How to understand a Home Report

Ever wondered what a Home Report really looks like, and what all of the details mean when buying or selling a home? Billy Gibbs, estate agent at Blackwood & Smith LLP, shares a breakdown of the Home Report, and what those numbers really mean for buyers and sellers.

What is a Home Report?

A Home Report is a document that's legally required for the purchase and/or sale of any residential property for sale in Scotland.

What's in a Home Report?

Home Reports consist of a Single Survey, Energy Performance Certificate (EPC), and a Property Questionnaire. 

Single Survey

Carried out by a Chartered Surveyor, the single survey details the property’s condition, accessibility, and current market value.

For simplicity, aspects of the property’s condition are put into one of three categories:

Category 1: No immediate action or repair needed.

Category 2: There are repairs or replacement requiring future attention, but estimates are still advised.

Category 3: Urgent repairs or replacement are needed now. Failure to deal with them may cause problems to other parts of the property or cause a safety hazard. Estimates for repairs are needed now.

Category 1s and 2s are less likely to cause issues, however category 3s can create anxiety for buyers and sellers. For a buyer, a category 3 may mean they explore potential repair costs before making an offer.  Buyers should remember that offers can be subject to further surveys being carried out, and sometimes, sellers may address the problem themselves.

Sellers should know that, while the single survey may highlight some category 3 issues, the valuation is based on the property’s current condition and any required repairs will be factored in. They are under no obligation to address repairs – although it may make selling easier!

Energy Performance Certificate (EPC):

EPCs rate the property’s energy efficiency from A to G and offer recommendations for improvements, with no obligation for sellers to carry these out.

EPC requirements are closely linked with national efforts to reach net zero and future legislation is expected to make them increasingly important when selling. There is even suggestion that “green mortgages” will be introduced, offering better mortgage deals to purchasers of energy efficient homes.

Property Questionnaire:

The seller completes the Property Questionnaire, supplying information that only they are likely to know, including parking arrangements and council tax bands. It must be completed honestly, with the hope that this will result in less sales falling through due to unforeseen issues arising during conveyancing. 

For more advice or information from Blackwood & Smith LLP, visit their website or call 01721 720131.