Building survey shows problems but Valuation was OK

dominoman

We have just had a structural survey done and it showed some very significant problems to the foundations of the house. The waterproofing has failed which has led to rotten joists, and now the interior walls are starting to sink.

I know I should probably walk away, but we like the house and we've got quotes so know that if the price came down a bit we could afford to do the work, so long as it didn't escalate.

My question is how to negotiate now? I went back to the seller and they accept the survey findings, but then asked for the copy of the mortgage valuation. That valuation didn't show any problems so they've said they can't reduce the price.

Does anyone have any advice on how to agree a lower price now?

Mr_Moo_2

The valuation in pretty meaningless other than as a piece of paper for part of a process. but it is done by a professional and therefore might set a reasonable 'benchmark' - which is the view of the seller obviously. Just be honest with them - with the work involved I'm only willing to pay £x. butr be prepared for them to say no. Which in all homesty would be a good outcome for you, as you appear to know already

Road_Hog

dominoman wrote: »

We have just had a structural survey done and it showed some very significant problems to the foundations of the house. The waterproofing has failed which has led to rotten joists, and now the interior walls are starting to sink.

My question is how to negotiate now? I went back to the seller and they accept the survey findings, but then asked for the copy of the mortgage valuation. That valuation didn't show any problems so they've said they can't reduce the price.

Work needs done.


Valuation is irrelevant, you made the offer on the condition that the house was in reasonable condition.


It isn't that they can't reduce the price, it is that they won't reduce the price.


Just tell them that you can't pay the offer price and walk away unless they want to drop the price.

dominoman

Road_Hog wrote: »

Valuation is irrelevant, you made the offer on the condition that the house was in reasonable condition.

It isn't that they can't reduce the price, it is that they won't reduce the price.

Just tell them that you can't pay the offer price and walk away unless they want to drop the price.

Thanks. I know there is other interest in the property so if I ask for too much off it will just get relisted or go to another seller.

I'm inclined to wait and see what they suggest now. I've told them I am prepared to take it on and carry the risk of the work escalating even further, but I can only do that at a significantly reduced price.

It's a probate sale being handled by a property company which means I am dealing with a written procedure rather than a interested person. Makes it slower and harder.

G_M

They will soon find that other buyers are also concerned when their surveys come back. Many will just pullout in which case they will come back to you if you have left your offer open ie:

My new offer is £X. If you do not accept it now, I will happily consider continuing the purchase at that price if you come back to me in the future (however in the meantime I will be house-hunting again).

Road_Hog

G_M wrote: »

They will soon find that other buyers are also concerned when their surveys come back. Many will just pullout.

This^


Must buyers will run a mile when they see major building work. We now have a generation that does not understand that, the house is worth Y less the value of X (cost of work required) so we will offer Y-X or even a cheeky little under offer.


Offer what you feel is right, there is no perfect answer, you'll always be thinking, did I offer too much, could I have got it for less, or if only I'd offered a little bit more, I could have secured our dream house.

AdrianC

dominoman wrote: »

We have just had a structural survey done and it showed some very significant problems to the foundations of the house. The waterproofing has failed which has led to rotten joists, and now the interior walls are starting to sink.

I know I should probably walk away, but we like the house and we've got quotes

You've had actual real live builders in, post-survey, investigating in detail on that specific issue?

so know that if the price came down a bit we could afford to do the work, so long as it didn't escalate.

The cost will escalate. The cost always escalates.

leccyblue

The mortgage companies valuation is irrelevant. Their survey is to establish whether the property is mortgageable, and what it is worth. Defects will not be picked up on this, unless they are blindingly obvious. The surveyor won't look at anything in any detail.

So the vendor is being a bit cheeky asking to see this.

The vast majority of people at this stage would either a) walk away or b) get an accurate estimation of costs and reduce their offer accordingly.

BE VERY CAREFUL. Failing foundations and interior walls starting to sink is NOT something to treat lightly. You may also find that you can't get buildings insurance (which your mortgage company will need to see before releasing funds), or that the buildings insurance is very expensive due to the pre-existing faults.

Personally if I were you I would either walk away, or insist that the problems are rectified (by the vendor) prior to exchange of contracts.

Don't be fooled into thinking you will lose the property unless you rush ahead. This will be a MAJOR issue for any potential purchaser.

Dan-Dan

This thread makes it seem like you already live in the house
https://forums.moneysavingexpert.com/discussion/4849329

You should be sprinting , like usain bolt , for the hills

Thrugelmir

Dan-Dan wrote: »

This thread makes it seem like you already live in the house
https://forums.moneysavingexpert.com/discussion/4849329

You should be sprinting , like usain bolt , for the hills

Appears to live here as well.

I am supposed to be moving into a new flat in Forest Hill today, but I have just been to it and it is not at all ready.

The landlord told me it would be cleaned and painted. It hasn't been painted, and it needs lots of maintainance. Most doors are missing handles, the light fittings are broken with bare wires showing, the furniture is in terrible state etc.

In addition the previous tenant is still moving out and his bike and boxes are in the hallway.

The landlord is coming tomorrow to collect the first months rent. What should I do. I have to move in today but an upset that it is in such a state.

I feel it is greedy for the landlord to say it is available from today when she knew the previous tenants were leaving only yesterday after 4 years there. Surely they should have left some days spare between them moving out and us moving in to do repairs etc.

I feel stuck, and upset that I can't move in properly.

https://forums.moneysavingexpert.com/discussion/4808847

Dan-Dan

man of many houses (and flats!)
trolls , you gotta love `em