House selling etiquette. Dealing with offers and discussing subsidence with a potential buyer.

[marthabear]

Our house has been on the market for a week. Three viewings already with another four booked. We have received an offer 8% below the asking price. We would likely accept 5% below in the right circumstances. I would like to politely decline this offer and also give time for the other viewings to take place before accepting a further offer ( unless it's asking price of course). Would this be seen as messing potential buyers around? Also, there has been some leakage from a drain in the back yard a few years ago which led to heave to a part of the kitchen floor (classed as minor subsidence). The drains were fixed and flooring corrected under an insurance claim which also involved underpinning along one wall. The house is now sound with no ongoing problems. However I know the words subsidence and underpinning are a bit scary. I obviously don't want to put people off at the first viewing but feel I need to let them know before the SOLD sign goes up and anyone's money is spent on surveys. Any ideas on how to best approach this?

[Spickle]

It sounds as though you have plenty of interest from potential purchasers during your first week of marketing so I would think it acceptable not to accept the first offer you receive. However, is your EA aware of the minor subsidence issue and if so, is it mentioned in the sales particulars? This could have a detrimental effect on the price you achieve and would probably put a lot of people off. You only have to read some of the threads here where people query small cracks on a house they want to buy, and often the advice is to walk away! I don't think I would be put off at all but some people get very jittery at the mere thought of a subsidence issue, and it may be difficult or expensive to get house insurance.

[marthabear]

The EA is aware but the details are not in the sales particulars. The advice from the estate agent was to wait until a potential buyers second viewing before broaching it. I know it could be problematic and put people off but the fact remains that the problems happened, there's no getting away from it, and I need to tell potential buyers at some stage. I think I would prefer to tell them sooner rather than later for their sake and for mine as SOLD boards continuously being changed back to FOR SALE will draw attention to the fact that buyers keep backing out if that turns out to be the case. Preferable to explain all before accepting an offer I guess?

[Spickle]

I would hope that, by your honesty in being upfront before a prospective purchaser goes to the expense of surveys etc, that they will take a view that the problem has been fixed and that house is now much stronger due to the underpinning and should not cause any further issues. However, you know whatever way round you decide, it will be risky.

On the Sellers Property Information Form, you will have to disclose this issue and provide paperwork which ought to satisfy a purchaser though often surveys are done before the purchaser sees the Property Information Form. However, if a purchaser just gets a valuation survey (and they are not applying for a max mortgage), the "valuation" may be a very quick look at the outside where the lender is only concerned with recouping their costs.

[Madmog]

Regarding the offer you've received, it would be acceptable to go back and say you were looking for a little more especially as the property hasn't been on the market too long. Having said that a house is only worth as much as someone is willing to pay for it. It took us a week to agree on offer on our sale and then another week to agree on our purchase, so you have a few days grace if someone else offers.

Once you've got an acceptable offer, then at that time I would ask the agents to be honest. It would be good to lodge copies of any relevant paperwork with them so purchaser can have a good look, and then offer a further viewing as I'm sure they will want to good look to ensure walls/floors have not moved following the problem.