The Difference Between a Home Report and a Mortgage Valuation
One of the most frequently asked questions we hear is “Will the Home Report include a Mortgage Valuation?”. Read on to find out the difference between them and to understand why most Home Reports won’t include a Mortgage Valuation suitable for the purpose of the buyers lender.
The Home Report will provide the buyer with all the information they need to know about the condition of the property including any alterations which have been carried out along with a scale of 1-3 on any repairs which may need to be carried out immediately or in the future. The survey doesn’t typically include a valuation of the property, but a current valuation of the property can be included on request of the seller.
A Mortgage Valuation Report, as opposed to other types of survey, is intended only to give a brief inspection of the property, and a market valuation. Its scope is restricted by the fact it’s based on a limited inspection and a number of standard assumptions.
The Mortgage Valuation is for the benefit of the mortgage lender and is designed to give enough information for the lender to decide whether the property is safe to lend on, and up to what amount.
In addition to the Home Report, surveyors may provide a generic Mortgage Valuation Report that answers many of the questions that lenders will have about a property. This is not a prescribed document, but will be offered to sellers by the surveyor who carries out the survey. This may be useful in any discussions with lenders about a prospective purchase.
However, it is important to note that while you’re entitled to ask your surveyor to include a Generic Mortgage Valuation of your property, be warned that not all surveyors are on every lenders panel, so a lender may not accept the valuation. The Council of Mortgage Lenders (CML) currently has 113 members and 86 associates so it is not surprising that all surveyors are not on all the lenders panels.
You also don’t know which lender your buyer may use so there is a huge chance the Mortgage Valuation will have to be repeated. The buyer normally pays for the Mortgage Valuation as their part of the purchase process. The seller is not obliged to provide a valuation as this is predominantly for the benefit of the buyer.
Ensure that you understand this fully, as some estate agents may try to sell you this Mortgage Valuation as an ‘add on’ cost to the Home Report so think very carefully before being charged any additional fees. Also always ensure the surveyor you instruct to carry out your Home Report is RICS qualified.
If you need advice on any aspect of the Home Report or selling your home, give us a call on 0131 608 0175 or email us at firstname.lastname@example.org
Andrew MacKenzie is a qualified Chartered Surveyor with over 20 years’ experience within the Scottish Property market. He specialises in all types of residential valuations including Home Reports, Private Valuation reports and Development Appraisals.
Outstanding service and very quick turnaround from Andrew and the team. Would highly recommend this company for anyone requiring a fast, professional and efficient service.
19:27 03 Oct 23
19:11 09 Jul 23
Thank you Home Report Company, the surveyor who was sent over for our house valuation report was great. It was nice to be able to welcome a well-mannered, friendly and professional person to our home.For those looking for chartered surveyors to carry out a home report or valuation, I highly recommend this company. They have been very helpful, polite and punctual - and made life that little bit easier during a difficult time in our family. Thank you again.
james “TechnixJim” F.
06:43 26 Jun 23
I needed a survey done quick and contacted home report company,Andrew came within 2 days,no messing about and got my survey paperwork next day via email,excellent company,thank you andrew.all the best jim.
18:15 23 Jun 23
I have recently instructed the Home Report Company to complete a survey for me. From my first initial enquiry up until receiving my report I have nothing but high praise. I was given a quote, a prompt appointment was made and the survey completed. Andrew, the surveyor, was very professional and also very smiley and reassuring. He went about the survey with minimal intrusion or fuss and he also liked my dog 😊. Highly recommend.
16:47 09 Jun 23
Andrew Mackenzie from home report company did our home report very professional and polite.This is the second time I have used home report company and mr Mackenzie has done both reports.The price charged was very competitive and by far the cheapest I enquired about, I would definitely recommend the home report company for your home report.
15:34 28 Apr 23
10:58 05 Apr 23
Perfect, exactly what we needed to sell our home, very quick, helpful and at an excellent price! Would highly recommend!
21:36 22 Mar 23
Friendly and professional service. Andrew was very professional and answered any questions I had. I received the completed home report the next day, after first receiving the draft version.
Steve “Steve J” J.
10:47 16 Mar 23
Very friendly and helpful surveyor who produced an honest, factual report. Survey was organised very quickly, was reasonably priced (compared to other quotes) and the report was produced quickly after the survey. No complaints!