Should I pull out of house sale?

mamahuhu

So, the situation is I've put in an offer on a house that needs 'some internal upgrading'. I was aware of an issue (serious) with damp and got a quote when I did my second viewing and factored this in to the costings and the same with a total rewire...However, on having a survey done, it now turns out that there are a number of other problems: three chimney stacks will need replacing, as will the roof; the GCH has been pointed out as bit of a disaster too and will need to be done from scratch; and several of the non load-bearing walls (lath and plaster?) will need to be rebuilt as it will apparently not be possible to sink cables into them without them crumbling!!
Factoring all of this in will take me (way) beyond my original budget and is, in all likelihood, going to mean that the total money (purchase price plus renovations) I have to spend will will exceed the value of the house once renovated.
I doubt the vendor will take all of this into account and drop her price as she rejected several lower offers out of hand.
Should I just pull out? The offer was only accepted on Wednesday (two weeks after I made the offer!) and I have not instructed a solicitor yet as I wanted to wait for the survey. Also, the house has been on the market for over a year and I'm beginning to think that perhaps other potential buyers have realised all of this as well...
I am really in a quandary over this as I don't want to mess the agents around and don't want to get a bad name.
Any (constructive!!) advice gratefully accepted.

Phils_debt

Sod what the agents and anyone else thinks for that matter by the sounds of it you have realised ,i personally would back out of it sounds like a hell of a lot of work

Wordsmith

If it was me I would pull out. If the estimates take you well over budget the reality will probably take you way way way over budget. You haven't gone too far down the line, and you have, if you felt you needed one, the excuse of the survey: "I love the house but the survey has thrown up several issues that I hadn't been aware of and therefore I can't afford to go ahead. Sorry."

laurel7172

These things always cost more than you estimate. By all means make a lower offer with the survey as backup, but be prepared to walk away and buy a house that isn't falling down.

custardy

if you are willing to do the work, then throw in an offer low enough to cover the work with a good margin for error
worst they can do is say no

Thrugelmir

Walk away. Any other potential purchasers will face the same issues.

If the vendor is serious about selling. The property price will fall in time to reflect its true value.

Just ask the agent to keep you informed of developments.

mamahuhu

Thank you all for your advice!
I do love the house and think I will make a last-ditch attempt to negotiate with the vendor, but I really don't hold out much hope.
If I do pull out, is this going to affect how EAs treat me in future? I am serious about buying and have finances all in order and ready to go...
Am fearing several sleepless nights about this!

Yorkie1

I can't see why it would affect you in future, as the extra work could not have been anticipated when you put the offer in.

EAs will be used to price renegotiations post-survey; some result in the sale going through, others result in the sale falling through. The fact that you were committed enough to the house to get a survey done should be sufficient.

And anyway, EAs want to get their commission. The owners / sellers of other houses aren't going to take kindly to you being refused permission to view just because one of the EA's other properties was a money-pit.

mamahuhu

Thanks, Yorkie.
If the truth be told, I'm gutted to even be considering walking away from this place. Still if ever there was a time to take a pragmatic approach, I guess this is it!

MrandMrsB

Don't forget that it's a buyers market right now. Later the vendors might be so desperate that they will accept a lower offer. Make sure they know that you love the house, but the sums don't add up.

mamahuhu

That's part of the reason that I feel so bad about (maybe) backing out. As I mentioned in my original post, I had to wait two weeks for the vendor to respond to my offer and during that time I called the EA a few times for news (such was my enthusiasm) and generally made it known how much I wanted it etc etc and now...It'll probably look like I was just mucking about! :-S