Homebuyers reports

[nooka]

I'm selling my flat and buying a house at the moment, and have just received my surveyors report. My report says that they can't give a valuation because the house needs remedial/modernisation work which are "very substantial nature and extent of proposed works". But then it says that with some documentation of previous works the market value is what I am proposing to pay. The issues seem to be whether previous work was up to scratch, damp in the floors and timber, and an electrical check (oh and asbestos in the garage) to be honest I can't see what the substantial works are (given that the house needs a new kitchen, bathroom and conservatory re-build).
The estate agents for my place say that the survey for my flat has also shown up problems, and my purchasers are having a timber and damp check, and electrical and gas checks.
My questions are - is this now the norm for older properties (both over 80 years old)? Are the surveyors just playing safe - or are they generating work for their mates, or should I really be worried?

They do like to pay very safe. The two times i've bought and had surveys done they have listed a zillion things that may need doing - damp, flat roofs electrics etc.

Those that we suspected anyway, we had budgeted to do so not a problem, and other stuff we just ignored assuming they are playing safe and both houses are still standing! .

The only reason i'd be concerned with your report is because they won't value the property.

I would get some experts in to inspect and quote for the work that would need to be done - if any. Then you could send copies of the quotes to your estate agent, requesting the sellers to reduce their price in respect of costs. Alternatively, if you would be able to afford the costs and would rather not risk losing the property, continue with the purchase.

You have to consider your sellers position. Ours were desperate to sell and we bought from a local business, so they took £1500 off our price, when we showed a quote for damp.

Alternatively if your sellers aren't desperate to move, and possibly not in good financial position, they may be keener to say no to your first request.

Thanks Hattie, I remember when we bought being a little freaked at the survey, but that was 10 years ago, and we have had no problems. I think I will ring the surveyer up and ask what the substantial works are, so I can figure out if they are the things that I was planning to do any way, or something extra. I just think it's interesting that the buyers of my place seem to have had such a similar report.

Nooka, my experience is that dodgy surveys are par for the course for older properties - the question is the extent. First time buyers do get a bit freaked. Surveyors cover their backside and recommend more investigations. For the house you are buying, I presume you have estimated the cost of remedial/modernisation work and factored that into the price even before making the offer. But the hidden costs that could blow out your estimate out of the water include big ticket items like installing central heating, new roof, structural issues, damp and rot, asbestos. I would shell out for a full structural survey and timber/damp survey, particularly if they are recommended in the homebuyers' report. Better safe than sorry, otherwise the words "money pit" spring to mind.

And if the additional investigations throw up issues, arrange to renegotiate the price as Hattie advises. Remember that what you do to the seller is also likely to be done to you in relation to the flat you are selling.

Yes - it's the hidden things I am worried about, as there are always some things that have to be negotiated around, and I am happy to do that on both ends. As I am expecting to do major works to the new place it's not too freaky - just a matter of cost, and whether they will drop the price. The estate agent said they would organise all the specialist quotes, so I will ask her to let the seller know that there could be some major costs involved, and check that the seller won't be stubborn on price - if there are £10k in costs for example, I'll need her to drop the price fairly substantially. I'm glad I haven't fallen in love with the place.

nooka, can you trust the estate agent's quotes? I would feel better to arrange them myself, so that the "specialists" the agent is using is not beholden to the agent. From the agent's point of view, they would want the remedial quotes to be as low as possible to avoid the sale falling through ...

£10K is a lot but not A LOT compared to the what the total costs could possibly come up to. It took £16K just to sort out structural issues and damp and timber treatment in my case. The seller used his "contact" and only got a quote of a few £100 for the damp treatment - ha!

Nooka, most surveys don't automatically include a valuation. If you wanted one, you should have specifically requested this when instructing the surveyor. Some surveyors charge extra for including a valuation. So I wouldn't read anything sinister into the fact your survey hasn't got one.

I used to work in the property industry and a lot of property professionals don't have surveys done when they buy their own houses, on the grounds that surveys are so riddled with exclusion clauses that they are not worth the paper they're written on. The best thing you can do is walk around the house with a builder, asking him to point out any problems.

Don't be too worried about the asbestos. Most older properties have this, and as long as it's not disturbed it is not dangerous.

i agree with the issue of damp. we were going to buy a victorian house and i thought the damp would cost a couple of hundred to sort out but once the experts included replastering, VAT etc etc, just putting in a damp course cost around 2,000. And we would have wanted it done by the sellers before we moved in, cos we have a baby. Installing central heating is also very pricey. Have you thought of asking the sellers to see their structural survey? even if it is a bit old, if they prevaricate or don't want to show it to you, that will say a lot.

Thanks everyone, some good points here - I hadn't thought of the Estate agent's vested interest. Unfortunately I'm going away tomorrow for Easter, so wanted to get things in train. There are five or six estimates/inspections required so it's quite a bit of organising. Also she's very nice (not that that should make a difference!) I didn't specifically ask the surveyor for a valuation, but obviously the mortgage people are interested! It's more the fact that he specifically said that he would normally give a value but he can't do so because of the "very substantial nature and extent of the works" that scares me! Of course he might have been mostly referring to the things I know need to be done - ie the kitchen, bathroom and conservatory. But then I thought I'd got the price right - now I am wondering...

Oh, and the damp is scary - it's most of the ground floor, and several areas upstairs, so I think that's probably the biggest potential cost. Hopefully my solicitor will have some good advice for me tomorrow, and I'll see what the surveyor has to say on Friday when he's back in the office. It's not my dream house though, so if the costs don't add up I'm back out on the trail.