The new RICS HomeBuyer Report

The new RICS HomeBuyer Report

PRESENTATION

BY

Alan McNaughton Independent Property ConsultantAlan McNaughton Dip. Est. Man., MRICS – Chartered Surveyor


The report aims to help buyers:• make a reasoned and informed decision on

whether to go ahead with buying the property;• make an informed decision on what is a

reasonable price to pay for the property;• take account of any repairs or replacements the

property needs; and• consider what further advice should take before

exchanging contracts


• make a reasoned and informed decision on whether to go ahead with buying the property;

The HBR includes comment on issues that

buyers may not be aware of when making an

offer such as condition, risks and hazards, and

value of the property


• make an informed decision on what is a reasonable price to pay for the property;

The HBR includes the surveyors opinion ofthe current market value of the property at the date as inspected. It comments onmatters that may affect value if not dealwith


• take account of any repairs or replacements the property needs;

The HBR includes condition ratings, andprofessional advice and comment, onelements of the property which identify themost important issues, and whether defects are serious or urgent


• consider what further advice should take before exchanging contracts

The HBR flags up particular points whichshould be referred to the buyers legalAdviser. Where appropriaterecommendations for further investigationsare included but only where conclusions cannotbe reached within the limitations of the HBRService.


A mortgage valuation is not a homebuyerReport:

A mortgage valuation report is prepared forthe buyers lender, not for the buyer. Itanswers only the questions about whetherthe property is suitable security for a loan. It cannot be relied upon to answer questions thatthe concern the buyers own interests or givedetails of the condition of the property.


Benefits of the HBR to buyers:• Possibly enable renegotiation of agreed

purchase if unknown issues flagged up before legal commitment to purchase

• Allows reflective thought and may prevent an expensive mistake being made

• If purchase proceeds the buyer has an understanding of the property to assist in its future occupation and enjoyment

• Legal status of the buyer remains “caveat emptor” LET THE BUYER BEWARE!


Value for money

PEACE OF MIND

HOME SWEET HOME or HOUSE OF HORRORS?

A small price to pay in comparison to the purchase price.

The new RICS HomeBuyer Report

Documents

Transcript of The new RICS HomeBuyer Report