To reduce offer after survey

[Charmtaste]

We have had an offer accepted on a house that was marketed as needing renovation. The survey has come back and it needs:

1. Complete rewire
2. New gutters, soffits and flashings
3. The conservatory pulling down
4. One bathroom removed and redone (leaking into walls).
5. Asbestos tile removal
6. Garage doors replaced
7. Loft insulation
8. All border fences replaced
9. Boundary garden wall removed and replaced (falling into next door)

We knew we were taking on a project and would have to do all internal flooring and walls. We knew there was damp getting in. We knew the kitchen had to be ripped out and replaced. We are getting the house for approx £60k -£80k under market value compared to similar houses that are in good Nick. The house has been on the market for a year. Would it be unreasonable to ask for a further reduction based on the survey? How would you react as the vendors?

Yes, you are already getting it for 60-80k under the market value on a house advertised as for refurbishment.

Personally, I wouldn’t lower the offer, I would walk away from this one.

I don’t think it would go down well with the vendors. Complete renovation usually means rewire, re plumb, new heating, a few structural things or a new roof. None of the items on your survey are a surprise for a renovation job
If it’s listed as requires modernisation that usually means internal decor and flooring, kitchen and bathrooms, maybe a new boiler

Sorry I just checked the ad and it was marketed as needing updating not renovating.

Same thing.

I agree, the survey reflects what you already knew before you made the offer.

No harm in trying if you don't ask, the vendor could just want it sold regardless depending on their circumstances.

From your viewing before making an offer you didn't spot any of the work that needed doing? Points 2,3,4,6,7,8,9 should been fairly obvious to even the most novice property buyer.

If I was the vendor, I'd refuse to lower the price any more because it's already being marketed at £60 - 80K under market value to take those works into account. That's what renovation is.

There would have to be something else major on top of all of that before I'd drop the price any more.

You’ve got 60k knocked off already, don’t be cheeky enough to ask for more.

No because the survey isn't that bad.

The reduction is to cover the cost of renovation, you’ll spend that 80 putting it right however you’ll be able to do it to your taste and not Someone else’s, with that amount of work it’s pretty much a blank canvas to do with what you want, you need to weigh up if the reduction will cover the renovation costs

Needing updating definitely includes a rewire!

Surely,saying it "needs updating" means new kitchen, bathroom, carpets & paintwork, but not urgently. Probably a new boiler, possibly new windows. If it needs significant work in order to be safely liveable, it's a renovation project. In the current market, any house that's been on the market for a year doesn't seem like a fantastic prospect TBH. More like a money pit.

Did you pay for the valuation survey too? If not, or it's valued similar to what you offered, then there seems to be no reason to reduce the price further.

We reduced our price after survey (ours was listed as if it was in wonderful condition when it's definitely a renovation project) as the survey was shocking. I still think we paid too much as the house is in worse condition than we expected.

I'd say from viewing you couldn't have known about 5 or 7, possibly not 1 or 2. So you could price those up and reduce your offer. Always the risk they'll just say no and remarket but they might not.

I think the reduction you’ve got compared to market value in the area is because of this work, it’s not hidden and it must’ve been obvious that most of this would need doing.

You can ask, but if I was the vendor I’d say no, the reduction has already been made, if you don’t want to spend on the renovations go for a house that doesn’t need so much doing.

@LegoCaltrops it was marketed very poorly with no internal pictures. The listing didn’t even mention the garage. I had seen it on RM but ignored it for months as I assumed it had sitting tenants. Actually the people who live there are just exceptionally private. They dropped it by 50k initially over the year and then we got it for 10k under asking. It is in a superb location where houses of that size in our budget don’t exist.

it all very much depends on how much the owner bought it for, and how much he's selling it to you for.

@Charmtaste

We have had an offer accepted on a house that was marketed as needing renovation. The survey has come back and it needs:

1. Complete rewire
2. New gutters, soffits and flashings
3. The conservatory pulling down
4. One bathroom removed and redone (leaking into walls).
5. Asbestos tile removal
6. Garage doors replaced
7. Loft insulation
8. All border fences replaced
9. Boundary garden wall removed and replaced (falling into next door)

We knew we were taking on a project and would have to do all internal flooring and walls. We knew there was damp getting in. We knew the kitchen had to be ripped out and replaced. We are getting the house for approx £60k -£80k under market value compared to similar houses that are in good Nick. The house has been on the market for a year. Would it be unreasonable to ask for a further reduction based on the survey? How would you react as the vendors?

None of this would come close to 80k in costs, so I'm not really sure what the issue is. Its standard need to repair in a refurb/update house tbh and could be so much worse!

What did you expect the survey to say? Needs new wallpaper?

I'd have also have thought, much of this should have been visible to the naked eye tbh.

Was it the first house you looked at?

I think you should reduce your offer. Surely that is more than £60k of work.

@BusyLizzie61 no not the first. We have been in rental since selling our house in March. We have offered and been outbid on 5 properties, some by 70k.

TBH we thought the survey would be far worse. We thought it would have structural problems. I just wondered if we could get a further reduction and what people thought the sellers response might be.

Outbid on one by 70k not some. The others we were outbid by less but still too much.

If you think you’ve already got a good deal and you’re happy to pay it then stick; if you’ve got extra items coming up after the survey that weren’t apparent (or obvious) before that you haven’t budgeted for then why not ask for a further discount. If you feel the house is a money pit and buying in the area doesn’t make up for that, walk away.

Sounds like a good value for this red hot location - it's not really just 60-80K under similar houses but renovated, it's that plus the 70K people over-offer on the other houses.

It's worth a shot OP. Shy bairns get nowt.