Survey came back with major issues, buyer pulling out

[pumpkinspiceforbreakfast]

Accepted an offer on our house of 495. Buyer had a survey done and it's come back with results that have left me a bit in shock. Firstly it says the external wall insulation was poorly installed and doesn't meet "standards" (whatever that means, I only have the buyer's interpretation, not the surveyor's report) and needs more passive ventilation because it's causing issues with damp.
Secondly, we have an issue with condensation in the loft in winter, and that has come up on suvery (as I knew it probably would). We've had lots of airbricks fitted but when it's really cold outside, there is condensation on the felt. There are no leaks in the roof. There's also apparently "a problem with the way the bay window was built" (house was built in 1936, we bought it 10 years ago and nothing related to the window came up when we had our survey done).

based on all this the surveyor has valued the house at 425, 70k below asking price, and buyer has (understandably, I suppose) pulled out. i'm honestly stunned and can't see how this could be accurate, especially as the external wall insulation was done by a prominent company that's still in business with hundreds of 5-star reviews, neighbours had exactly the same thing done at the same time and their house has since been bought/sold without any issues. i can't see how even with a whole new damp course, new vents and new windows we're getting to 70k of work?! and we've never had even a hint of damp in the house (i've lived in houses with damp issues and have always felt lucky that i didn't need to deal with it here). is it usual for surveyors to overestimate costs and problems, or are we screwed??!

You would think not, unless there was a major event between now and then that forced up borrowing rates or something, if the OP is broadly in line with the sold prices in that area there shouldn"t be further devaluation (next door recently sold for asking price) but if demand is down like many areas lenders might decide to down-value further if they don"t think those values are achievable in future, as far as I know there have not been any lender valuations so far on this sale?

Drop the price, sure. But not by 70k. The claimed problems do not amount to anything like that amount.

Of course if the buyers hands are tied due to needing a large mortgage and total approval from their lender then that is what it is. This is why a non twitchy, experienced cash buyer is what a seller should be looking for.

I had a flat that took nearly two years to sell, it had complications for sure but held out until the right buyer came along- I simply rejected the messers.
The eventual buyers swallowed the potential issues as I did when I bought the place and I’ve just seen they have sold at a large profit too.

I don"t think there are large profits waiting for people who bought in the last few years, your experience doesn"t sound like the housing market in many parts of the country, especially for flats.

https://www.dailymail.co.uk/property/article-15578683/Why-flats-FLATLINING-Sales-collapsing-Prices-plummeting-three-factors-killing-market-stone-dead-Experts-untold-story-whats-really-going-destroy-market.html

Not that kind of flat.

And I’m aware that profits might not be rising as they were. But my point was more; do not let one twitchy over leveraged buyer put you off what you can get for your house. Certainly not by 70k.

You mention condensation, especially in the loft, even though it has had ventilation added. Lofts do not create water, unless the roof is leaking, so water vapour is most likely leaking up from the house (it rises because it is lighter than air). This is commonly from a steamy bathroom, which you can address with a much more powerful extractor fan, run more often and for longer. If there are holes in the ceilings (typically for downlighters) they allow lots of leakage, so does an ill-fitting loft hatch. A job for a diyer or handyman, though a carpenter should do a better job.

By passive ventilation, they mean you don't open the windows enough. You can fix that at negligible cost, especially if you are lucky enough to have trickle vents. Drying clothes indoors is bound to add water. A tumble drier will cost you less than the buyers want to knock off.

Don't know what they mean about the External Wall Insulation. It is less common in UK than in other parts of Europe. The manufacturers usually provide installation instructions, you might he able to get a copy.

After doing what you can to get the damp down, you could commission a surveyor yourself, and ask for advice on defects they find.

Fair point.

My daughters going through something similar to this, the agents have been beyond shit, tried to force them to pay for a structural engineer. And to be honest it’s going to cost them the sale.

The OP indicates the survey had suggested £425,000 as a value a reduction of £70,000, i don’t know if that then counts as a lender valuation.

The only experience i have is as a buyer and our survey downvalued the house due to damp and a couple of other things and the lender placed a £35,000 retention until work was completed. We couldn’t proceed as we couldn’t pay the extra £35,000 and the seller didn’t want to do the various works with the lenders certified tradesmen and have the re-inspection. So i’m not entirely sure what the seller did with that house.

@Kookykoala if you know how to use a map you can see it all clearly on housemetric.co.uk.

It’s a really good site for examining sold prices.

I sold my flat that was damp. It was a 200 year old building, but had issues. I got a surveyor to assess before input it in the market so I was prepared. I priced accordingly.

I did get a cash buyer at asking price who was happy to use my survey. I got lucky.

A suggestion about the bay window: they were often built without the depth of foundations that the main house has and over time start to move away from the house which means that rain can seep into the gap. This is not unusual in older houses, and though it costs money to fix (by “tying” - costs £2-3k), it’s nothing to be alarmed about. There are builders who specialise in this work as it’s so common.

The passive ventilation was specifically mentioned in the survey in relation to the EWI. I’ve checked and there are air bricks below the EWI, which starts at around the level of the damp course. We already have a tumble drier and a super powerful extractor in the bathroom that vents through the external wall. Humidity in the house is never above 55 so I think the loft stuff may be due to the hatch not being air tight. Although I went up there over the weekend when it had been relatively fine weather for a day or two and there was no moisture at all, even though it was cold outside. The fact it only happens when it rains would seem to suggest a leak but the moisture is condensation evenly across the membrane rather than water pouring through, or in patches. Anyway, roofer is coming tomorrow to take a proper look and examine the rafters. Estate agent thinks we should relist at the same price but im still on the fence…

"there are air bricks below the EWI, which starts at around the level of the damp course"

These will be to ventilate the subfloor void, which is fine but do not ventilate the living space.

You said you "have a dehumidifier for drying clothes" which led me to believe you were drying washing inside the house.

If you check the humidity in each room, with the doors and windows shut, you may find one that has a particular problem, such as a leak.

When does the bathroom extractor run?

Many sellers try re-marketing but it is getting harder to do that and get a sale without hearing the same thing again about the value.

ah yes originally bought the dehumidifier to try drying washing when gas prices went nuts but only actually used it for that purpose once or twice due to laziness! tumble dryer is so much easier.::

bathroom extractor turns on with light and runs for a while afterwards, but in the winter I usually have the dehumidifier on most of the time as I am, believe it or not, paranoid about damp!!

have had two roofers in, both have said no damage to roof, rafters all fine, one said dry ridge system needed, the other said soffit vents. What’s frustrating is that we had a woodworm treatment done a few years ago on rafters (as a precaution) and one of the roofers said that after a few years it can make a white residue seep out of the wood. He reckons the surveyor may have seen that and thought the timbers were rotten…

So you re-market the house and see what the next survey says if you get an offer? No point stressing or spending any money on this IMO.

They are items noted on the survey. They don't assume that your house would have been valued at 495k. That is what you have accepted for it. It could be valued as less because the surveyor thinks it should be valued lower. Irrespective of the issues as his starting point may have been lower than 495k. Does that make sense?

Basically it is worth what someone will pay for it, the asking price isn"t very relevant I think you mean?