There is a common misconception that Home Reports only last for so long but that is not the case.
Once you have your home report, that Home Report is valid for so long as your property is on the market for sale whether that is only a couple of weeks or a matter of months.
So, I don’t need to get another Home Report even if it takes several months for my property to sell?
You may do, but that depends on how quickly your property comes under offer.
When Home Reports were first introduced, it was agreed that if the Home Report is more than 12 weeks old at the time your property comes under, offer then the buyer’s lender (as part of the mortgage application process) will ask for your Home Report to be updated or refreshed, as it is sometimes called. The reason for this is that since property market conditions are subject to change (prices and values of properties can go up or down) it was thought that after 12 weeks, the original valuation in the Home Report might be out of date.
Although in the current property market in Edinburgh at the moment is such that the majority of properties come under offer well within the 12 week period, updating the Home Report is not so common as it was a few years ago but is sometimes still required.
How much does it cost to get the Home Report updated? And who pays for that?
Home Reports are expensive but the update of the Home Report is – thankfully – less so. Surveyors usually charge a fee of around £150 for the update and practice has it that you, the seller, will pay for this.
What’s involved in getting the Home Report updated?
The surveyor who did the original home report will come back out to your property to go another inspection. The surveyor will then usually prepare a draft of the updated Single Survey (but not the whole home report – the surveyor will not update the Energy Performance Certificate and you will not be asked to complete another Property Questionnaire) for you to approve and once approved the updated Home Report will be published and sent to the buyer’s solicitor to pass on to the buyer’s mortgage provider or lender.
What happens if the value of my property is reduced in the updated Home Report?
There is not a lot you can do about that. The surveyor, although still being paid by you, is in practical terms acting for you, the buyer and the buyer’s lender. So, the surveyor has to reflect current market conditions. However, in saying that it is very rare for the updated home report to become such an issue that as a result the sale falls through.