Graham + Sibbald have been providing Home Reports and Residential Surveys and Valuations to a wide variety of private clients and estate agencies for a number of years.
Craig Henderson, Residential Partner at Graham + Sibbald, has nearly 35 years’ experience within the West of Scotland and has worked within the firms Paisley, Hamilton, Glasgow and Ayrshire offices throughout his professional career.
During the course of the property inspection it was imperative that whilst the client was made aware of the positive aspects of the property (in terms of the improvements they have carried out internally), they were also made aware of the maintenance challenges of the property.
Externally it was apparent the roof was nearing the end of its usual lifespan, the gutters and downpipes were rusted and leaking and, in all likelihood, would require overhaul if not replacement.
Aesthetically the external appearance of the house, whilst satisfactory from the front, was not particularly good to the side and rear and advice was given in terms of presentation to the market and issues, which if correctly reported within the Home Report would ensure purchasers embraced the content of the Home Report.
Craig explained to the client that it is imperative that the Home Report accurately reflects the condition of the property within the categorisation of repairs and that the valuation was durable, robust and reflected the evidence of completed sales within the surrounding area. He provided evidence of comparable sales where properties had sold at closing date above valuation figure, provided the valuation figure was robust in terms of the available evidence.
The client, whilst initially reluctant to accept the advice, was persuaded to accept and signed off on the Home Report prior to marketing commencing with the agent.
In the period immediately preceding the Home Report inspection, supply of properties in the area appeared to be restricted, however, demand levels for family housing within this location are strong.
The client of the property had a strong view as to the worth of the property which, in their opinion, was worth more than other houses within the vicinity. The valuation of residential property requires a Surveyor to have regard to local completed sales prices together with present market conditions. Craig advised that the best response and highest price was likely to be paid by generating a competitive interest and hopefully a closing date for the property within a short period of time.
In order to achieve this, it was imperative that the valuation of the property was in line with other sales had that been achieved, so that purchasers were not deterred from viewing.
The present owner had committed to the purchase of another property and within their key decision process had factored in the price they would achieve for the sale of their own house.
The owners expected sale price was at a level above what anything else within the vicinity had previously sold for, for similar accommodation.
Whilst the property was in excellent overall condition internally, externally there were a number of age-related maintenance issues which would require expenditure.
The client had the desire to achieve a minimum sale price of £115,000 and was expecting a Home Report at that level. After careful analysis of the comparable sales and detailed market analysis a Home Report at £110,000 was issued.
Within two weeks of marketing, the property had generated enough sufficient interest that the estate agent decided a closing date was appropriate following several notes of interest.
At closing date, it is understood that a number of offers were received following the property being advertised at a price of offers over £100,000. The highest offer at closing date was £123,000 with an early entry date.
This outcome was achieved with a robust Home Report providing correct categorisation of repairs, particularly the external maintenance issues, together with an accurate Valuation which was supported by reference to the comparable information available. This clearly demonstrates the importance of an accurate Home Report and Valuation figure which is supported by the evidence of comparable sales and takes cognisance of market conditions in order to achieve the best possible outcome.
Experience of reporting on Home Reports with detailed value analysis and comparable evidence being provided to the client, together with good communication with the client ensured that work in conjunction with the estate agent the best outcome.