The Home Condition Report (HCR) is an objective report on the condition of a property that can be relied on by all parties involved, the seller, buyer and lender.

The report is similar in depth to the current Royal Institute of Chartered Surveyors (RICS) Homebuyers Survey and Valuation (HSV), although the HCR will not include a valuation for sale but will include a rebuilding cost for insurance purposes. It will include the Energy Performance Certificate

The report will be written by fully qualified Home Inspectors in non-technical language that all parties can understand and will contain a rating scale of 1 to 3 for elements of the building to highlight problems with the property.

Providing this Report up front will not only give sellers a competitive advantage but will ensure buyers have the confidence to commit to the property immediately an offer is put in, with the offer already reflecting the property’s condition – something they are unable to do if they still have to wait for a survey to be completed.

This means that the time taken to complete a sale should be reduced, as the legal documents will already be in the Home Information Pack. Inclusion of the Home Condition Report will ensure that the buyer is not faced with nasty surprises later in the buying process, which could threaten the sale.

The report tells you:
About the construction and condition of the home on the date it was inspected and whether more enquiries or investigations are needed.

The report tells you about any defects that need urgent attention or are serious. It also tells you about things that need further investigation to prevent damage to the structure of the building.

It does not tell you about any minor defects that would not normally have any effect on a buyer’s decision to buy.

The report gives ‘condition ratings’ to the major parts of the main building and permanent outbuildings.

The report includes the mandatory Energy Performance certificate.

The report is divided into eight sections:

Marketing Advantage
Providing this Report up front will not only give sellers a competitive advantage but will ensure buyers have the confidence to commit to the property immediately an offer is put in, with the offer already reflecting the property’s condition – something they are unable to do if they still have to wait for a survey to be completed.

This means that the time taken to complete a sale should be reduced, as the legal documents will already be in the Home Information Pack. Inclusion of the Home Condition Report will ensure that the buyer is not faced with nasty surprises later in the buying process, which could threaten the sale.

Benefits of an HCR

		The HCR gives better information upon which an estate agents can base their marketing strategy.
		Delays after offer acceptance can be avoided because the timing of the report allows for further investigations during marketing.
		Evidence of repairs can be directly linked to the HCR's findings.
		The HCR shows the estate agent and potential buyers that the seller is serious about selling their home.
		The HCR demonstrates that the estate agent and seller are not trying to hide anything.
		Buyers will be more receptive to properties with an HCR.
		Lenders are legally entitled to rely on an HCR so the provisions of an HCR will ease and speed up mortgage applications.
		The potential for sales falling through/difficult negotiations are reduced.
		An HCR will speed up the process between offer acceptance and exchange of contracts.
		An HCR impresses potential clients and shows progressive thinking.

As a seller, why should I commission an HCR?

An HCR is a very detailed but easy to understand inspection report on the condition of your property. If your property is in good condition the HCR will confirm this fact to all prospective buyers. Many buyers will not know that insignificant cracks in plasterwork are caused by the plaster shrinking as it dries and not because of subsidence. Prospective buyers can take on board the comments in the HCR before viewing your property and thus allay any fears they may have when they view the property.

This should result in more viewings of your property which should lead to a quicker sale, less negotiation over the asking price and less stress for you to endure.

The Energy Performance Certificate is an integral part of the HCR. It is very cost effective to commission an HCR in lieu of the mandatory EPC at little additional cost.

As a buyer, why should HCRs be of interest to me?

Buying a house is one of the largest single investments most of us will ever make but many home buyers rely only on a mortgage valuation report. A mortgage valuation inspection is not a survey it is merely a valuation carried out on behalf of the mortgage company to ensure the property offers sufficient security. Thus a mortgage valuation will only list items that materially affect the value of the property, leaving other defects that are of greater importance to purchasers unmentioned.

If the property you are considering buying does not have an HCR it would be advisable to insist on the property having an HCR as a condition of sale. After all, if you are selling a home as well you could face two sets of survey costs but it's not fair for you to carry double the financial burden just for being sensible.

To ensure the investment you are considering will be sound either insist on the seller having an HCR carried out or, alternatively, we can prepare an HCR on your behalf (and for your sole use) and provide you with up-to-date information to enable you to make an informed decision.