Scotland’s leading independent property consultancy CKD Galbraith has outlined its thoughts on the residential Home Report two years on since its inception, and how it has encouraged a degree of stability in the market place.
[Pictured: Bob Cherry, partner at CKD Galbraith and head of the firm’s residential division in the Ayr office.]
The system of producing a Home Report for the sale of residential property was introduced to the Scottish market in December 2008 and, unlike its equivalent Home Information Packs which were scrapped in England and Wales by the Westminster coalition government earlier this year, Home Reports are here to stay.
CKD Galbraith are Chartered Surveyors but practice as estate agents in the residential market and do not conduct Home Reports on behalf of clients. However, being at the forefront of the buying and selling process, the firm believes the introduction has been an excellent innovation, bringing transparency and an element of stability to the market.
Bob Cherry is partner at CKD Galbraith and head of the firm’s residential division in the Ayr office. He said: “We are experiencing a buyers’ market at present, and it is helpful that the buyer is able to gain an independent opinion of value and condition report for the property. Surveyors who are on lenders’ valuation panels also provide a valuation certificate for loan purposes to be utilised by the buyer, obviating the need for expense on further valuations.
“It must however be noted that the surveyor undertaking the report is doing so on behalf of the seller. Valuation is not an exact science, and thus leading to a range of possible values for all properties. As the surveyor is commissioned by the seller, the tendency we have experienced is for the value to be at the higher end of the range. Of course surveyors can’t overvalue, as they have a professional duty of care to potential buyers as well as the seller. The effect of this is that in our current difficult market, Home Report valuations often represent a cap on the price which the purchaser is willing to pay, unless of course competition between several purchasers can be generated.”
In the current buyers’ market the traditional ‘offers over’ pricing has been replaced in many cases by ‘guide prices’ and ‘offers around’ as the report allows for more transparency with regards to the value of the property. ‘Offers over’ prices are still used in some instances, with the upset price pitched slightly lower than the Home Report valuation.
The cost of producing a Home Report came under scrutiny when first introduced as initially they were quite high. This has gradually reduced over the two years due to healthy competition among surveying practices.
CKD Galbraith believes that, from the viewpoint of both the seller and the buyer, using a genuinely independent surveyor is most important. Using one who is too closely aligned with the estate agent does undermine the whole purpose of Home Reports, is a disservice to the buyer, and may also be a conflict of interest.
About CKD Galbraith
CKD Galbraith is an independent property consultancy specialising in serving the needs of private clients. It employs over 180 people in offices in Edinburgh, Glasgow, Perth, Cupar, Inverness, Aberfeldy, Castle Douglas, Ayr, Elgin, Galashiels, Kelso and Peebles.
The partnership provides the full range of property consulting services across the commercial, residential and rural sectors throughout Scotland. The company enjoys a successful relationship with its associate firm in London, CKD Kennedy Macpherson.
The company’s rural arm specialises in farm sales and purchases, the management and sale of large estates and woodland, valuations and building surveying work.
7 Killoch Place
Ayr KA7 2EA
Contact: R A Cherry BSc MRICS
THE ELITE AYRSHIRE BUSINESS CIRCLE
CKD Galbraith's Ayr Office is a founder member of the Elite Ayrshire Business Circle.
The Elite Ayrshire Business Circle is an association founded in 2007 by some of the top companies in Ayrshire.
Its purpose is to publicise its members, and to celebrate and promote the wealth and rich diversity of entrepreneurial talent and business excellence that abounds here within the county boundaries of Ayrshire.
Members include the Clydesdale Bank, Ayr Racecourse, Western House Hotel and South Ayrshire Council, and member company activities include broadcasting, building and construction, architectural practice, estate agency and land management, chartered accountancy, insurance broking, legal services, golf club management, marketing services and brand creation, web design and public relations consultancy.
Frazer Coogans Commercial Solicitors senior partner Norman Geddes is executive chairman of the Elite Ayrshire Business Circle, and managing director is public relations consultancy Fame Publicity Services proprietor Murdoch MacDonald.
Founder members of the Elite Ayrshire Business Circle:
South Ayrshire Council http://www.south-ayrshire.gov.uk
Clydesdale Bank http://www.cbonline.co.uk
Turnberry Hotel and Golf Resort http://www.turnberry.co.uk
Ayr Racecourse http://www.ayr-racecourse.co.uk
Western House Hotel http://www.ayr-racecourse.co.uk/hotel.html
CKD Galbraith Property Consultants http://www.ckdgalbraith.co.uk
Frazer Coogans Solicitors http://www.frazercoogans.co.uk
Accident & Injury Claims Centre http://www.accidentclaims.com
MacKay Corporate Insurance Brokers http://www.mackaycorporate-brokers.com
Donald Ross Estate Agents: http://www.donaldross.co.uk
Westgale Ltd Building Contractors http://www.westgale.co.uk
Sinclair Scott Chartered Accountants http://www.sinclairscott.com
Paligap Creative Agency http://www.paligap.com
ARP Lorimer & Associates Architects http://www.arpl.co.uk
JB Management – Training Providers http://www.jb-management.com
Brunston Castle Golf Club http://www.brunstoncastle.co.uk
Fouters Restaurant http://www.fouters.co.uk
Christie Financial Planning Ltd http://www.christiefp.com
Allison Lightbody Waddell Chartered Surveyors http://www.alwsurveyors.com
Kestrel Press http://www.kestrelpress.com
Fame Publicity Services Public Relations Consultancy http://www.famepublicity.co.uk
West Sound Radio http://www.westsound.co.uk
Easton Kitchens & Bathrooms
For further information about The Elite Ayrshire Business Circle and to apply for membership, e-mail firstname.lastname@example.org