Reducing house price at last moment before exchange

dominoman

I am in a bit of a dilemma. I'm a FTB looking for a house or flat and finally put an offer on a flat in Tooting at 535k (15k over asking price). I knew it needed a lot of refurb work but when the surveyor did the structural survey he uncovered a lot more than I had expected. In total he thinks it will cost around 60k to do the work needed. He also told me to not bother with it and keep looking.

Now, I want to reduce my offer price. My dilemma is that I knew it needed work, so I can't really lower it on that basis. However, I had no idea how much it would need. I don't know if it is immoral to lower the offer price by the amount the surveyor says it will cost? More importantly I worry the seller will just say no and put it straight back on the market.

The market here in South London is crazy. Houses appear and then go under offer within 2 or 3 days, before I can even get to a viewing. Nearly everything is going above asking price.

Do I love this flat? Not really, but I think I could grow to love it. I'd be happy with it for a lower price, but I am not comfortable paying what we already agreed because of the words of the surveyor.

Should I drop the offer price by 60k now, just days before exchange? Or maybe by at least 35k to get below the stamp duty threshold?

jibbyboo

If you don't ask you'll never know.

I didn't realise the house I'm purchasing wasn't up to the electrical standards until after survey.

I loved the house, so agreed to continue at the original purchase price despite the additional work because the vendor wouldn't reduce.

pimento

You don't love it, your surveyor said 'leave it and find another one', you've paid over the odds and you still need an answer to your question?

I have some snake oil here you might be interested in..

mummyroysof3

Give it a go and if they say no then pull out would be my advice

nomunnofun

Perhaps a silly question but what did the surveyor say that the property was worth without the required repairs having been completed?

sirmosh

nomunnofun wrote: »

Perhaps a silly question but what did the surveyor say that the property was worth without the required repairs having been completed?

This is a great point, the asking price may have taken the work required into account already.

Running_Horse

£535,000 for a south London flat? Wow.

Offer what you think it is worth.

hazyjo

I'd pull out if I were in your shoes... something better will come along Maybe consider another area? Not sure where you're looking, but there are some great areas at far cheaper prices.

Blackheath, maybe?

Jx

dominoman

nomunnofun wrote: »

Perhaps a silly question but what did the surveyor say that the property was worth without the required repairs having been completed?

The surveyor didn't value it so I don't know. The bank is doing a separate valuation survey on Monday so I will find out then. SHould be interesting.

When I suggested knocking 35k off the price, the surveyor raised his eyebrows and suggested more! The problem is that most of what he found is on the roof and in the structural beams, so could be v expensive to put right.

If I could get the cost of the work knocked off the price I'd be very happy, but I just don't think the vendor will accept such a huge drop.

Dan-Dan

dominoman wrote: »

If I could get the cost of the work knocked off the price I'd be very happy, but I just don't think the vendor will accept such a huge drop.

if the next potential buyer has a surveyor worth his salt , eventually they will realise they dont have any choice

Move on....

ftb101

dominoman wrote: »

The surveyor didn't value it so I don't know. The bank is doing a separate valuation survey on Monday so I will find out then. SHould be interesting.

When I suggested knocking 35k off the price, the surveyor raised his eyebrows and suggested more! The problem is that most of what he found is on the roof and in the structural beams, so could be v expensive to put right.

If I could get the cost of the work knocked off the price I'd be very happy, but I just don't think the vendor will accept such a huge drop.

Re the roof and structural beams, worth checking in the lease agreement whether this falls with the responibility of the flat owner or the owner of the freehold (presuming its a leasehold)
Other than that, go for something you're actually prepared to live in and do the work in if it needs it (will always take longer than tradesmen will estimate)