking to purchase.
Do I need to employ a provider recommended by my mortgage lender?
You do not need to employ a Home Report provider recommended by your mortgage lender. However, you should check that the provider you go with is on your lenders panel otherwise your lender may refuse to accept your Home Report.
What should my Home Report contain?
The Home Report includes three sections:
You are selling your house, so you can use whoever you wish to provide your EPC and Single Survey as part of your Scottish Home Report.
All you need to ensure is that the surveyor who undertakes the survey is a member of the Royal Institution of Chartered Surveyors.
As the seller, you are responsible for completing the Property Questionnaire.
Do I need a mortgage valuation?
You can ask your surveyor to undertake a Generic Mortgage Valuation (GMV) of your property.
However, be warned that not all surveyors are on every lender’s panel, so a lender may not accept the valuation.
The Council of Mortgage Lenders (CML) currently has 141 members, so it is not surprising that not all surveyors are on all the lenders panels.
You don't know which lender your buyer may use
At this early stage of the process, you probably won’t know who your potential buyer’s lender will be, so there is a chance the mortgage valuation will have to be repeated.
The buyer – not the seller - usually pays for the mortgage valuation as their part of the purchase process. As the seller, you are NOT obliged to provide a valuation which is predominantly for the benefit of the buyer.
Some marketing or estate agent firms may try to bolt on a mortgage valuation to your Home Report so think carefully before paying that extra fee.
Home Report and Mortgage Valuation FAQs
Should you offer above the Home Report value?
How much you need to offer in comparison to a Home Report value will depend on the current market and demand in your area.
If there is not much demand you may be able to offer 0-5% above the Home Report value. In a more competitive market offering up to 10% over the valuation could increase your chances of your offer being accepted.
How much should a Home Report cost?
Usually, the cost of a Home Report will be in the range of £285-£450. This can cost more depending on the location, the value of your property, and the solicitor you use.
Are Home Report valuations accurate?
As the Home Report must meet standards and criteria the information is usually reliable.
However, the Home Report valuation is likely to be less accurate than a private survey valuation as a valuation done by a private surveyor is usually much more detailed.