Revised offer after survey

mich309

Recently had an offer accepted, knew it was a little over due to other buyers interest, but now house buyers survey back saying it's £10k over value and needs about £5k immediate work doing to it. What should I do? How do I play a revised offer?

Thanks

G_M

Ask for £15K off?

mich309

Is there a negotiation technique that works particularly well here? Should we just say £15k off, or try to meet in the middle or where do we go.........

Don't want to overpay just because I don't negotiate properly!

Littlemadam83

We are nearly at the stage you are at. Our take on this (and I may not be correct) is that is the mortgage company going to lend you anymore than what the survey says it's worth? If not then you need to go to them, and tell them that you will not be able to proceed unless it is "x" price. My EA said 90% of vendors then drop to this without a hitch. At the end of the day if you need a mortgage and they wont budge it will have to go on the market again.

If you dont ask you dont get

mich309

Thank you. The mortgage valuation actually came out ok - unfortunately, it's the house buyers survey that didn't, so I can't hold them to the mortgage one.

You are right though - don't ask don't get. My other half isn't so convinced and thinks we are wrong to ask for a drop in price, I'm trying to be less "moral" about it (if that's the right word!!)

timmyt

a surveyor saying a house is overpriced.....hilarious...THERE IS NO SET PRICE FOR A HOUSE...there never has been and in this climate, price is what a person is willing to pay.

If your lender is saying it is overvalued and so will not lend you enough that is different, but a surveyor hasn't got a clue - and quite frankly his job is not to say it's value - and so the Seller will just laugh at you if you claim it is overvalued.

AS for the repairs, get quotes, but if the proeprty showed these defects as part of the sale value, then again you won't get anywhere.

Be careful as not many proeprties on the market at the moment, so equally a sellers and buyers market.

Good luck OP.

mich309

Thanks Timmyt. I thought that the surveyor was supposed to give you a value. The work that needs doing was not visible as it's the garage and utility roofs, cracked rendering that had been covered up and asbestos blocks in the loft, so none of them could be seen.

new_home_owner_3

The house valuation from the mortgage company is to see if you miss a payment the bank could reposess and get their money back, and they obvioulsy think its worth it.

You say the survey has said it needs 5000 pounds worth of work, maybe if the work had been done before the house would have been on the market for more.

I think by asking for 15000 pound off after the mortgage valuation as come back ok, you are going to get nowhere, especially now banks do not give a full valuation very often to protect their money.

We bought a house last year the mortgage valuation came back ok but work that needs doing that come up on the homebuyers survey was about 12000 pound, but that doesnt mean it should come of the mortgage valuation.

Bottom line you have offered on a house which the mortgage people value it at the price you have offered and if you dont think they look at things for like asbestos and flat roofs you must be kidding yourself.

whats happened then you have had the survey come back that says it needs so much work being done and now you want it took of the valuation from the mortgage company.

Not only that you want a extra 5000 pound on top, i think you taking the pee, if you came back to me and i was selling i would tell you to do one.

Its like buying a white car with basic wheels and a crap stereo system agreeing a price at the going rate, and then when you come to buy it saying well i wanted a black car with alloys and a top stereo, but thats going to cost 3000 pound so i want it off the total price.

Good luck with your idea but if i was the sellers i would tell you no.

sonastin

Let it all be implied in what you say...

The mortgage company have done their valuation
The report says it is worth xxx
The survey has highlighted work to be done
I need money left at completion to pay for the works that need doing

That justifies asking for a reduction without ever saying you can't afford the agreed price - it sort of leaves the suggestion that your mortgage offer will be reduced & you can either make up the shortfall or do the work that needs doing but you won't be able to afford both.

To show what a reasonable chap you are, you could offer to split the difference with the vendor - as a negotiating tool you get more chance of getting £5k off than if you went in £10k or nothing and they choose nothing.

Be ready if they call your bluff and decide whether or not you want it enough to still pay the accepted price.

FWIW, my interpretation is that the £10k overvalue takes into account the fact that there is £5k of work needing doing. So £15k is being cheeky - do the £5k of work and it will be £5k over value at that point.

mich309

Thanks, my view was that £15k was too much to ask off too. I think that we offered a price judging that no immediate reparation work needed doing, and we can't afford full price plus £5k out on day 1.

I think that I will look to do as you have said. Thanks for all the advice.

new_home_owner_3

I think meeting halfway is reasonable, but if a few offers went in on the house and they only picked you because your offer was the highest, they may accept another offer, but if you dont ask you wont know whether you will get it or not, and theres no arm in asking.

I think if you asked for 15000 pounds of for 10,000 pounds worth of work they would tell you to do one, another thing is with most homebuyers survery theyre will always be some kind of work that will be needed to a house, well 9 times out of 10.