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.

I am very thankful for all the perspectives. They are very useful and welcome to navigate a system that we do not know well and find absolutely demotivating.

What sort of survey did you have? Its quite common for surveyors valuations for mortgage companies to be conservative - mortgage companies are looking at it as a risk analysis.

I second the recommendation to speak to the surveyor in person. I would expect the seller to say the derelict lean to was there to be seen, if its ancient cast iron guttering that was also there to be seen. You need an idea of the cost of likely works and the value with the work done. Then you calculate if its worth it to you. If its your forever home then you might be inclined to take on more work, knowing you will likely do it over time anyway.

Its not a matter of “correct form” its a business transaction like any other. Separate out the emotions, speak to the surveyor, get estimates for work genuinely needed (as opposed to possible future issues which appear in every survey). Also make sure you understand the impact of work - replacing a roof or repairing a roof is expensive but not that internally intrusive. Putting in new damp proof courses is a PITA.

Normal part of the process, why wouldn’t you?

You do need to think carefully about what you’re willing to pay - taking account of the repairs and associated inconvenience.

@C8H10N4O2 the survey was a rics level 2 survey with valuation, not by / for the mortgage company specifically (although i now need if the bank need sight of it or not)

my DH spoke to the surveyor who explained the report and all its aspects. The surveyor was quite clear that he believes in his valuation being fair and grounded on what he observed.

If you were to overpay by 10%, and house prices remain in the doldrums, or the AI bubble explodes taking stock markets with it, you could easily remain in negative equity for 5-10 years.

his valuation isn’t important- it’s the bank valuation that counts. What have they said? That’s the value they will base the mortgage off of. I’m not sure if the bank requires the survey, and if they lower the amount they want to lend you based on that figure, but if so that in itself is a reason to renegotiate.
And a rotting lean to? Could you see it was in bad shape? Is the roof actually leaking or is it more ‘will need replacing in 3-5 years’.
Subject to survey is normal. If there are serious issues (damp, structural issues, dangerous wiring) then you would need to get quotes and then negotiate some off, or ask them to do the repairs. The most you should expect is half as you are gaining the benefit.
This is one reason why you do surveys. To know what shape the house is in and if serious problems, particularly hidden ones, renegotiate. But no house is in perfect condition so you should expect some repairs (gutters etc). This is normal.
This is not gazumping, that when another party comes in and offers more and the seller decides to proceed with them. Gazundering is getting to exchange stage and then buyer demanding X off to proceed, whether justified or not.