The home report is actually three documents which are combined to create a comprehensive information pack that is intended to supply a prospective purchaser with all the necessary details that they might want to know about the property they are interested in buying.
You can often get inexpensive home reports no matter whereyou’re located. Whether you are a buyer or a seller who is thinking of putting their property on the market, here is a look at the three parts of a home report.
What you can expect to find in a home report are three separate components, which are collated from a variety of sources and using qualified surveyors to inspect and value the property in question.
The first component is the single survey, and this contains detailed information relating to the condition of the property and also provides a professional valuation based on current market conditions and the state of the property.
The next part is the energy report, which takes a look at the energy efficiency rating of the property and the impact it has on the environment based on its energy performance and how the house is heated and insulated.
The third component is a property questionnaire, which should contain answers to frequently asked questions such as the Council Tax band the property is in and relevant information such as the parking arrangement and details of any modifications or extensions that have been added.
The single survey is carried out by a qualified property surveyor and the report will give you information such as the type, level of accommodation, neighborhood, age and construction of the property.
It will also point out the extent of the survey and how thorough their investigations were when they checked on the property and the report will also highlight anything that the surveyor could not inspect at the time of their visit, so that any buyer is aware of this fact.
The principle purpose of the single survey is to carry out a visual inspection of the inside and outside of the building without causing any damage or disturbing any harmful or hazardous materials. Any visible faults or potential repair issues that are noted should be included in the report, together with an opinion on the current value of the property in their professional opinion.
A buyer can pay for a more comprehensive survey to be carried out at a later date if they want to, or rely on the home report as accurate guidance, whilst being aware of its limitations compared to a more detailed report which would be more expensive.
Energy performance certificate
There is a lot of useful information contained with the Energy Performance Certificate (EPC) and this is intended to show buyers how energy efficient the property is and how much it is likely to cost to run.
The EPC provides an estimated figure for energy costs over the next three years and then also provides a figure on how much you could save on that figure if improvements are made.
The property will be given an energy efficiency rating that is a combination of a score between 1-100 and a grade between A to G. The best score would be an A rating with a score of 92 or more, but older homes will often fall into a lower category.
It might show that the property is in band F for example with a score of 32 and that homes in Scotland are normally band G. The purpose of the comparison is to show how it rates against other similar properties and the report also provides a potentially achievable score and rating, which could be achieved if improvements are made.
The same scoring and grading system is used to produce a figure for the environmental impact of the property in regard to CO2 emissions.
The seller has to complete the questionnaire and this information will be given to anyone interested in buying the property who then requests a copy of the home report.
The answers provided will help to clarify any standard issues or questions that need to be asked about a property when you are thinking about buying and will help your solicitor with the speed of the transaction if they already have some of the information they need for their searches.
The home report is a very useful and important document for buyers and sellers and as most homes that are being marketed need one. Make sure you request a copy for any property that you are thinking of making an offer on.
About the Author: Josh Henderson is a property investor who has a passion for real estate. Also a passionate writer, he enjoys sharing his experiences online. His articles predominantly appear on property investment blogs.
Photo Credit: James Thompson