Top 10 tips
Eric Curran
Many potential property buyers and sellers have gone to ground in the face of falling house prices and impossible mortgage options. However for those still active in the Scottish housing market, a new system of Home Reports is coming into effect from 1 December.
From this date, owners putting their property up for sale will need to provide a Home Report that contains a survey, an energy report and a property questionnaire.
Eric Curran is a Partner wihtin DM Hall and a specialist in residential valuation. He believes the low volume of transactions may help the market get used to the new system coming into force and will provide a greater level of transparency for everyone involved in the process.
Here he offers some advice on how the Home Reports can be used to everyone’s advantage.
False Economy
Those who do not wish to produce a Home Report will have to have their property on the market before 1 December. However sellers should be aware that after this date they will be competing with others who are providing a Home Report for potential buyers. It may, therefore, be false economy to rush a property to market simply to avoid paying for a Home Report.
Cost
It is expected that Home Reports will start at around £400 for properties valued at up to £100 000. At the other end of the market, Home Reports will run to four figures. For further information please call 0844 561 6021 or visit www.openhouse.co.uk .
Shop Around
Services in the housing market are nothing if not competitive and property sellers should shop around to make sure they are getting a good deal on their Home Report. However it is important not to make the decision just on price alone as the look, feel and quality of the reports will differ depending on who compiles them.
Try before you buy
Home Reports from different surveyors will have a slightly different look and feel to them. It is important sellers take a moment to check they are happy with how the information will be presented. After all, the report will play a major part in the impression that potential buyers have of their property.
Deadlines
As ever, time is of the essence. Sellers should be sure that whoever is supplying the Home Report, they can get it done quickly and it will not delay the house being put on the market. Nobody wants a rushed job, but a report for an average property should not take longer than two or three days.
Recommendations
Speak to friends and family and find out who produced their Home Report and if they were happy with the quality of the work. A personal recommendation is the best reference available and will help make life easier in the long run.
Property valuation
Because the survey contains a valuation, sellers should use this to make sure they market their property at the right price. Traditionally properties have often been slow to sell because they have been overpriced. Using the report to market the property effectively should help it sell quickly.
Home improvements
The Home Report will also highlight where work needs to be done to the house, how thermal efficiency could be improved and where accessibility could be better. Sellers can use this information to make changes or to put themselves in a position to better explain the current status of a property to prospective buyers. The key is that they use the information to their advantage, rather than being caught out by these issues only when they are highlighted in a buyer’s survey and once negotiations have already started.
Honesty is the best policy
Sellers have to fill out a questionnaire on the property. This must be 100% accurate. If it misrepresents the property in any way, sellers may end up on the receiving end of unwanted legal proceedings.
Independence
Make sure the Home Report’s independence cannot be called into question. If the report is not independent buyers will have to get a survey of their own carried out at extra expense and this may put them off the property. If there is any doubt over the independence of the work, the money spent on the Home Report will be utterly wasted.
Eric Curran is a partner in the Glasgow north office of DM Hall.
