Renegotiating house price

evs50

We've had a homebuyers survey and the mortgage company are about to send out an offer. They have said there will be 5k retained until they receive an electrical report, drainage report and the render issues are fixed. There will also be £65 reassessment fee after all the above is completed and a further £30 transfer fee for the retained money.


I am about to get some quotes (so you know what stage I'm at), the estate agent has been made aware of the issues. Where do I stand regarding renegotiating the price of the house etc? Or asking the seller to complete the work? How should I play it and how much (if any) should I expect the seller to contribute. I should probably point out they don't live in the house and have been letting it out for the past 4-5 years. The estate agent said they would be happy to do that again when we were shown around, but this could just have been a sales technique.


Thanks in advance for advice


James

sinizterguy

Unless the agreed price took into account the work to be done, I certainly would renegotiate.

I probably wouldn't want the seller to arrange to do the work (unless you think more issues might turn up when the work is being carried out) as I would prefer to arrange people I feel I can trust, rather than the cheapest quote, which is what the seller will go with.

evs50

Thanks for that. The work is only as a consequence of the home buyers report and the above in the original post are requirements of the mortgage. The 5k retention is based on this. So no the work wasn't agreed at point of offer. I guess I'm just wondering how to play it and how much % wise should we be realistically asking for from the seller. I think we are looking at £240 for the reports (drain and leccy), £95 to reassess and release funds and then whatever the render costs. I was thinking of pricing the work needed, then asking for a price for the whole house to be rendered. If I can get the whole thing done for 4k, do you think asking them to stump up/knock off 2.5k would be cheeky?

LEJC

So do you have a plan B for if the vendor just says no....and would you pull out of the sale?


Are you prepared/able to lose whatever costs you have already incurred as a result of the purchase because of the retainer

dannim12345

I would ask for the full amount (or maybe more) to be deducted as a starting point - you can always negotiate from there. If you start at £2.5k there going to try and know you down...

However what's the market like in your area? If its very competitive they might just refuse to budge. If the market is slow, they might be worried to lose you as a buyer or worry they'll have the same issues with another buyer.

Are you prepared to walk away?

AdrianC

Did the survey which highlighted the issues give a value for the property, taking them into account?

If you were buying from me, I'd be asking for a copy of the survey before even starting to consider a reduction. If the valuation tied with the agreed purchase price, after taking those issues into account, then you'd be being handed the survey straight back with that paragraph highlighter-penned.

If the surveyory's value is lower, because of those issues, then I'd be quite happy to talk - and, yes, £2500 against a £4k value reduction or bill would be perfectly reasonable.

evs50

The valuation was 5k less than agreed price and the 5k retention was on the mortgage valuation report. I am more than happy to provide the seller with the survey. I have already sent the estate agent a copy of the mortgage valuation report. The house has been on the market since February, but they don't live there so they aren't in a chain. I don't know their personal circumstances, ie. reason for selling/need to sell. But obviously they could just go back to letting it out. We are insured against losses if sale doesn't go through, although I guessing the proof of hat pudding would be tasted should we need to claim. We like the house though and really want to move in.

The_Hurricane

What are the render issues and is the mortgage company advising the 5k of the agreed mortgage loan is being withheld until the above is carried out, does this still mean in the present condition they will give the mortgage less 5k?

kingstreet

evs50 wrote: »

They have said there will be 5k retained until they receive an electrical report, drainage report and the render issues are fixed.

The time to renegotiate is when you have the reports and estimates in hand and the cost is known.

At the moment all you have is a suggested retention which can be amended when the reports and estimates have been assessed by the valuer.

BTW, what's the value in current condition and after essential repairs?

evs50

The_Hurricane wrote: »

What are the render issues and is the mortgage company advising the 5k of the agreed mortgage loan is being withheld until the above is carried out, does this still mean in the present condition they will give the mortgage less 5k?

The render is shrinkage and some "localised patching required". The mortgage offer has been sent out to us I'm informed, and the mortgage valuation report says they will withhold 5k until render is done and electric and drainage reports are received. They will then reassess at a cost of 65 quid and there will be a 30 quid transfer fee to release the remaining 5k.

evs50

I should also point out that "scaffolding will be required", according to the report. So this is obviously gonna cost a few quid.