Tips for negotiating on price after survey

[mushroomsandolives]

hello,
We've had our survey back and it looks like the house we're buying needs a whole new roof. We knew that there was some repairs needed, as there was a large leak down one side of the house when we viewed (all three times!). We made our top offer on the proviso that the roof was fixed, but instead, the vendor got a quote for a repair and knocked that off the offer so we could get it fixed. The vendor doesn't live in the property and is across the other side of the country, so it's tricky for her to arrange. We thought that was okay and got a copy of the repair quote in writing before proceeding with survey, etc.

Now our surveyor is saying that extensive work is needed and the roof is basically knackered. We're getting a quote from a friend of a friend who is a roofer, to see what it would cost to replace the roof completely like the surveyor said was needed.

The plan is to get this new quote in writing, then go back to the vendor and try to get some money knocked off. However, when our top offer was accepted, the vendor said that she would not be shifting on the price whatever the survey said. So I have a feeling we could not manage to get anywhere...... However, we did offer our top price on the proviso of the roof being fixed!

Any advice on how to handle this? We like the house a lot and don't want to pull out - especially as we've paid for the survey and searches already. We'll probably proceed even if the vendor won't budge on price, but I would like to know how we can get the vendor to bend! Any ideas? I'm no good at negotiating, I'm far too invested emotionally to be cool and be strong!

I think absolute honesty/bluntness is the only way with this kind of thing. Tell the vendor what the situation is and emphasise that you love the house and are still very keen to continue with the purchase.
Offer to show them the surveyor's report and plant the seed that any other buyer will face exactly the same problem.
Finding a new buyer again will be very inconvenient/time consuming/costly so hopefully the vendor will stick with you.

In 2003 when the housing boom was just starting we had a similar issue. On top of everything we were competing against another buyer. Survey returned a list of issues (damp, roof, outdated elec/water, etc). I wrote a very detailed letter listing all the issues, quoting the survey (could not give them the full report for whatever reason, surveyor issues), quoting the prices of repair and the names of the companies to make it sound super serious and super thought through (as it should have been), said we are still very keen but will not move unless a realistic reduction is negotiated, stressed that any other buyer will face the same issues and will do exactly the same research as us and whilst we love their house we cannot guarantee that we will be around to support our bid weeks/months down the line. The vendor huffed and puffed and we got a good reduction, nothing to jump about but enough to put most things right. I would say do not leave it down the estate agent to pass the message, write a proper letter, so that all the points are made and you are in full control at your end.

I am afraid the market is not on the side of your seller as it was in 2003. The only thing, if they cannot afford to sell below a certain price because of negative equity you may get stuck, but I still would NOT pay over the odds for a property in the current climate. Good luck!

Thanks both. Think we might have a bit of a job to convince the seller to reduce, but we're going to try! Great tip to write it down, I often think the estate agent doesn't tell the full story to whoever they talk to (ie. Us or the vendor). Letter much better. I have tried to be as honest as possible but it's hard to do that and keep cards close to chest! Estate agent asked me what the valuation bit of the survey said this afternoon - I didn't tell her (because it's been valued at the price we're paying) but thought it was a bit unprofessional for her to ask! Surely if I'd said it was at the price we're paying, I'd have no way of negotiating any reduction?!

Haha, cheeky e/a. It is not unprofessional of her to ask, but it does not mean you have to tell. Don't forget, whilst your business is essential for them to make their commission, they are working for the seller and are interested to sell higher rather than lower.

Btw, ask if the e/a can pass the letter. Ours first refused saying they do not encourage direct communication, but we played it soft and they gave in without much fight.

Last tip if i may - be realistic. They will not reduce to accommodate the cost of the new roof, but in our case we got about 65-70% of the roof and damp course. Maybe you will get more, but this is our experience. I would definitely not allow them to do any repairs themselves as I will be expecting them to cut corners.

Thanks bemybabe. 50% would do us!

I'm on the other side of this as my purchasers are currently negotiating the previously agreed price on the basis of the survey and subsequent quotes they've received. I've asked for a copy of the entire survey (not just what the purchaser considers to be relevant), confirmation that the mortgage company have not said that they will withhold funds until the work has been done and for copies of the quotes they've received together with a breakdown of what that quote is for. I am also arranging to get quotes myself for the more substantial work partly because I'd always want to get more than one quote but also because I want to check that the purchaser isn't pulling a fast one in the extent of the work they've said needs doing.

The purchasers sent an email to the estate agent setting out their position asking for him to forward it to me and I will respond in the same way.

Thanks murtette. Thing is, I'm not keen on sending the whole survey to them (estate agent or vendor). I paid £550 for it! But I do understand that you want to be sure works are definitley required. It's a bit tricky with ours - we agreed a price with the proviso that the roof would be fixed, so even if the bank don't need it fixed before they lend the money (they don't, and it's valued at the price we agreed too), it doesn't make a difference. The thing is, the vendors obviously thinking we're being dishonest, I'm trying to be fair and give her the benefit of the doubt too, but she's obviously trying to get away without dropping the price!

Update (if anyone is interested? I'm just excited!). Price dropped. Thanks again for the tips, the long detailed email did the job!

Murtette, I was told by the surveyor that the survey was prepared for my and my dh only and he did not authorize to release it to the 3rd party. I did not actually call him for this, it was a discussion regarding the state of the roof and I just happened to mention it. In our T&C it actually says we were not authorized to show the full copy to any other party. Just so that you know that it may be the case for your buyers!

mushroom well done you!