Who pays for Home Report in Scotland?

If you live in Scotland and want to sell a property, you are required by law to have a full home report study done.

The Home Report is an important document to determine how the house is in general so that owners can be sure they are spending their money well. It tells you everything you need to know about a property and can be used by both buyers and sellers to reach a fair price.

What Exactly is a Home Report

Since the home reports started in 2008, many people who own homes in Scotland have been wondering, “What is a home report?”

A home report is a detailed document that describes the property’s state. It’s made up of 3 reports:

• Property Form
• Single Survey 
• Energy Report

The Property Form is a simple form that homeowners fill out to list things like changes to the property, service plans for the central heating system, planning approval, parking options, property liabilities, and so on.

A Single Survey is a detailed look at the property’s state by a person who is not connected to the property. Based on the condition of the walls, roof, plumbing, etc., the property will be given a score between 1 and 3. 1 means that no repairs are needed right away, 2 means that repairs will be needed soon, and 3 means that repairs are needed right away.

The purpose of the Energy Report is to show how well the building uses energy. The result depends on things like how well the walls, windows, and roof are insulated and how well the boiler is maintained. Your home will get a grade between A and G, with A being the best and G being the worst. This information will be used to figure out how much it will cost to run the property.

Home reports are quick and easy to do, and sometimes you can see the results on the same day that the survey is done.

Who is Expected to Pay for A Home Report?

It is the property seller’s responsibility to produce a Home Report, hence they must pay for it.

The cost of the Home Report is completely covered by the homeowner, and the Estate Agent is under no obligation to contribute.

How Much Does a Home Report Cost?

The cost of a House Report may be burdensome for sellers who are already struggling with the financial stress of selling their home.

Home report costs vary by city and provider, but as a general rule of thumb, a Home Report should cost around £300 + VAT for a house worth £100,000. You should expect to pay an additional £150 + VAT for your house survey for every additional £100,000 valuation.

A Home Report, on the other hand, is a legal requirement, and sellers must be able to submit their report to potential buyers within 9 days of them asking for one. Noncompliance might result in a £500 fine.

Obtain multiple bids with price guarantees from different providers to ensure you get the cheapest home survey possible.

Who Pays for a Home Report Update?

It is important to remember that home Report do not have a shelf life and do not need to be refreshed on a regular basis; however, as a general rule of thumb, it is best to go to market with a Home Report that is less than 12 weeks old. The condition of your property may have changed in the 12 weeks since the survey, which, if discovered later, can cause a sale to fall through. If your survey has been on the market for more than 12 weeks, a buyer may request that you update your Home Report.  

Typically, the seller will pay for this expense as a goodwill gesture to the buyer and to ensure that the sale proceeds smoothly.

Summary

Understanding the dynamics of who pays for the Home Report in Scotland is crucial for both sellers and potential buyers in the Scottish property market. The Home Report, a comprehensive document consisting of a Single Survey, a Property Questionnaire, and an Energy Performance Certificate, plays a pivotal role in informing buyers about the property’s condition, value, and energy efficiency.

Sellers are responsible for commissioning and covering the costs of the Home Report,

which includes expenses related to the surveyor’s services, property valuation, and gathering information for the property questionnaire. This investment serves to provide potential buyers with transparent and essential information about the property, enabling them to make informed decisions.

The involvement of a chartered surveyor in preparing the Home Report ensures the credibility and accuracy of the valuation and assessment of necessary repairs. Moreover, the Energy Performance Certificate offers insights into the property’s energy efficiency, becoming increasingly important in an environmentally conscious society.

For potential buyers, the Home Report offers a valuable resource to assess the property’s condition before making a purchase decision.

It aids them in understanding the property’s potential needs, estimated costs of repairs, and its energy efficiency, all of which can impact the negotiation process and their decision to proceed with the purchase.

In essence, the Home Report charter in Scotland aims to create a transparent and fair property market environment by providing accessible information to all parties involved. While sellers bear the initial costs, the benefits extend to both sellers and buyers, contributing to a smoother property transaction process. Additionally, the information within the Home Report may also influence factors such as mortgage valuation, accessibility, and even council tax considerations.

Therefore, whether you’re a seller looking to market your property or a potential buyer seeking the right investment, recognising the significance of the Home Report and its associated components can lead to well-informed decisions and a more efficient property transaction process in Scotland.

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