AIBU to renegotiate after survey when we already had an offer accepted?

[FromthefireintoWhat]

We’ve had an offer accepted on a house in England back in April, subject to survey, and I’m now wondering whether it would be unreasonable to go back and renegotiate after the survey results.

We origonally offered 650 on 700 asking price, and 675 was accepted (subject to survey), but the survey has flagged quite a few issues. The biggest points are that the surveyor has valued the house at £65k less than the agreed price, and there are also several repairs and checks needed, including roof issues, guttering/rainwater goods, a derelict lean-to .

The seller is aware the offer was subject to survey, but we are quite far along in the process and I don’t want to be unfair or waste everyone’s time. At the same time, I also don’t want to ignore the report and just plough on at the original price when there are clearly issues and extra costs, which we might struggle to sort.

would you renegotiate at this point, or would you think it’s bad form given the timeline? is this gazumping? I’m trying to get a realistic feel - we like the house, the plot, the location but feel that the issues that the survey found should not be ignored (regardless how much we like the house and how nice the sellers are). I don t think they ve been misleading usnon purpose, they probably just don t know and their estate agent is a bit unreliable.

subject to survey

It does what it says on the tin.

I think it depends how many issues would have been obvious when viewing and therefore reflected in your offer (e.g. derelict lean-to, crappy guttering, rotten windows) and what the survey uncovered that you wouldn't have known about...e.g. hidden roof issues etc.

Assuming the market for sellers is weak as it is in most of the UK, you use the survey to seek another 65k off the price.

They may then refuse and then you haggle (if you like the house). I reckon you will get another 30k off the price at least if you play your cards right.

Very tough on the seller but unfortunately that is the consequence of Ms Reeves crashing the economy with tax rises compounding the CoL issues.

Renegotiate without embarrassment. My cousin has just been in exactly the same situation as your seller.

If it's 65k under the agreed price are you still able to purchase at the asking price? Unless you are a cash buyer I would expect your mortgage company to have concerns.

Definitely raise the question and see what they say.

Never ever put yourself into negative equity. Pay ONLY what it is worth. Current market value as per surveyor.

If the house isn't worth that following an expert looking at the issue then definitely don't pay that money. It's like agreeing to buy a cake, then seeing it has a bite out of it...you just wouldn't buy it.

You need to go back to the estate agent, perhaps show the surveyors summary and explain you won't be paying the agreed amount because of what it's turned up.

At the end of the day you are not contractually bound to buy it

Where was the derelict lean to hiding when you viewed the house?

Or did you know about that, so factored it into your first offer?

I think it’s bad form to try to knock off more based on what you’ve said.

Have you done market research? Do you think £675k is a good price for the area? A surveyor is not an estate agent or property sales expert. They’ll know the issues with the house but I’d be wary about taking their valuation.

Thank you for the perspectives

the derelict lean-to i m not so concerned about... roofing, guttering and drainage are big issues to us.

My understanding is that surveyors are valuers also? they certainly are where we currently live, but surveys happen before listing here and define the price.

£675k is ok for the area i think, at the upper end of the market maybe, but without structural issues, we were happy with the price - i just worry to pay for a house which will cost is a lot of money in roof and leak and drainage issues.

As others have said, subject to survey means just that and your offer could go down. It's been a while but it was my understanding that a mortgage would be based on survey as in 'bricks and mortar' and anything else you would have to find to top that up. Just a though. I don't think you would be unreasonable.

There are always so many factors at play when you are buying that it is hard to give "advice" as such, but I think I would go back to the EA, give them the survey, and say you need to take it in, and then discuss. You need to be fairly objective and unemotional about it (esp if it is a buyers market), this gets harder the longer down the line you are and how much you like the house. Whereas you should not mess the sellers about, it is a financial transaction, and go with what the experts are telling you., but remember they are probably telling you the worst case scenario, so you have wiggle room. My son bought a house recently and was slightly taken in by the honesty, integrity and empathy of the sellers who he had met twice, and he really loved the house which was "already in his taste" and the family lived there were lovely and genuine reason for moving etc.. EA kept impressing / pressurising that it was a seller's market and they already had other offers, and he would lose out. Both me and OH tried to convince him that it was a hard business decision, but no listening was happening. Result was he bought it. As it happens, it will hold it's value, and he has probably done OK. As for the seller, they hid all sorts of stuff (some picked up on survey, but lots that wasn't, some of it was quite sophisticated in the hiding, but costly, and actually quite cruel), they were not quite as they seemed. Although dependent on market, it is a bit of a 50/50 thing, buyers that expect to get every penny off the asking price because of a survey will get nowhere. Sellers that do not acknowledge any issues, will similarly, get nowhere. I only say "dependent on market" because we have bought in a rapidly rising market (mid '90s) and you could hardly get through to the EA, let alone get any offer accepted, at full asking or over. On the flipside, I have sold in a poor market, then watched the prices go through the roof the year after (have also sold in a rising market and been amazed). You win some, you lose some, I guess. Stay calm and impartial, and good luck x

Would lower estimation affect your mortgage offer? If yes I would definitely try to renegotiate the price. also if issues were flagged up as needed immediate attention.

Why has it taken you 3 months to get the survey done??

solicitors' advice as memo of sale was not forthcoming

Of course, otherwise what is the point of having the survey. You find have trouble with the mortgage too if house is over priced. I’d look at what is essential work and find out repair costs and re offer. If you have to pull out, then do. You need to go with your head not your heart, or it will cost you a lot of money.

The buyer (you) reducing their offer after a price has been agreed is gazundering, not gazumping.

The mortgage valuation being £65k lower is your big negotiating point here. But re-negotiate you must, although it's very likely to get everyone's backs up after all this time.

You haven’t mentioned ‘in love with this house’ or ‘forever home’, which is good.

Paying £675k for a house valued at £610k is crazy, you need to get it down to £610k, maybe £625k. Otherwise pull out.

To pay £65k cash means you need to have earned over £100k. How many years of going to work would that you?

Revise your offer by £65k less, it’s a no brainer. If the sellers won’t budge, fine, walk away. There will always be another house.

Roughly how much would the repairs be?

The roof issues you could not have seen when visiting, but the other ones should have been visible to you.

I think you should just walk away.

Of course you can renegotiate.

Don't be afraid to revisit the price, or walk away if they won't discuss.

Drainage, guttering and roof work aee all essential in relation to damp and rot. They are also expensive.

@FromthefireintoWhat have you had a conversation with the surveyor about the extent of works and remedial costs? Is it worth £65k less once the work has been done or does the £65k reduction take into account the cost of the works.

It sounds like a potential swerve.

I think surveyors often down play the value- weve had this with a property we were selling and we ended up agreeing a reduction as we wanted quick sale. Guy then tried to get further reduction and we told him to get stuffed and put it back on mkt. Got cash buyer for £10k more than pre-reduction price in the end. So surveyors valuations not always reflective of what the market will pay...

Having said that fairly common to renegotiate after survey. But sellers likely to want proof so you might need to provide extracts from your survey. Don't let them have whole survey though - as then they've got one for free!

Surveyors'priority is to protect themselves from law suits so they will highlight absolutely everything. It doesn't mean all the things they mention is about to fall apart.

Ours came back with such a list, my OH completely panic and was going to step out. However, the property is very old, so all the things highlighted were fully expected. The house is absolutely fine.

In the end, it's up to you. They might agree if they are desperate, they might tell you to get lost out of principle. How much do you really want the house?

really interesting to read two quite different schools/approaches here

for example i would have not thought twice about sharing the survey with them. The entire thing is quite common where we are, where the vendor purchases a survey for the benefit of the buyer.

To some extent, I also feel annoyed, because we asked and understand that this property has fallen through once, so there must have been a reason. They were not particularly forthcoming with any information about why which is fair enough. This is by the by, but I wonder whether they knew about the roof not being good.

My understanding is that the valuation is with the property as it currently stands, and the price we agreed is what the surveyor calls top of the market in a tip-top condition. Having re-roofed the property we're selling at the moment, I am not sure I want to go through that again in the very near future, both through cost and through the drama associated with it.

@KatiePricesKnickers - £65k is not far from a year of my husband annual pre tax income, so yes, a lot. We cannot afford to just swallow 65k worth of potentially unforeseen expenses to deal with re-piping and drainage. My position is that the surveyor has potentially been a little conservative because they have to protect themselves and us, and I we're not flagging things like the lean-to of things that we've seen ourselves, but anything to do with water ingress really freaks me out.

I am not even sure how this impacts the mortgage. We are going to port our mortgage from here to there and add a little top-up mortgage to complement as well. The bank has not been particularly communicative. I know that there is an offer with our solicitors, but I need to check whether there are conditions that the offer will be revised in the light of the survey that we've carried out.