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AIBU?

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Original poster

to put in a lower offer after the surveyor's report

45 replies

AltShiftDelete · 16/01/2012 09:38

First time buyer.

Put an offer in on a house before Christmas and the surveyor's report came in just before the hols. There were loads of niggles and it was described as a headache house which he then valued at 8k less than our offer. We offered the report to the EA and they had to get people in to assess fixing the niggles. This could only be done last week.

Well the quote has come back, missing half of the niggles and focusing on the easy to fix stuff. This totalled 3k and they've offered to reduce the price agreed by that much. However, one of the outstanding issues could be a few thousand to fix.

As we think they've had their chance to get proper quotes and have failed, we're going to offer the surveyor's valuation (the one 8k below the orginal agreed price).

Is this reasonable? The EA inferred that the vendor could only afford to drop the reduction above or she would have to drop out of the chain. I feel ridiculously naive.

OP posts:
DelGirl · 16/01/2012 09:42

As a ftb assuming you are borrowing, would your lender offer you more than the valuation anyway? Doubtful I would have thought and if it was me I would offer the valuation price too with maybe a tiny bit of room for negotiation perhaps.

DelGirl · 16/01/2012 09:43

also depends on what the house is on for too?

coraltoes · 16/01/2012 09:44

Definitely!! I reduced my offer by 50k on my last house after a whole host of issues flagged in the surveyors report. It was accepted. You'd be a fool not to at least try. Good luck.

AKissIsNotAContract · 16/01/2012 09:45

It is reasonable but you might have to accept that the vendor will refuse the offer and you'll be back to square one with house hunting.

Yesmynameis · 16/01/2012 09:46

Very doubtful that your lender will allow the transaction to proceed at a price over and above the valuation, unless you are taking out a very small mortgage.

Have you received your written mortgage offer? Have they talked about placing a retention on the mortgage for the outstanding works, and if so how much

coraltoes · 16/01/2012 09:46

Sorry my advice would be, ask for the full amount off. In the meantime consider what you would be willing to accept as a counter offer. I she says only 3k off you might suggest meeting in the middle at 4k and so on. She might say she will drop out of the chain but that doesn't mean it is true. Test the waters. The pressure is on her to keep the chain going not you. A a ftb you are in the best position as you have no sale to worry about, just a purchase. Let her sweat.

SarahBumBarer · 16/01/2012 09:51

Offer is usually subject to surveys and contract and even if not explicit is understaood certainly by the EA as such. It is entirely reasonable to drop the offer. And the vendor will know that if she refuses she is highly likely to end up in the same position again if the next buyer or mortgagor has a survey done.

TroublesomeEx · 16/01/2012 09:57

Surely if she doesn't drop the price for you to account for the work she'll only have to do it for any subsequent potential buyers anyway?

It doesn't matter what the EA has said, a house is only worth what someone will pay/can get a mortgage for!

ZillionChocolate · 16/01/2012 09:58

IMO YWBU not to drop your offer! This stuff will come up for whoever buys the house. If it's unexpected, then the value of the house only stands if the work is undertaken. The seller has two options, renegotiate on the price, or get the work done to your satisfaction.

(I bought my first house last year, despite the survey, there was lots more wrong with it than we expected, and we've had to spend a lot more than we hoped. If you don't negotiate now, you'd be giving away your contingency budget and you'll kick yourself).

queenrollo · 16/01/2012 10:04

Offer the valuation price.

When we bought this place we offered 10k under the asking price and the offer was accepted. Then the surveyors report came in and valued it down by a further 20k.
We spoke to the EA and explained the major issues. We could not afford to offer over the valuation so we told them to resubmit an offer to the vendor in line with the valuation.

They came back and negotiated us up by 2k - which given the drop they were facing on the asking price we went for. We could only afford to do this because we were in a position to 'find' the 2k. (any more than that and we would have walked away)

Our vendor had to concede that it was never going to be valued at more, and in fact if he held on for more money the value of the house would keep going down. (market falling, the state of repair would deteriorate etc)

Original poster
AltShiftDelete · 16/01/2012 10:06

Thanks - the reduction we're asking for is nearly 3% so not huge but i guess every 1k counts!

OP posts:
Original poster
AltShiftDelete · 16/01/2012 10:08

Thanks for the 'case studies' too ladies. Feel a bit more confident now.

OP posts:
tyler80 · 16/01/2012 10:08

How much was your original offer relative to asking?

daenerysstormborn · 16/01/2012 10:10

i would also only offer the valuation price. if you pay more than it's valued at, you're already in negative equity before you've even moved in, and with the housing market as it is atm, i think you can afford to stand your ground given you are a ftb.

but in the end the decision will be based on how much you want the house and what else is on the market if this one falls through.

TheSecondComing · 16/01/2012 10:11

This reply has been deleted

Message withdrawn at poster's request.

Original poster
AltShiftDelete · 16/01/2012 10:12

Asking was originally 350 but the original buyer pulled out and it was put on the market at 339 to keep the chain going. We had a 333 offer accepted. Now we want to pay 325 because of the surveyor's report.

OP posts:
Original poster
AltShiftDelete · 16/01/2012 10:13

The bank surveyed it at, surprise surprise, 333k. The banking survey's appear to do bugger all.

OP posts:
Theonewiththehair · 16/01/2012 10:13

We had the same problem and we did drop our offer to the surveyors price. The vendor refused and so we walked away. (No way I was going to pay over market value for it).

At 9 o'clock the next morning the EA rang to say they would accept our offer if we were still interested.

At the end of the day it is the vendor's risk. the next people to come along could have a lower survey than ours.

My advice would be to offer the survey price and see what happens.

Original poster
AltShiftDelete · 16/01/2012 10:13

surveys not survey's - aargh

OP posts:
mishtake · 16/01/2012 10:14

There is definitely no harm is putting in a lower offer. The vendor can always refuse.

I have just pulled out of a sale (as the vendor) because an out of town surveyor who knows nothing about this local property market chronically undervalued the house.
The buyers tried their luck with his valuation for it but they were dicking us around so much that I pulled the plug. (Turned out they were developers looking to make a quick buck).
In this instance the surveyor was an ill informed moron and buggered the sale completely. He admitted afterwards actually that he'd got it wrong.
Good luck.

queenrollo · 16/01/2012 10:15

in that case definitely stick to the valuation price!

How long has it been on the market?

We subsequently found out that our vendor had lost two previous buyers by ignoring valuation and pushing for more money. One in the previous year and one about 6 months before our offer.

DublinMammy · 16/01/2012 10:17

Definitely make a reduced offer. You don't ask, you don't get! Good luck, very exciting to get your first house.

SarahBumBarer · 16/01/2012 10:18

Well assuming that the banks are requiring a decent deposit (usually more than 10% these days) they have a reasonable degree of protection built in anyway - you lose your money before they lose theirs.

ZillionChocolate · 16/01/2012 10:19

I would also add that you shouldn't feel bullied by the estate agent. Be nice, but be firm. If you can pass the buck to the mortgage company (who will only let you pay X) so much the better. Look confused if the EA suggests you should pay more than the professional you instructed said you should pay. It's in their interests to get the house sold, it doesn't matter too much to them about modest variations in the price. Chances are, if you appear to be firm in your offer, they will put the pressure on the seller.

I put an offer in on a house about a year ago which was £25k under the asking price, it was rejected and the EA whined on at us about how it was worth more etc etc. We refused to go any higher and bought elsewhere. I've just checked and the same house is still up for sale but now with an asking price of what we offered. A house is only worth what someone with the money to pay is willing to pay for it.

mishtake · 16/01/2012 10:23

Surveyors are not all-knowing gods - a property is only worth what someone is prepared to pay for it. A surveyor is only guessing at a valuation just as much as an estate agent. (Plus surveyors work for buyers so he who pays the piper calls the tune really!)
When our property was viewed by 5 estate agents. The difference in price between the highest and the lowest was £115,000.

OP - what position is the vendor in? If they need a sale then you could be laughing. If, like us, they are in no rush then they will hold out for best price.