ADVICE: Buyers Hesitant After Survey – Already Priced Low & Marketed as Investment Property Requiring Refurbishment

[Eggybreadwithnuts]

Looking for advice: buyers pulling out after Level 2 survey – priced low to reflect condition etc.

This is the family home my dad lived in for many years. He sadly passed away a year ago, which is why we’re now selling. The house was built circa 1960 (so around 55 years old) and is being marketed as an investment property, in need of full refurbishment.

For info:
Valued at £300,000-315,000 - we put on for that price on advice of estate agents but then due to amount of work,and for a quick sale and we put on market for £285,000 accepted offer of £278,500.

Agents have been upfront with potential buyers that an elderly person lived there and that the property requires updating throughout. We accepted a lower offer with this in mind — the price reflects the condition and the need for improvement.

The buyers have now had their Level 2 survey, which has flagged several expected areas needing attention. A couple of points are not quite accurate, and we have evidence to correct them.

They are now saying they won’t move forward due to concerns raised in the report, unless we agree to contribute towards the cost of a second survey.

Any advice appreciated!!!!
We really don’t want to lose the sale, but feel we’ve already priced the property fairly to reflect the work required. Has anyone been in a similar position?

Would you contribute to a second survey, or do you have advice on how best to proceed?

Thanks in advance.

No, it’s completely up to them to pay if they want a further survey.

I get that and can see why they would want to do it and it will flag more up Im sure. But we knew this, its an old property in full need of work and we reflected this in the price etc.

Depends why you want a quick sale. Sounds to me like they'll try and negotiate the price down further if they get a 2nd survey. Are you prepared to take even less? If not, tell them to jog on and put it back on the market reiterating that the price and their offer already reflects the work that needs doing.

It sounds as if they don't want to buy it at the price they offered, regardless of what you think it is worth.

You can either accept whatever they finally offer, try to negotiate, or let that sale go and wait in hope of getting a higher offer.

They don't have to buy. You don't have to sell.

I wouldn’t play the games. Am investment property will need work, often more than you expect. I’d say we’ve been very open it needs renovation and of course a survey would flag this. It’s reflected in the price. Please confirm if you’d like to proceed or we will put the property back on the market. No faffing, just move on.

Could you ask for a copy of your contribute so at least you have it if the sale does fall through & you come up against the same issue with new buyers?

How long has it been on the market?

They’ll know it’s a probate sale, and that the house needs modernisation. They benefit from a lower price to reflect that and no onward chain.

What extra survey are they wanting?

Do you have the grant of probate?

Yes we and estate agents have told everyone that. All very upfront nothing to hide. Selling due to deceased parent. 1 other family member still lives in property (looked after elderly parent) is having the bulk of the funds to purchase own property. No upward chain.

Been on for 12 months. But market has been at a standstill now it's moving.

Priced to reflect age and work needed plus wanted a fairly quick sale due to family member wanting to move on with his life now and move nearer to work after looking after parent for last 10 years plus house far too big for 1 person.

Im assuming a level 3 survey. This one was a level 2. When I googled level 2 it said this was really for 'not old houses and houses in fairly good repair'. They know the property is 55 years old and in need of an overhall. They are very young, 1st time buyers, so prob abit new to it all.

Will see how it pans out.

Think we need to first address the areas that are incorrect in report...have paperwork for proof.

Need to discuss with family if we stick to our guns and say work needed is reflected in the price etc. Or if we are prepared to reduce even more.

Something else to mention is...

House next door same situation parent passed recently they are in no rush to sell at mo so have put it on for £325,000 - have just accepted an offer for £315,000 needs the same overhall as ours but she stuck to her guns as not in any rush to sell. They havent had a survey done yet.

Also house 2 doors up sold 18 months ago for £320,000. Family who moved in have gutted it. Do we state both the above to again show that we priced at a much lower rate to reflect work needed and for a quicker sale.

Who are the beneficiaries? If there are a number of them the executor needs to get the best price they can, they hav a duty to do that, obviously they also need to be realistic.

Level 3 survey is a full structural survey, usually for much older properties / non standard construction type properties.

I think first time buyers are more likely to be twitchy, so anything you can do to reassure at this stage will help. Wiring, plumbing, roof, windows, boiler etc.

What has your conveyancer and EA said?

Just really happened, but all estate agent has said is so far is ...

We need to keep this sale moving and contributing to a further survey means you would have access to the report as well.

I think they are steering us toward dropping the price even more.

There were some strange things in the report like...

"Some windows didnt have keys in the lock...safety risk".

"Kitchen old and needs updating"

Contribution to another survey is just their step to another reduction in price.
Tell them to pay themselves, as it's just a tactic and not really needed. You've already reduced the asking price right? If there has to be another reduction to clinch a sale, your job now is to make it very much a token reduction than a substantial one...if you are not minded to put it back on the market.

Did the surveyor value the house in their report?

I’d be tempted to go back and say that you’re aware of the modernisation needed, and that’s reflected in the list price and offer accepted. As demonstrated by price compared to others on the street.

First time buyers can be very twitchy about surveys especially as, being honest the first time you read them they are quite scary!

after a bit of experience you work out what’s actually serious and what isn’t

first time buyers and renovation property could be a tricky combination.

I think insurance companies generally recommend not leaving keys in window locks.

And you’ve priced the kitchen updating into your asking price?

I'd stand firm and tell them no and get ready to remarket the house

This.

Just say no.

Not sure about that...will look tomorrow. Would they usually do this?

@Octavia64 Agree, when I read through I was 😳 ...only ever moved house once!

There were a few things like...pointing coming away slightly which you would expect for an oldish house etc.

And bizarrely 'built near an old coal mining area, so may be built on clay".
The estate of houses is nearly 55 years old, not a coal mining area at all.