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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

If I ask for a price reduction, is the Vendor likely to pull out?

33 replies

lilyheather1 · 15/09/2017 12:40

Hi all,

My dp and I have just purchased our first house, a sweet end of terrace with two whole off-road parking spaces!

We've just had the results of the structural survey back and the costs for works that need to be completed immediately come to around £7,000. We have purchased the property for £255,000 and the structural survey, when taking into account the damp and apparent beginnings of rot on some of the floorboards have valued the property at £225,000.

If the difference between what the property has been sold for and the structural value wasn't so large I wouldn't mind but the big gap has got me worried. Issues with the damp and the rotting seals on the wooden window frames I would like to sort as soon as we're in.

AIBU to ask to drop the price to £250,000 to cover the costs? And is the vendor likely to pull out if we do?

OP posts:

5rivers7hills · 15/09/2017 12:44

So the value has come in at 225 and you want to pay 250?

You're mad.

Buscake · 15/09/2017 12:47

I wouldn't pay more than 225... is the property going to be mortgaged? I doubt the lender will lend you enough if the survey was carried out by their valuer. it's so stressful buying a house isn't it?

HPandBaconSandwiches · 15/09/2017 12:48

YABVU
You explain what has been found, detail the costs to put it right, and suggest they need to come down to £225.
If you pay more than this your mortgage company may not accept it.
If it's not worth what you offered you need to reduce your offer and be prepared to walk away.

Allthebestnamesareused · 15/09/2017 12:49

Do you mean you are about yo purchase rather thsn just purchased? If you have already purchased you are too late.

If you haven't exchanged you can ask but there is a risk you'll piss them off and they'll pull out.

How much do you want the house? Would you be prepared to lose it? Perhaps show them the valuation too to support your request because it may mean future buyers will only be able to pay that.

Also if you are having a mortgage is the lender still prepared to lend the amount you require or are they retaining any amount?

twinone · 15/09/2017 12:49

Be honest with them.

We had an asking price offer of £575k accepted. Survey valued it at 390k.
They could do nothing else but drop the price as any other interested parties would have the same issue.
We did go to £400k but very, very reluctantly.

Takeoutyourhen · 15/09/2017 12:54

How exciting for you!

Damp seems to be commonplace in period terraces if that is what you plan on buying. You'll want to get some damp courses in place and repair what has already been damaged (and disguised).

I've had experience of this myself but it went beyond damp and actually a whole chimney breast wasn't safe and the floor of the bedroom was dropping and we observed how much it had started sloping during our visits. The work equated to a hell of a lot, in light of this we put forward a lower offer.
And they were insulted!
I'm glad that we saw past the initial materialistic design of the house as it just disguised a lot of problems. We were gazumped and good luck to the buyers I say who ended up painting the outside of the property straight away. Presumably they didn't know about the lurking structural issues as the frontage paint colour would be the least of their concerns!

You may be dodging a bullet potentially. Do you plan on renovating inside?

ShatnersWig · 15/09/2017 12:56

You should withdraw your offer and reduce it to £225k because of the survey. That's perfectly reasonable. If they withdraw, well, it wasn't to be. You'd be barking mad to offer £250k knowing you may need to spend considerable sums to put things right. That's why you have a survey done!

Original poster

lilyheather1 · 15/09/2017 13:02

Hi all!

to clarify, the mortgage offer has been agreed and they have carried out a survey agreeing the market value of £255,000. It is the structural survey that revalued the property at £225,000 based on their report.

OP posts:

peachgreen · 15/09/2017 13:29

I'd get a proper damp expert in to do a quote (make sure it's a reputable provider). That will give you a clearer picture. Our survey estimated £10k of damp work, damp specialist said it was condensation, not damp, and could be sorted for less than £500.

Regardless, you should negotiate based on the survey results. They're always over-cautious so I don't think you need to go down to £225k (given the mortgage company are happy to lend) but you certainly need to negotiate and meet in the middle, closer to their end! Our vendors knocked £7k off which we were happy with.

KurriKurri · 15/09/2017 13:37

You have to take emotions out of the eqation when you buy a house. A £30K difference in value is a huge one on a small property.
You say there is £7000 of immediate work to be done, there will also be slightly longer term work to be done - that increases the value/price gap. You will be spending a lot of time when you move in having work done on your house - which is both inconvenient and stressful.

In all honesty I would offer what it has been valued out and if the vendor won't come down (and I doubt if they will) then I would pull out. There are lots of terraces out there and basically they are all pretty similar in the area where they are (I live in a terrace, I love it but my house is not unique) there will be other at the same price you intitially offered that don't need work, that will be equally nice.

Whatever you do don't spend more tha £225K on it - you won't make that money back, and that level of work neded (30K) cold end up being a reall millstone round your necks.

wheresthel1ght · 15/09/2017 13:40

You need to talk to your mortgage lender, the structural survey may be taken into account by them and they may refuse to lend the full amount now.

All you can do is make the proposition to the vendor and see what happens

SoPassRemarkable · 15/09/2017 13:51

Do you think the mortgage valuation price is right when looking at other sold prices in the area? Not for sale prices.

If so then I would knock 10k off the price and come down to 245k due to work needing to be done. 7k quote, extra in case it goes over plus some for hassle.

And I would point out to vendor the structural survey valuation and say they ought to be happy you don't want more off.

If you think it's overpriced compared to other sold prices (prices are dropping in many areas and people are offering under) then offer 225k.

Puffpaw · 15/09/2017 14:01

Whereabouts are you? The market is falling in many places so I'd be pushing for a good reduction. You can get the EA onside as they will know the issues you have found will come up for other buyers too, and they will want to close the deal.

missiondecision · 15/09/2017 14:02

I'd tell them your findings.
You can only ask, I'd not pay more than survey amount.

dumbledore345 · 15/09/2017 14:02

It's down to supply and demand.

How long has the property been on the market? How keen are the vendors to sell? How many similar properties for sale are there in the area?

If the house is rare and the vendors have time they may decide to hold out for a higher offer. If it is an ordinary home with other similar ones on the market nearby they will probably accept the reduced offer.

Original poster

lilyheather1 · 15/09/2017 14:07

For the area £250,000 is a fair price for the type of house in relation to the area (South East). However with the work that needs doing, I'm inclined to reduce our offer to £240,000 or a bit less. We have been completely transparent with the vendors and have sent them a copy of the structural report as a sign of clarity so they are well-aware of the issues that have been discovered by an impartial third party. I'm going to speak with our mortgage broker and get his opinion as I agree this may throw our mortgage offer into disarray.

Our estate agents are saying that structural reports always exaggerate in order to protect themselves from legal action should you discover something about the house post-completion. I agree with this to an extent, but to the tune of £30,000? Probably not.

Thanks everyone for your help, it's a nightmare trying to get on the bloody ladder!

OP posts:

Doje · 15/09/2017 14:13

A professional, who's job it is to value houses, had told you that the house is not worth more than £225k. I would not pay more than this personally. Perhaps £230k if you love it.

Doje · 15/09/2017 14:13

Crap, whose job!

MyDcAreMarvel · 15/09/2017 14:16

The mortgage offer is not final they will likely reduce it, offer 225.

Hissy · 15/09/2017 14:20

Your EA are potentially telling you that so you don't reduce the price and reduce their commission...

Imagine if you were a bank, in this current climate of uncertainty, would YOU lend £255k on a property that an expert has state is only worth £225k?

I had this with my house donkey's years ago - the mortgage offer WAS reduced and We stumped up the difference, because it was only about £7k and the market was going off like a rocket As the sale took months to complete, the day we moved in we'd already made £20k on the price we'd agreed 3 months prior. When I split from my Ex a couple of years later I personally made £50k.

This market is very different to the one back then, lenders are much more cautious too.

I would suggest to the EA that his client looks very carefully at the report you have been given and make a suggestion as to how much the price will come down by, and let's hope it's compatible with the mortgage company offer.

The other option is that they get the issues fixed and resurveyed...

If you pull out, they will remarket and the same will happen again... they are charging full market price for a property with damp and rot.

Witsender · 15/09/2017 14:23

Their other option of course is to rectify the issues themselves and get it re-surveyed.

ChelleDawg2020 · 15/09/2017 14:23

I would tell them your findings and ask for a price reduction accordingly. They may tell you to piss off, which is their right. But unless there are very good reasons I would not pay such an amount over the actual property value.

bbcessex · 15/09/2017 15:03

Did the mortgage company do a valuation?
Have you got a giant deposit? Unlikely the bank would lend 10% over valuation unless you are only borrowing a small amount.

fwiw.. most vendors have an idea on condition of their property, hold their breath and cross their fingers at survey time if the house is of age.

It's entirely reasonable to reduce your offer based on survey findings, which is what I would do.

Original poster

lilyheather1 · 15/09/2017 15:21

To my knowledge, the mortgage lenders did not do an internal survey if that makes sense? Instead it was looking at properties of a similar size , age and area and judging whether the price asked for was correct. We have a 10% deposit and aren't on any help to buy schemes.

I think its most definitely true the vendors probably knew of the issues and just kept shhtm and hoped we wouldn't find out; now we do know, I will be approaching the estate agents for a reduction. I'm going to speak to our solicitors to see what they would suggest is a feasible offer using your suggestions as a guide. Thanks so much everyone! :)

OP posts:

devilmaycarry · 15/09/2017 15:30

You say "our estate agents" earlier - do you mean the seller's agents? If so, then they're not your agents they're the other guy's agents.

Be 100% clear at all times who is working for who. That applies to solicitors, surveyors, agents, etc. It's really important that you're clear about this, because some of them have responsibilities to you and some of them don't, and you need to know the difference.

The seller's estate agents will be nice to you, but you're not their customer - the seller is.

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