You are to be congratulated if you have decided to buy some new property and make such an important commitment; it may be one of the most important decisions you will ever make and is sure to help you live the life you are dreaming of. However, the whole process should never be taken lightly, and you should be able to clearly gauge the value and potential problems of the property you have your eyes on.
The mortgage lender will be happy with a simple mortgage valuation, but the buyer shouldn’t just accept such a simple survey. The mortgage valuation hardly gives information about the true condition of the home and serves only the mortgage lender. Here are the most important facts on homebuyers’ reports you should know.
What is a homebuyer report?
As the name suggests, it’s the report that is most recommended for buyers of a property. It really doesn’t make sense for a serious buyer to rely on the mortgage valuation – this is to the benefit of the mortgage lender and gives only very limited information. The homebuyer report is more specific and pays attention to what the homebuyer needs to know.
There are two kinds of homebuyer reports. They vary in price and in specifications. They are:
- With survey – this includes all the details that you would find in the RICS condition report, but it also gives advice on how to handle possible defects or faults found with the property.
- With survey and valuation – not only does this include all the details of the homebuyer report with survey, it also adds an evaluation of the property, plus information regarding the insurance rebuild costs.
There have been very good improvements to the previous versions, and they include a clearer layout, a section on energy performance, colour-coding for ratings, and a more professional design. The modern reports are clearer and more informative for all parties.
What you should expect
Here’s what you should expect from the report:
- Current market evaluation
- Background information on location and property
- Condition report of timber
- Results of tests on rot and other possible problems
- Damp test results
- Details on faults and problems
- And more…
The advantages of the homebuyers report are too numerous to mention. First of all, due to the expert survey of the property, you know exactly what you’re getting into, and this should give you peace of mind and allow you to sleep much better at night. Secondly, you are able to budget for any necessary repairs that might be necessary in the future. Thirdly, you will be in a much better position to negotiate with the seller. For serious buyers, the homebuyers report is the way to go.