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?

It sounds to me as though you're already getting a really good deal, and that the poor marketing worked in your favour in putting off others who might otherwise have been interested. It's not unexpected that the house needs work, so none of these things is wildly surprising in that context. And, given how rapidly the market has been rising at the moment, really it sounds as though you're getting it for a very fair price indeed. If I were the vendor I'd consider your to be a CF if you tried to knock it down further, unless your mortgage validation came back lower than the agreed price (which I suspect is unlikely).

This is not a list that would tell me that you are entitled to ask for any more money off.

You yourself have stated that you wouldn't be able to afford this location / size normally and are being massively outbid on ones you can.

The reduction you already have will more than cover the costs of whats required. Yes there are some things that need doing, but im with @Pugdoglife here, even a first time buyer would have noticed most of these 'issues'

Insulation is like £15-£20 a roll
Any older house will need re-wiring. Hell, any house over 25 years old will probably need a full re-wire.
If there is one working bathroom, turn off the water supply to the leaking bathroom and work on it over time - its a project house anyway and lets face it a new basic bathroom suite can be picked up for £500 and i successfully plumed one in at 23 in a house i purchased with no working bathroom (shock horror) with no prior plumbing knowledge.

I purchased a repo that 'needed a full re-wire', needed a new boiler, had asbestos garage roofing, needed a new garage door, had no loft insulation, had a non working bathroom and the guttering was hanging off creating a wonderful waterfall every time it rained. It was only a three bed semi but didn't cost anywhere near the discount you already have..... the electrician i had told me the wiring was just old and perfectly fine. I also did everything myself apart from the asbestos garage roof.

The sellers are in no rush if the house has been on the market for that long so think very carefully because i know what id do if you came back with asking for less....

@Persipan the mortgage company agreed the valuation was good.

What is the price you are purchasing it for? 210k instead of 290k is already a good deal.

1.2million instead of 1.28 million is not.

If 60-80k off was agreed for all visible works, then it stands to reason that additional discount would be reasonable for insvisible work.

If you'd be upset if they pulled out and happy to pay the original price you offered then I wouldn't go lower. They could easily walk away

@BernadetteRostankowskiWolowitz £590 instead of £650-675

@cloudchaos that is exactly how I feel. I would be a bit stuck if they pulled out and we have already spent 2k on costs so far.

You risk them pulling out and re-marketing the property if you do this. I would accept that you already have a good deal and proceed on the original offer basis if you really want this house.

@Charmtaste

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.

If you’re not surprised or fainted at all by the survey, and you just fancy the chance to get a bigger discount, then the survey is sort of irrelevant.

As others have said, most of that list is visible to the naked eye or to be expected anyway (rewire, for instance). Asbestos I’d maybe want a discount on, as it needs specialist removal.

Really no one can say how the buyers will react, so you need to decide how much you want the house vs how much you want more money off.

Our buyers tried this with us, we refused, they still purchased at the agreed price. You could pose the question, but I think they will be likely to refuse, the market it hot, they could probably re market at a higher price to be honest. Depends how much you want the house. Also something to consider is the rise in the cost and short supply of building materials OP.

There’s no harm in asking IMO-they can say no or they can accept🤷‍♀️

@NoSquirrels we have had a separate asbestos survey and the cost of removal is £600. There is not a huge amount to remove.

With that reduction I would just go for it, you won't spend that bringing it up to standards

We reduced our offer after a survey where the surveyor said the price was too high. We went 50/50 on the difference with the vendor. If the survey says the valuation is fine, I'd not mess around.

Given surveyor has agreed valuation despite work I would go ahead at that price and get builder to quote for full refurbishment. I assume you’re happy with organising a project so should carry on and do so.

Seems you’ve bought it for its value in its current condition. Are you sure the survey said exactly what you’re saying it said?

If the survey has revealed extra issues you couldn't reasonably have foreseen, which will cost you extra money to put right, then yes I think it's reasonable to reduce your offer. We did the same when I'm a similar situation and the vendor accepted.

I wouldn't reduce offer, too much hassle and risk of them just remarketing it just for what, a potential 5 to 10 k off. You'll make that back tenfold in the end once it's all done. It sounds like there isn't really anything unreasonable that needs doing, considering it is already discounted.

OP, I get the impression that this is a large property? If so, be prepared for the renovation costs to be at least double what you estimate now. I speak from experience. Just be prepared.

@MotherWilliam it is a five bed semi. I have no idea what renovations will cost. I have currently got a surveyor pricing it all up for me.

Nothing on that list would be a surprise to you for a ‘fixer upper’, none of these are troubling issues, and as PP have said this list comes to nowhere near £80k so, as you’ve acknowledged it’s already reflected in the price, which is a very good deal. So, can you squeeze the vendor for a bit more just because, is the question you’re asking? Well of course you can try. But if it’s a price that is fair on both sides is it worth risking losing a purchase, or pissing off the vendor about? Don’t you want them to be accommodating during the process?
Honestly this is the sort of thing that makes selling your home such a stressful upsetting process, when people aren’t interested in a fair price that reflects the value of the home, just to screw someone else to the wall to get the lowest price possible.

The only thing that jumps out at me from that list as something I might try to haggle on is the conservatory being pulled down. Is that because it's unsafe? The rest of the issues are to be expected when you're buying a project. In fact, having done a refurb with structural changes, I'd say you've got off lightly and bagged yourself a bargain.

@Loudestcat14 the conservatory is “at the end of it’s lifespan, has a broken pane (1 piece of glass in a double glazed section, so there is still a pane). And should be removed as soon as possible”

@NCwhatsmynameagain before selling our house it would not have occurred to me to haggle after the survey but this is exactly what our buyer did to us.

You seem to have got yourself a very good deal here, and with the surveyor agreeing the valuation I can’t see why you’d ask for a further reduction. If I were the seller in this situation, I’d be very unimpressed with you and would consider pulling out and re-marketing.