When you buy a property it is always a good idea to arrange for a HomeBuyer Report to be prepared by a member of the Royal Institute of Chartered Surveyors (RICS).
The HomeBuyer Report is more detailed than a mortgage valuation, which is only concerned with assuring your lender that the property is sufficient security for their loan.
The HomeBuyer Report gives information about the condition of the property and should highlight any areas that need attention.
What the HomeBuyer Report will contain
The report will include details of the following:
- An open market valuation (optional)
- General information about the property and its location
- An estimate of rebuilding costs for insurance purposes
- Assessment of any damp-proofing, drainage or insulation (but no testing of the drains)
- Damp test results
- A list of points requiring urgent attention
- Details of major faults
It should be noted that the surveyor will only look at visible parts of the property. This means that for example faults beneath the flooring, behind walls or in drains will not be included.
What to do with the HomeBuyer Report results
The report will rate the property’s condition with one of three ratings. Condition rating 1 means no repair needed, rating 2 is for defects that need repairing or replacing but are not considered serious or urgent and rating 3 is for defects that are serious and/or need urgent repair, replacement or investigation.
If you are unclear or concerned about any points in the report, ask the surveyor to explain it them.
You should then obtain quotes from qualified professionals for the work needed to rectify any problems.
Contact the estate agent, sending copies of the quotes, and ask to renegotiate the price to take account of the required expenditure.
You will be in a good bargaining position as it is likely that any future buyer will also come up with the same problems on their HomeBuyer Report.
Cost of a HomeBuyer Report
Fees start at around £400 for a HomeBuyer Report. It is always worth investing in one as it should mean you can avoid nasty and expensive surprises down the line and also reduce the price you pay. You will go into the purchase knowing exactly what work needs to be done and be able to plan accordingly.
If you would like to talk to one of our specialist property lawyers, call us on 0333 305 5189 or email us at info@leadingpropertylawyers.co.uk
Watch our explanation video here:
