The Art of Negotiation After Survey

Mercurial

Hi Everyone,

I've been lurking a while and found this site to be really helpful and informative.

I'm buying a house with my boyfriend (we're first time buyers) and found a house which is perfect for us. It's around 100 years old but has been refurbished to a high standard. At the time of viewing we told our EA we wanted a house we could move into straight away without any major repairs being done. We were told that this would be a good choice.

We just received the building survey report and there is a problem with damp the report indicates that new flooring has been put into the living room to mask the problem. All chimneys are blocked up and there are no sign of any air bricks so air cirulation is restricted. There is also evidence of penetrative damp. There is no damp proof course.

There are also issues with the electrics which need sorting out and problems with the roof. We've got estimates of around 8K of work.

Reading previous posts I know the vendor is under no obligation to contribute to these costs but we would like some ideas on how to start the negotiation process.

We were going to say to the EA that we expect the buyer to pay for all costs and then negotiate down to both sides pay 50%.

We are in a strong position and this house has been on the market for two years now. Hopefully we can reach some sort of compromise.

TIA

MrRee_2

As FTB's I would walk away if I was you - why? Well simply because the seller attempted to deceive you by installing a new floor ....... what else has been hidden?

When trust is lost I leave .....

Whirlee

Sounds pretty reasonable. Although do they know the work will cost £8k or is that something you're planning on immediately disclosing.

You could consider saying that you've been given a list of work xyz and given that you were quite clear about not wanting to do any work on a property, and that the problem was deliberately masked by new flooring, you are looking to reduce the purchase price by (?) £10k.

After all it is the hassle of doing the work as well as the cost that you pay for when buying a renovated property.

Mercurial

MrRee that is what we initially thought they are being deceptive by covering up the problem. BUT it is a house that we like and could add value in the long term.

Whirlee no we haven't got to that stage yet, probably in the next week or so. The EA knows we want to renegotiate the price and I told her we will get back to her in a week. We don't want to look too eager.

Another property has come on the market on the same street in the last couple of days. I called the EA this morning to find out if a damp proof course is in place if so that might give us room to further negotiate (they will get back to me as it's only been on the market for a day). This house is on the market for the same price and has been done up to a high standard. But they have made the downstairs area open plan which doesn't seem to work in this kind of property.

I think we are in a strong position as well because of the configuration of rooms. It has one large double and three singles. So even though technically it's a 4 bed house it doesn't appeal to families. The EA said as much plus the stairs are very steep which would make it difficult for children and the elderly.

ognum

Mercurial wrote: »

MrRee that is what we initially thought they are being deceptive by covering up the problem. BUT it is a house that we like and could add value in the long term.

Whirlee no we haven't got to that stage yet, probably in the next week or so. The EA knows we want to renegotiate the price and I told her we will get back to her in a week. We don't want to look too eager.

Another property has come on the market on the same street in the last couple of days. I called the EA this morning to find out if a damp proof course is in place if so that might give us room to further negotiate (they will get back to me as it's only been on the market for a day). This house is on the market for the same price and has been done up to a high standard. But they have made the downstairs area open plan which doesn't seem to work in this kind of property.

I think we are in a strong position as well because of the configuration of rooms. It has one large double and three singles. So even though technically it's a 4 bed house it doesn't appeal to families. The EA said as much plus the stairs are very steep which would make it difficult for children and the elderly.

I can understand that this appeals to you know but have you thought that if it has limited appeal now it will be the same when you try to sell?

The survey on a flat I am selling has thrown up an issue that I did not know about but I would be happy to renegotiate the price if asked hust to move on!

kingstreet

The surveyor hasn't recommended an independent damp report?

Surveyors are GPs who identify a problem. You now need a consultant to tell you exactly what the problem is and what it will take to fix.

Find yourself an independent damp surveyor here;-

http://www.property-care.org/

and avoid contractors who have an interest in over-quoting for work because they'll make more money.

The report will tell you what you need to do and how much it will cost. You can then approach the vendor from a position of strength with all the facts at your disposal.

GDB2222

Mercurial wrote: »

I think we are in a strong position as well because of the configuration of rooms. It has one large double and three singles. So even though technically it's a 4 bed house it doesn't appeal to families. The EA said as much plus the stairs are very steep which would make it difficult for children and the elderly.

Surely the bedrooms are just what a family would want? I'm lost.

Lord_Dante

I was in a similar situation minus the hiding problem. I arranged for as many quotes as possible for any work that needed doing (At least a few for each problem). With written quotes I went back to the seller gave them copies with the survey and asked for a reduction based on the additional work needed. They accepted Only problem I had was getting the quotes as a lot of builders wouldn't deal with me when I told them I was buying the house and didn't own it yet.

poppysarah

Mercurial wrote: »

It's around 100 years old but has been refurbished to a high standard.
There are also issues with the electrics which need sorting out and problems with the roof. We've got estimates of around 8K of work.

My OH and I were discussing this yesterday - some people seem to think refurbing is all about cosmetic without doing underlying important work (ie: electrics)

Ignore decor. It'd all need doing again if you need rewiring.

Mercurial

Thanks everyone for your input it's been really helpful.

ognum - the bedrooms just don't work out as they are currently. The house which has come on the market on the same street has done what we are thinking of doing IF we go ahead with the purchase and that is move the main bathroom into one of the small attic rooms and then turn the bathroom and small single into a double bedroom with en suite. Once this has been done I think it would make the property more appealing to buyers).

Kingstreet yes we have had an independent damp survey done just waiting for the results. My dad's friend is a builder who is very experienced and he provided the quotes for us.

GDB222 - it is an issue the EA was honest about that. Lots of families came to see the property but the single rooms really are tiny and add in the staircase which is very steep it's not really child friendly. It would be very difficult for young children to climb the stairs. My mum said the same thing that she would struggle in a couple of years time. As there's only two of us we have a large bedroom and we would use one single for a study and the attic rooms for storage until we have saved up to do the improvements mentioned above.

Lord_Dante that's good to know you were willing to negotiate. Hopefully our vendor will do the same.

poppysarah - I agree 110% we were talking about this yesterday. I'd rather have a house that is sound (good wiring, damp sorted out) than having granite work tops and period sash windows added though I have to say the windows are lovely...........

GDB2222

Mercurial wrote: »

GDB222 - it is an issue the EA was honest about that. Lots of families came to see the property but the single rooms really are tiny and add in the staircase which is very steep it's not really child friendly. It would be very difficult for young children to climb the stairs. My mum said the same thing that she would struggle in a couple of years time. As there's only two of us we have a large bedroom and we would use one single for a study and the attic rooms for storage until we have saved up to do the improvements mentioned above.

Sounds like a bit of a white elephant then. Lots of little bedrooms, but not family-friendly => not easy to sell at all, so bear this in mind when making your offer. You could easily be stuck with it, just like the current vendors are.