Would you proceed with a ropey renovation project or change course?

[BobLobla]

We've been waiting for our house to sell so we can buy a slightly smaller house that is actually a HMO but that has fantastic views (let's call them 10/10 for context) and is 100K less than we've sold ours for, therefore we can afford big renovations. I've had my eye on this house for over a year and we're dealing with the seller direct now as she's taken it off the market and has agreed to sell. The offer has been accepted.

BUT... the survey came back the other day and it's pretty ropey. She hasn't maintained it well and it has 4 red flags and lots of ambers. To get these right we'd be forking out at least 15-20K more. I haven't told her about it yet. Our builder thinks he can do it but that there may well be other problems that are revealed as he works.

Our house is SSTC so we have to move. After this survey I went searching to see if there was anything else that compared (in terms of views and what we want in terms of lifestyle). Turns out there was. I did a drove-by the other day and loved it. Views are fab (8/10). I'm viewing on Monday. Only £30K less than our current house but not much to do for essential living. We'd improve it but it's not a huge reno project. The area it's in is highly sought-after. DH is on board.

I'm pretty sure the vendor of the other house will reduce the price when I tell her about the survey. But I think I might have the house ick now. The reality of big building work and uncovering other horrors has hit. The vendor will be very pissed off. And I don't even know if an offer will be accepted on the 'new' house. Do I try to get over the ick? Do I put an offer into the new house, fork out for another survey and wait for the report before pulling out of the other one? Or pull out on Monday?

Currently living through building work and I would say that if there's a house in budget that doesn't need building work, then go for it! If the viewing goes well then I'd pull out of the other house. Good luck!

I suspect the HMO is going to cost a lot more than your budget.
mid go for the other option on this occasion.

Go with your gut. Rent if you need to.

If you think the vendor would reduce their price due to the state of the property then I think they must have had some idea that it was overpriced in the first place. I'd give it a swerve.

I would double the 15 to 20k estimate to give room for the unforseen issues and present that as your revised offer on Monday. You dont need to worry about causing offence to a family home, or a home owner, as this is effectively a business premises, run by a business person. They won't take it personally. Expect them to try and negotiate you up though.
Its very unlikely that they will stamp their feet and refuse to enter into a compromise. Your fears of further issues are absolutely valid.

I'd offer on the second place and get a survey in asap. Or take a reliable builder to view with you, then offer. If accepted, pull out of place one.

Building is so expensive and such a hassle. So I would seriously explore the second house.

Does the HMO have planning permission to change its use back to residential? That can take time and may not even succeed, which will affect mortgage and ability to do what you plan.

Go and see second property. And maybe look at rentals too just in case.

Listen to your gut, you have the ick and costs are already mounting. Go for the second house

Yes, would pull out. £100k easily eaten up.

Brilliant replies. Thanks all. I’m going to the second house tomorrow and have every intention to put an offer in . I’ll then withdraw from the first house with no talk of re-negotiating. I think I’m right in thinking I’m under no obligation to share the survey with the vendor but I could give her headline details - is that right?