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

[lilyheather1]

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?

Your solicitor will not advise you regarding an offer as they do not have the expertise and you coukd sue them for negligent advice. It is your surveyor you should be speaking to for this advice.

Our mortgage app for 99k was accepted on a property with asking price if 110k, when the surveyor did their checks they said the property was only worth 100k, as we had to put 10% deposit down this meant the mortgage offer was reduced to 90k - the bank wouldn't lend more than it was worth (% of deposit inc)

Luckily the vendors dropped the price so we didn't lose the house, but I'd chat with your mortgage advisor not your solicitor in regards to whether this affects your mortgage - more than likely will, as they won't want to lend out more than they can retain should you not keep up with the payments

How frustrating

IME these reports are overly cautious though and sometimes defamatory or negligent on the vendor

I'd be asking the vendor to rectify or getting a second opinion, personally.

It totally depends on the market.

If you live in a desirable area there's no way you can just drop your offer, the vendor would just instantly pull out and go to the next in line. Where I live houses are going for 30K+ the asking price, which is well over the valuation price to start with.

I feel very jealous of those for whom offering less is an option!

devil the estate agents are working for themselves! If they think they will get a deal done and get the commission sooner they will pressure both sides. I have had to remind more than one estate agent they are working for me when selling. They are not professionals, they are dealers.

Give the sellers the option to fix the problem or reduce the price. Do not contact the bank at this point. They don't always use a survey this detailed.

Damp is a nightmare in a terrace because you have shared walls. You need a neighbor willing to work with you to fix the problem. When it comes down to it you should expect to pay their share as well as yours to fix the problem or live with it.

Be prepared to walk away.

But you say the mortgage people have said it is worth the asking price? Those surveyor valuations always come in at under, have never known them not to. I have never reduced an offer, it had an offer on one of my houses reduced on that basis.

Get a second opinion i serously doubt its worth far less because of a bit of damp even 7k of works would not knock 30k of value off a house i would be expecting some serous fault (aka bowled roof , sumsidance etc) remeber these valueations are always low ball because if they are too generous they can be sued so they always go much lower.