ADVICE: Buyers Hesitant After Survey – Already Priced Low and Marketed as Investment, Full Refurbishment Required

[Eggybreadwithnuts]

Looking for advice from people who have been through this.

Buyers pulling out after Level 2 survey – priced low to reflect condition etc.

This is the family home my dad lived in for many years. He sadly passed away a year ago, which is why we’re now selling. The house was built circa 1960 (so around 55 years old) and is being marketed as an investment property, in need of full refurbishment.

For info:
Valued at £300,000-315,000 - we put on for that price on advice of estate agents but then due to amount of work,and for a quick sale and we put on market for £285,000 accepted offer of £278,500.

Agents have been upfront with potential buyers that an elderly person lived there and that the property requires updating throughout. We accepted a lower offer with this in mind — the price reflects the condition and the need for improvement.
The buyers have now had their Level 2 survey, which has flagged several expected areas needing attention. A couple of points are not quite accurate, and we have evidence to correct them.
They are now saying they won’t move forward due to concerns raised in the report, unless we agree to contribute towards the cost of a second survey.

Any advice appreciated!!!!

We really don’t want to lose the sale, but feel we’ve already priced the property fairly to reflect the work required. Has anyone been in a similar position?
Would you contribute to a second survey, or do you have advice on how best to proceed?

Thanks in advance.

Given the current cost of labour I understand why buyers are hesitant. Even when you know the property needs TLC, sometimes you don’t really understand how much work needs to be done and how much it will cost you.
You can obviously say no, but you also need to understand if the price really reflects the condition of the house. Because next buyer’s survey will probably appoint similar things.
The discount you mention probably reflects the property needs a new bathroom and kitchen. But if it’s more than that, then maybe it may not be worth it from the buyers point of view, especially now that is a sellers market.

Imagine you are the buyer. Take your hypothetical £280k and go house shopping in your locality. How does the property stand up against the competition? If you were the buyer, would it make sense to buy your dads place and spend on it, or would you find an alternative property that say needed less work?

good luck, it’s a buyers market right now, in many areas.

Yes agree.
House next door same situation parent passed. Am close to daughter who is selling.

She has accepted an offer of £315,000 was on for £325,000 needs the same overhall but she stuck to her guns as not in any rush to sell. They havent had a survey done yet.

It depends on the matters raised in the survey, I think. I'm (hopefully!) buying a similar sounding house and I expect to have to redo the kitchen, bathroom, decor, and stuff like updating electrics and heating system. I wouldn't expect more structural stuff though, like the roof, any significant plasterwork, structural movement.

I think it's reasonable to contribute toward a second survey if you don't have another buyer in the background. If you offer a 50% contribution you will also get the survey results to look at yourself. With that info you can be more confident in your assessment of the value of the property and be in a better informed position to either negotiate with this buyer or re market with full information on any issues that a buyer may have from the start.

I completely agree. You really don't have anything to lose doing this.

Why do they want a second survey? What do you want them to have a second survey?
If the second survey flags the same issues, will they go ahead & buy or will they ask for a contribution or will they walk away?
Whilst I’m not sure you have anything to lose other than 50% of the cost of the survey, nor am I sure that you have much to gain.

They requested it. First tine buyers, very young, and abit niaive but due to age lack of experience Im guessing. In fact due to age of house and condition they should really have had a level 3 done not level 2 which is a standard one.

Yes agree nothing to loose other than a few £££ but also nothing really to gain. We wouldnt be able to show or use 2nd survey as we are not the receipients of it

I think we would be better selling at auction.

Yeh that’s on the buyers, I would stick to your guns and let them pay for their own surveys and wait for new buyers, let them waste their own money.

They either want a project or they don’t.

If you compare your property with one that has already got new electrics, new heating system, modern doors, windows and insulation and up to date bathroom, kitchen and decor as well as damp proofing , plastering etc. how much is it on the market at ? It is likely to cost in the region of £80 thousand these days to bring a 1960,s house up to modern standards.

Well they've pulled out 🤦‍♀️ not got feedback yet just an email from solicitors saying wont be proceeding.

So back to square one.

Honestly it their loss not yours, frankly they sound like unknowledgeable idiots who might kick themselves down the line.

Pulling out over a level 2 (cosmetic) survey on a very low priced doer-up is crazy.

Now you can go back and probably get more from a more serious buyer although this month isn't the best to list so if you can I would suggest waiting a few weeks until past the 'dead zone' to start relisting/remarketing unless you have had other interest.

Yes exactly this. Ok the survey said things like windows are old need replacing, some areas of the walls are cracked near a front window, aesbrstos may be under the kitchen tiles (not unsafe but flagged up)..but this is all compliant with a 1960s house etc.

Also survey had stuff like... house built near a coal mining area....so soil could be soft clay...there isnt one near the property and nwarest is 20 miles away I's say also whole of the Midlands and Derbyshire is old past coalmining area ... does that mean every single house on this 1960s estate is going to sink.

Check for wood worm...although none was evident due to age of property joinery needs checking.

Any right minded perdon buying it to do up would of coyrse rip out the kitchen, skirting boards, replace windows!!!

So there was lots of covering backsides in the survey and to a niaive, first time buyer with no knowledge of what a 'doer upper' entales Im giessing they got freaked. EVERY survey on any property is going to flag up something.

Well back to marketing.

At least you now have all the details of what is likley to be flagged next time. If it was me I would be knocking back any further offers from first time buyers and trying to find a buyer that better understands the level of refurbishment needed and it's costs. That might mean accepting a lower offer but at least you have a better chance of a completion. Good luck 👍

Not all first time buyers are nightmare, we bought a doer up as our first with no issues.

Having owned a house doesn't necessarily mean someone is wiser or more realistic. In fact many confused and even angry posts come from people selling in chains that still somehow have no clue how anything works but because its not exactly the same as last time (even if they bought a turnkey say 20 years ago etc...) they blame everyone else.

@DrySherry yeah...but it was valued at £300,000-£325,000 in current state...same as 3 others on same street by different estate agents - all pretty much the same state as elderly parents homes etc.one sold 12 months ago for £323,000 and a family have gutted it and are having an extension.

After a few months marketing at that price we decided to drop right down to demonstration amount that needs doing us really want rid, we have no chain. So dropped to £285,000 but willing to go a little lower etc.

So makes we wonder whether we should remarket at valued price and then have some lee-way for negouations. All questions for estate agents I suppose who should be advising us to the next right move 🤷‍♀️

Im wondering whether to remarket from Sept gives us time to assess price, wording and hoping Estate Agents have a plan!!!