Selling your home involves
various costs and requirements. According to the UK
government, the process of selling
your home usually takes 2 – 3 months. If you live in the UK and want to sell
your property, a crucial and compulsory requirement is obtaining a home report.
A home report provides potential buyers with important information about your property. The information included in a home report consists of three main aspects: a property survey, an energy report, and a property questionnaire.
The property survey assesses
the condition of the home – including aspects such as internal and external
walls, the roof, plumbing, and kitchen fittings. It also includes a valuation
of the property and an accessibility audit for people with particular needs.
The energy report provides potential buyers with information regarding the energy efficiency of the home. The energy efficiency is worked out according to rating bands. The higher a property’s energy rating, the more energy efficient it is. This will mean the property will have lower energy bills and less environmental impact. Along with the home’s energy rating, the energy report will also offer suggestions on how to improve your home’s energy efficiency – which can often be improved by very simple changes.
Who Needs to Provide the Home Report?
Anyone who lists their home
on the property market needs to provide a home report to any potential buyers.
There are a few exemptions to this though, such as:
- New homes that are built and sold for the
first time by the developer - Homes that are newly converted that have
not been used before in their converted state - Any seasonal and holiday accommodation
which cannot be used all year round (personal holiday homes and second homes
must have home reports) - If a home is bought under the right to buy,
then the landlord does not need to provide a home report - Any properties that also have a
commercial use - Any properties that are not fit to live
in or that are planned to be demolished.
Who Puts Together the
Home Report?
The various aspects of the
home report, such as the property survey and energy assessment, need to be
carried out by licensed professionals and qualified surveyors. The selling
agent and property owner are responsible for accurately completing the property
questionnaire.
If you have hired an agent
to sell your home (such as a solicitor or estate agent), the responsibility
will lie with them to organise the property’s home report. They will also then
be responsible for distributing the home report to any potential buyers.
If someone requests a home
report, they must be sent one within nine days. You may only not send a home
report to someone if you are certain they are not serious buyers. This may be
for various reasons, such as you don’t think they can afford your property, you
don’t think they are interested in actually buying the property, or you
wouldn’t want to sell your property to them.
It is important to remember
that you are not allowed to discriminate against certain groups of people when
distributing home reports. If an individual feels you have withheld your home
report from them without a good reason, they have the right to complain to
their local Trading Standards Office. If Trading Standards feels you are guilty
of acting unfairly, you could be fined.
What are the Costs
Involved?
The cost of a home report
is dependent on the size and value of the property, but it is likely to cost
between £500 – £700 plus VAT. As a seller, you are entitled to charge a small
sum to potential buyers for the home report to cover the costs of copying and
sending the documents. It is against the law to sell your home without a home
report. If you are caught doing this, you may be fined up to £500.
For How Long is a Home
Report Valid?
All the surveys and
assessments in a home report should not be more than 12 weeks old when you list
your home on the property market. You can also take your property off the
market for up to four weeks without having to redo your home report. Once your
home is on the market, then there is no real “expiry date” for the home report.
If your property has been on the market for a long time, buyers may request a
new, refreshed home report. If this is the case, then it is between the buyer
and seller to determine who will cover the costs involved. The price for
refreshing a survey will be up to the home report provider or surveyor. Buyers
also have the right to employ their own surveyors to look at the property at
any point if they so wish.