survey has come back not so good: what can we do now?

[vannah]

hi,
the property we are trying to purchase has finally been surveyed, and I have just spent a few hours pouring over the report (woolwich, homebuyers)
There are things we hadnt really anticipated, like complete re-wiring, complete change of heating system, the garage is not useable - about to collapse apparently. Some ceilings will need replacing soon as are close to their 'end life' and various things like ceiling coverings and floor tiles contain asbestos and need to be changed immediately. The list of things which need to be done is endless, although nothing major like damp/rot/subsidance. It seems that the man who has been living there has done very little to maintain the house other than the cosmetic touch up which fooled us into thinking it wasnt a house which was in bad condition.
The report does state the the condition is average.

It states we should send in an electrician and reputable plumber for costs of rewiring/changing heating, and a builder in to say how much repairs to the garage would cost before we legally commit to purchase.

If we do this, can we ask for a reduction in the price as we are not sure that we can afford it with all that needs doing. We offered 10k more than offers he was refusing..but now feel its probably worth less?

any advice
thankyou

You need to talk to him really.

He may not be aware of what a bad state his house is in - your report might prove to him that his house is not worth as much as he thought.

Or he may be fully aware of what work needs doing and feel that the house is worth what you offered.

It might be worth more to him than to you.

Of course you can. And he can say no - he won't be obliged to negotiate but he'd be bloody stupid not to even meet you halfway. Thing is, are you really sure you want to buy this house? All the work that needs doing will mean upheaval for you while the work's being done. If you don't LOVE it, I'd think seriously about whether you are paying over the odds for a load of hassle.

thankyou both. We are sure about the house, but quite overwhelmed about the number of things that need doing..
is it too late at this stage to view it again, say with our electrician+/ plumber?

we only viewed it once and put an offer in straight away... that was about 4 and half weeks ago..

1. Go for another viewing and decide if you can really commit to it.
2. Sounds like you need a full survey, not a Homebuyers. In a full survey the surveyor will give estimates for all works that need doing and thus a figure for re-negotiation.
3. Be warned - survey reports always sound negative in my opinion.

......would question why you only viewed once before making offer......?

verylapsedrunner thankyou good advice. Didnt know that about the full survey, had I known would have had that instead, worth paying extra for it. One viewing then offer because we had that 'feeling' when we walked in, plus it made sense on a practical level - situated right next door to a very good primary and secondary school- something we have struggled to find.

If it fits the bill location wise and you have a "feeling" then definitely get some repair quotes and renegotiate the price. We have just (fingers crossed) sold our house which needs many of the things you have listed doing to it. In my (limited experience) meeting half way over the estimated repair price is pretty normal.

thanks vlr...

is there any retention? ie are your lenders keeping money back until certain works are done? this often gives a sign as to how 'serious' the works listed as being necessary are - although if you only have a low mortgage relative to the value of the property, its possible no retention would be made.

I think you have to keep an open mind - surveys will generally say a lot of work is to be required when in fact the real essential work can often be a lot less.....for example I bought my first house 12 years ago. It had a ground floor flat roof extension. Survey said something to the effect of the roof was nearing the end of it's life and would require replacement in 2-3 years. I never replaced it, and moved 5 years later. The current owners still haven't replaced it, and it's still watertight.

Having said that I wouldn't take a chance with electrics or heating - get an electrician/pumber to give you a quote. once you know what the works will cost, negotiate - either vendor drops price to reflect this, alternatively ask him to get the works done himself before exchange - but good luck anyway!