How much to renegotiate?

[dreamersdown]

We are buying an older (Edwardian) property in London, for the best part of a million quid (955k).

We know that it needs a lot of refurb (owners have lived there 50 years) and went in a tiny bit (5k) over asking (competitive bids, but we won out based on our situation/ that we are local). We have small kids and wanted a longer term property that we would be able to move into immediately.

We’ve just had the Level 3 Survey report back and it’s pretty tasty. There’s elements on there we hadn’t spotted on viewings (windows not closing, gaps around them etc. No insulation in loft, elements with the electrics). The surveyor has recommended £100k of immediate work.

Having spoken to their estate agent, the sellers expected issues would come up on the survey. We have indicated that we will be asking for a reduction.

However - we know the lovely sellers from church, the house has sailed through its mortgage valuation, we knew it was a refurb job and we don’t want to lose this house.

What should we negotiate? We’re thinking 10k off?

The issues you mention are minor surely? The electrics and windows are old. Insulation must be lacking in properties this age.

You can negotiate a reduction based on how much other interests there are. It's a falling market so likely they might want to keep you?

If it's been valued at the price you've agreed, surely the sellers are well within their rights to say no to any reduction?

I'd be wary of seeking any reduction at all if the house is valued in its current state at what you're paying, you'll cone across as money grabbing and the sellers could go with alternative buyers if they know there's lots of interest.

But you knew it needed a big refurb and presumably offered accordingly? It doesn’t sound like the survey has thrown up anything you couldn’t have anticipated. House sold as seen - based on what you’ve said if I was the seller I wouldn’t entertain a reduction.

What's the house valued at? Those issues wouldn't be a surprise in an unmodernised house of that age.

The surveyor has recommended £100k of immediate work.

really? Like what? And you want to ask for £10k reduction? 😐

Element with electrics
windows in disrepair

sounds pretty urgent and substantial

windows not closing

will be uninsurable until this is rectified. Pronto.

10k on 1million sounds a little petty to me? Seeing as you went 5k over ask to secure property, it seems a bit sour to ask for 10k? That's just me tho!
Rough rule of thumb I use, any red items on survey and any immediate safety issues especially with kids, either ask for a reduction to cover that cost of have them complete work before completion. I'd be prepared to show survey to explain.
10k seems a bit random tho- and thus cheeky.

If you know it was a refurb job, it shouldn't be a surprise that some elements of the house are old and need replacing?

A surveyor's definition of 'immediate' doesn't mean unsafe or impossible to live with, it means 'first priority to fix'.

Surveys always sound doom and gloom. I don't see the point of a 10k reduction if you think it takes 100k to bring up to standard.

That's pennies, relatively, and it might just piss your vendors off.

We bought a house recently with windows not closing. Insured no problem. Absolute pain in the ass tho- I definitely ask them to rectify this before completing.

In London, no insurer on the planet would I sure a property with accessible windows that do not close

Given that you say you would be buying it as a refurb and it's valued as worth what you're paying for it I'm not sure why you're asking for a discount.

Super helpful, thanks all.

We’re not going to ask for the £10k discount, but we are going to ask for the windows to be made secure/ funding to make the windows secure ahead of completion.

I think that's a good compromise

And surely the electrics?

I wouldn’t want to move in, let alone with my children, to a home with an electrical issue

I agree, get them to rectify the electrical issues.

100k of immediate work is a lot.

Was this just windows and electric ?

For the electrics for me it would be dependent on the nature of the warnings. If they are saying it is unsafe and needs to be rectified immediately then that doesn't sound like a house that "you would be able to move into immediately".

Loft insulation is most likely trivial. Unless there is a load of asbestos up there.

''@Igmum · Today 12:18
Given that you say you would be buying it as a refurb and it's valued as worth what you're paying for it I'm not sure why you're asking for a discount.''

Because someone is asking almost a million for house that doesn't even have windows that close properly?

The UK housing market really is ridiculous.

OP, if the owner did not take into account the fact that their house needs a massive amount of work when they priced it and just tried to pass it as only needing cosmetic work, then you should renegotiate.

If the house was priced to reflect the fact that it needed extensive work including electrics/plumbing/insulation and potentially structural (so went on the market at a much lower price than other houses in the area) and the owner/agents were upfront about it then it might be harder to negotiate.

If you don't ask you don't get. Quote specifics from the survey and ask for a % of the £100k. I'd ask for £20-25k personally because they can always say no!

Update OP?

We stood back and took a look at the big picture. We want the house and are going to have to do a lot of work to it - we also know the sellers locally and don’t want to poison goodwill over relatively small amounts in the greater scheme of things.

with the helpful advice here, we shared the survey with their estate agent and asked them to make sure that the property was secure ahead of completion, which they’ve agreed to do. But didn’t ask for discount, Thanks all!

Negotiating on the price for a property is not “poison”ing goodwill!

all the best though!