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The homebuyers report is presented in a standard format
and covers the general condition of a property being
assessed.
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The surveyor's
main objective is to give a client his professional advice
following a general inspection of the accessible parts
of the property.
The information contained in the report should help
potential buyers make a reasoned and informed judgement
on whether to proceed with a purchase or to re-negotiate
the price. |
Once the
report is produced it should be read carefully and any
questions should be raised with the agent or vendor as
soon as possible.
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The homebuyers report
explained. |
The Homebuyer’s survey report advises only on areas of
the property that are visible. Surveyors therefore
cannot lift floorboards or knock holes in the wall to
check for damp and other problems. The RICS
homebuyer report is presented in a standard format and
is designed specifically as an economical survey and is
a cost-effective way to minimise risk to potential
purchasers of a property.
The homebuyer report service therefore covers the
general condition of the property and particular
features which affect its present value and may affect
its future resale. The report focuses on what the
surveyor judges to be urgent or significant matters.
In negotiations over price, significant matters are those which
would need to be discussed before the final amount is agreed.
In summary the homebuyer report service should contain:
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A visual inspection of
the property. |
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A concise report
based on the
inspection. |
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A property
valuation. |
The Inspection is a general examination of those parts
of the Property which are accessible: in other words
visible and readily available for examination from
ground and floor levels, without risk of causing damage
to the Property or injure the Surveyor. Due care is
therefore exercised throughout the Inspection regarding
safety, particularly the constraints of being a visitor
to the Property (which may be occupied). So, furniture,
floor coverings and other contents are not moved or
lifted; and no part is forced open to make it
accessible.
The services are inspected (except, in the case of
flats, for drainage, lifts and security systems), but
the Surveyor does not test or access the efficiency of
electrical, gas, plumbing, heating or drainage
installations, or compliance with current regulations,
or the internal condition of any chimney, boiler or any
flute. Also the Surveyor does not research the presence
(or possible consequences) of contamination by harmful
substance. However, if a problem is suspected in any of
these areas, advice is given on what action should be
taken.
Where necessary, parts of the Inspection are made from
adjoining public property. Standard equipment such as as a
damp-meter, binoculars and a torch may be used. A ladder
is used for hatches and also for flat roofs not more
than three meters above ground level. Leisure facilities
and non-permanent out buildings (such as pools and
timber sheds) are noted but not examined. In the case of
flats, exterior surfaces of the building containing the
property, as well as its access areas, are examined in
order to assess their general condition; roof spaces are
inspected if there is a hatch within the flat.
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The homebuyer
report itself. |
The Report provides the Surveyor's opinion of those
matters which are urgent or significant and need action
or evaluation by the Client before contracts are
exchanged. It includes some or all of the following:
Urgent
repairs
For example gas leaks, defective chimney stacks, water
leaks etc.The client would be advised to obtain
quotations where appropriate.
Significant matters requiring further investigation
For example suspected subsidence or drainage problems
for which the client should obtain reports and
quotations from suitable contractors.
Significant but not urgent repairs and renewals
For example replacement glazing or a new covering for a
flat roof may be highlighted as future priorities. The
surveyor may also highlight other considerations or
legal matters, for example a possible right of way,
which the client should instruct their legal advisers to
include in their inquiries.
Matters assessed as not urgent or not significant are
outside the scope of the homebuyer report, and are
generally not documented. Other matters (such as safety)
are reported where the surveyor judges this to be
helpful and constructive.
Non accessible areas
If a part or area of the property which is normally
examined is found not to be accessible during the
inspection, this is reported. If a problem is suspected,
advice is given on what action should be taken.
Standard format
The homebuyer report is in a standard format arranged in
the following sequence:
Introduction & Overall Opinion; The Property & Location;
The Building; The services & Site; Legal & Other
Matters; Summary; Valuation. In the case of Leaseholds,
the Report is accompanied by a standard appendix called
Leasehold Properties.
The last section of the Report contains the Surveyor's
opinion both of the Open Market Value of the Property
and of the Reinstatement Cost as defined below.
Open market value
The open market value is "the best price at which the sale
of an interest in the property would have been completed
unconditionally for cash consideration at the date of
valuation". In arriving at the opinion of the open market
value, the Surveyor also makes various standard
assumptions covering, for example: vacant possession;
tenure and other legal considerations; contamination and
other hazardous materials; the condition of unexpected
parts; the right to use mains services; and the
exclusion of curtains, carpets, etc from the
valuation. Any additional assumptions will be stated by
the surveyor, and further details are normally available
on request.
Reinstatement Cost
The
reinstatement cost is an estimate for insurance
purposes of the current cost of rebuilding of the
property in its present form, unless otherwise stated.
This includes the cost of rebuilding the garage and
permanent outbuildings, site clearance and professional
fees etc, but excludes VAT (except on fees).
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Homebuyer's report
- typical cost. |
Typical costs for this type of home survey will be around
£450, but costs can vary so it's worth shopping around.
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