Home Buyers Report and different types of valuation explained

Here we take a look at the Home Buyers Report and how it differs from the other different types of valuation, and why a Home Buyers Report may be a more prudent than a basic valuation. We also provide details of how we can help arrange a Home Buyers Report.

Table of Contents:

What is a Home Buyers Report?

There are three types of valuation you can arrange when you are buying a property:

Basic Valuation
Home Buyers Report
Building Survey (formerly known as a Full Structural Survey)

As we touched upon during the introductory text to this page, a Home Buyers Report is a combination of both a valuation and a survey in that it is much more detailed and informative than a Basic Valuation, although not as comprehensive as a Building Survey (also known as a Full Structural Survey).

What is the difference between a Home Buyers Report and the other types of valuation?

Probably the best way of explaining the differences between the various types of valuation is to compare each one individually as we do in the next section.

Different types of valuation explained

Here we take a look at the three main types of property valuation, and explain and compare the main differences between them.

1. Basic Valuations

The Basic Valuation is for the benefit of the mortgage lender alone, and merely confirms that the property is suitable for mortgage purposes, and provides a general description of the property and its condition, together with an indication of the market valuation and insurance value. Lenders will usually require the valuer to support their declared valuation by comparing recent transactions of similar types of property. The Basic Valuation does not give any form of redress to the purchaser if subsequent problems arose.

Lenders will require a minimum of a Basic Valuation to be undertaken when purchasing or remortgaging a property. Because the Basic Valuation only provides minimum information, the cost is cheaper than the other types of valuation.

2. Home Buyers Reports

The Home Buyers Report is considerably more comprehensive than the Basic Valuation. The valuer this time acts for you, and therefore it will provide the purchaser with some form of comeback in the event that the surveyor proved to be negligent in their reporting. However, the scope of the Home Buyers Report will generally be to point out major and urgent faults that may have a significant effect on the property so that the buyer has an opportunity to confront the vendor (seller) to either correct the fault, or to adjust the sale price to compensate for the works required.

The valuer will also point out any other surveys that they may consider necessary, for example a timber and damp report. It must be remembered that the survey will relate usually only to visible areas of the property, and it will point out any major structural defects. It is important to check the extent of the aspects to be examined within the valuer's contractual remit, and ensure this will be sufficient for your purposes.

The Home Buyers Report will also provide an estimate of the property's current market value, and will also address any issues that may require further investigation by your solicitor such as rights of way to, or over the property.

Because the Home Buyers Report is more detailed than the Basic Valuation, the cost is correspondingly higher, and the cost for an average property would probably be in the region of £400 - £500 plus VAT.

3. Building Survey (formerly known as the Full Structural Survey)

The Building Survey, or the Full Structural Survey as it is still often referred to as, provides the purchaser with the most comprehensive property report of all. It will generally list all faults, both major and minor, and will therefore give the prospective purchaser a clear indication as to any of the potential pitfalls that they may be entering into. In the event the surveyor has been negligent, as with the Home Buyers report, the purchaser has the protection of the right to redress against the surveyor.

Because the surveyor will undertake a very thorough and detailed inspection of all parts of the property, the cost of the Building Survey is the most expensive of all, and is likely to be at least 50% more expensive as a Home Buyers Report.

Why would I choose a Home Buyers Report instead of a Basic Valuation?

A Home Buyers Report, rather than a Basic Valuation would generally be considered more prudent because:

It is designed to offer advice on significant and urgent repairs that could affect the value at purchase and on future re-sale
It is designed to provide you with sufficient information for you to make an informed decision as to whether to proceed with the purchase of the property
It will give a carefully assessed value
It will clearly indicate what actions and decisions you should make prior to you making an offer to buy, although the Report will not usually cover minor items of disrepair
As the surveyor acts for you, you have the right to redress to sue for negligence in the event the surveyor has overlooked a fundamental property deficiency
The additional cost of the Home Buyers Report can be quite easily recouped if the surveyor is able to highlight a defect where it enables you to negotiate a price reduction to compensate for the required remedial work

Could Shire Direct help me to arrange a Home Buyers Report?

Yes, no problem!

Remember, our qualified mortgage advisors are available to discuss the options open to you. Naturally, we'll carefully assess your circumstances, needs, requirements and aspirations and come up with the most appropriate solution for you.

We think you'll find our service to be friendly yet professional and helpful. Please don't hesitate to contact us if you would like to discuss your requirements, naturally without obligation! Our professionally qualified mortgage advisors are available from 8am until 10pm everyday including Saturdays and Sundays, and we'll be delighted to to provide you with an in-principle decision, whatever your circumstances!

So call us on FREEPHONE 08000 282 281, or why not enquire online at any time. We'd love to hear from you!

Hopefully, we've managed to provide you with some insight into the Home Buyers Report and the different types of valuation. Don't forget there's a wealth of information to be found throughout our website, and that we're only ever a free phone call or few mouse clicks away!

Enquire Online now, or call us today 08000 282 281 - our freephone lines are open 8am-10pm everyday! We'd love to hear from you!

The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.

There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.

THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Adding existing debt to your mortgage will increase the repayment term and overall cost.

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Home Buyers Reports and different types of valuations explained and available help!