News Archive
September 2007
Are you considering a house move and are you going to be buying or selling a house in 2009?
The buying and selling process is about to change. With the passing of The Housing (Scotland) Act 2006 as of 1stDecember 2008 under Part 3 of the Act the property information pack and sellers or single survey with a valuation will be compulsory by law for all but new houses. The single or sellers survey will form part of the Home Report Scotland and will include not only a report on the condition but also a valuation. It will also be compulsory and should be included in the Home Report Scotland will be an energy report and a property questionnaire containing relevant information with regard to the house which is for sale. Full information can be found on the website. Failure by a seller to provide a Home Report could result in a penalty charge of £500.
Is the change a good thing or a bad thing from the point of view of the buyer or seller?
The marketing of property in much of Scotland has certainly changed significantly over the past few years and the dreaded multiple surveys which used to be relatively common in more buoyant market conditions have now been replaced in most instances with offers made subject to survey. This has resulted in far fewer valuation surveys and in fact in most instances there is now only one survey for most house sale transactions.
In addition as the market starts to cool the issue with multiple surveys diminishes due to the competition being less with fewer and fewer buyers in the market place. Also a potential buyer wishing to purchase a particular property may want his own alternative valuation report as a negotiating tactic to try and achieve a reduction in the purchase price. In addition the Home Report will undoubtedly slow up the whole process and lead to a reduction in the number of properties for sale at least in the short term until the Home Report Scotland becomes the norm. In fact it is possible that more properties will be put up for sale prior to the 1stDecember 2008 to avoid the need for the Home Report. Opportunist sales will also be affected and the not insubstantial additional cost will be an added financial burden in the whole sale process. If the house does not sell then there will be a requirement for an updated report by the surveyor.
Turning to the reality of what is likely to happen after 1stDecember 2008, will all buyers be happy to accept a report commissioned and prepared on behalf of the seller and at his expense in the first instance? What about the mortgage lenders, the banks and the building societies? There is a potential conflict of interest and it is possible that many lenders will require there own independent mortgage valuation report or an abbreviated valuation report; drive past or desk top valuation.
Where does that leave you as a potential seller or a buyer? Only you can decide when the time comes.
What will the end effect be of the Home Report? In practise the overall costs involved in selling and buying a house will increase significantly with a more expensive report and valuation to prepare before a property is marketed, the need for updates to that report if the property does not sell quickly, the requirement by some lenders for an independent valuation and the wishes of some buyers to commission their own independent valuation report.
However whatever happens we at Atholls are committed to providing a speedy, thorough and professional service to you whether you are a buyer or a seller or for that matter a mortgage lender.
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