FTB - Survey & Valuation Results - Advice needed.

mchu6am4

Hi,

I'm in the process of buying a vacant semi 3bed house in Manchester - the house was originally advertised @ £175k and susequently reduced to £169.5k (after about six mths on the market). The house requires FULL cosmetic makeover including a kitchen and bathroom, floors/carpets and lighting (possibly new electrics).

I was very interested in the house as it was a good size corner plot - and my initial offers of £153k and 157k were rejected. I contacted estate agent for some feedback and was told that I'd have to revise my offer (as the vendor has rejected an offer of £164k - any truth in that? I don't know). Finally, I made final offer of £165k and was accepted.

So I had a FULL building survey/valuation done on (£630) it. The valuation has come back with the house being valued @ £158k in its current state. The General Contruction Standard has been rated as Average as well as Structural Repair as Average. Not surprisingly, Decorative Repair rated as Poor. A couple of main problems found are:

* Front gully badly settled and a couple of bricks adjacent to it have dropped slightly - likely drain broken and will need excavation etc. for repair.

* Requires general maintenance including some repointing, some roof patching and external decorative repair.

* Remedial timber and some damp treatment required.

I have not received the full report yet, but have spoken to the surveyor. My main concern is the gully as it could have damaged the foundations - cost of repair has been allowed for @ £2.5k (is that how much it is likely to cost?). The rest of the work is general external maintenace and full internal modernisation.

Now, I don't know what to do. I am still interested in the property (have spent £630 on survey) but cannot justify paying my original offer - made in good faith on the assumption that the house was structurally sound (obvisiouly not) and just needed modernisation. The total cost of all repairs and modernisation has been put @ £20k. I would be happy to pay the valuation of £158k but fear that the vendor will not accept it (as the agent said the vendor had earlier rejected an offer of £164k). I can supply the agent with copies of the valuation and survey report (and also the surveyors phone - I have permission from him) in case the vendor would like to investigate my claims etc. Bottom line is - I want the house (as I had it surveyed and also two weeks have passed since the offer) but fear that the stubborn vendor may not be willing to drop the price.

Any advice on how to deal with the situation most welcome (do I need to approach agent through my conveyancing solicitor?)

Thanks in advance, Ash

jackie_w

Hi Ash,

Why dont you go back to the EA and tell him you wish to reduce your offer and give him the reasons why. Have there been any other surveys done on the property? If there have, then this might be the reason why no one has bought it. The seller might reconsider your offer if he knows your still interested with all the work that needs done.
If the seller doesnt accept the reduced offer, and you really want the house, you might find that you may need to stick to the higher offer im afraid.

I might find myself in the same position, theres a house my husband and I have seen, and its been on the market for a long time. If I get my house sold, im going to get a survey done on the house, and its a full structural survey i want, and if that comes back with alot of damage, then, im going to put in a low offer, and if that gets rejected, i will need to seriously think about how much I want the house.

Best of luck to you, and let me know how you get on.

Jackie

mchu6am4

When I receive full report, I'll have a word with the EA and take it from there. I don't know what else to do being FTB!

Tiger_greeneyes

Did you surveyor tell you the gulley could have damaged the foundations, or is that just an assumption on your behalf? I would have thought that the surveyor would have mentioned it in the survey if he thought it was likely.

Why don't you think about getting a cctv drains survey done? You could also get a quote on the repair, although the surveyor has provided you with an idea of the cost, it would be good to have it in black and white.

Tbh, the survey doesn't sound too horrific. Structurally it seems sound - and that's the main thing. Once you've got the gulley fixed, done the repointing and got the damp and timber company in to treat the property, it's sorted.

The problem with surveys (especially the homebuyers and building surveys) tend to strike the fear of God into people, ftb or not! Chill out (if you can!), get quotes on all the points the surveyor has addressed and then think about what you want to do. Your EA will be able to help you with a D&T company, most survey for free. A builder will sort the pointing and check the yellow pages for a cctv drains surveyor.

You can ask for a price reduction, if that's what you want - and it never hurts to ask - but ultimately if you love the house enough and you can cover the works then you could still buy it.

Try to step back a bit if you can, otherwise you'll do your own head in! You'll come across this every time you move, I promise

ukdickie31

Is losing £600 better than spending £2.5K + on the repairs etc.. (possibly much more), especially if the vendor won't budge.

Simple as that sometimes. Take the emotion out of it

mchu6am4

Many thanks to all for your kind contributions.

I've not had the full building survey report back yet but spoke to the surveyor on the phone and he did say that there is (only very slight) possibility of foundations being damaged - though he has not mentioned foundations etc. it the valuation report to the bank (which I have a copy of). However, other problems I've mentioned here were documented in the report - although the word 'some' was preceded by pretty much all of them.

One question, what is a D&T company and also do I get the estimates/inpspections done etc. before I revise my offer or discuss it with the EA?

Thanks, Ash

mchu6am4

ukdickie31 wrote: »

Is losing £600 better than spending £2.5K + on the repairs etc.. (possibly much more), especially if the vendor won't budge.

Simple as that sometimes. Take the emotion out of it

I'll try but its not easy.

Tiger_greeneyes

D&T - Damp & Timber company, your EA will be pleased to recommend someone

As for pulling out - you can pay £600 on the next survey and it could well be a similar situation. Surveys are there for a reason, to highlight problems. Think seriously before you pull out because the next one will also have problems.

aqueoushumour01

ukdickie31 wrote: »

Is losing £600 better than spending £2.5K + on the repairs etc.. (possibly much more), especially if the vendor won't budge.

Simple as that sometimes. Take the emotion out of it

Ok you 'lose' the £600 survey you've had done but you need to consider whether the house is worth the extra costs. It's like gambling in a way - you've lost £x so you continue to gamble to try to win back what you've lost but you continue to lose money.

If you're happy to pay the extra cash for it then stick with it but forget about the cost of the survey you've had done.

mchu6am4

One thing I've not mentioned so far is as follows:

Another similar size house (though not a corner one) on the same Road is fully decorated/refurbished and in excellent condition, is on market for £194k. This one is @ 165k (accepted offer) though the valuation is lower (158k). However, apart from the work I've already highlighted, its needs A-Z of modernisation - painting and decorating, carpets, kitchen, bathroom and lighting (and then refurbishing!) - Its fully DG & CH(though the boiler is a bit old)

Any suggestions now?

Tiger_greeneyes

The figures seem to stack up really well

Personally, going on those figures, I'd try to get some money off the purchase price, but if it didn't happen, then I wouldn't worry too much as there seems to be a pretty good profit in it.

One thing to remember, the comparable property is on the market for £194k - it's not sold for that. It could be overpriced. Check out http://www.nethouseprices.net to see if there's any in the area that have sold.

Btw, you don't have to let the surveyor's valuation in current condition determine what you do, it's meant as a guide