offer accepted but condition for no reduction post survey

hi123

hi i have had a look at a house ,we will like to alter and extend it
offer accepted today but on one condition that their will be no renegotiation of price after survey
seem dodgy to me
are there any pitfalls to this as the price is nearly 500k
what should i do
are there likely to be mortgage issues
can i have some help from more experienced ms experts please

marksoton

hi123 wrote: »

hi i have had a look at a house ,will need major renovation Right
offer accepted today but on one condition that their will be no renegotiation of price after survey Tell them to jog on..
seem dodgy to me
are there any pitfalls to this as the price is nearly 500k
what should i do Probably walk away. Certainly not agree to this condition. And probably keep looking elsewhere..
are there likely to be mortgage issues Yep
can i have some help from more experienced ms experts please

Dear me. Hardly a confident vendor is it..

kinger101

Personally, I'd retract my offer unless it was an absolute bargain. Or at the very least, don't progress the mortgage application/legal work until a full structural survey as been carried out so you minimize your losses if you do back out.

A bank may well decline a mortgage if there are major structural problems. They may well value it at less than you offered, which would mean they'd only advance to the percentage of their valuation. The bank could also put a retainer and not release all funds until specified work has been completed.

Has a sale on this property previously collapsed? If so, find out why.

It's a bad attitude from the vendor. If something unexpected and major turns up, they'll likely have to reduce their price anyway if you back out.

mrginge

hi123 wrote: »

hi i have had a look at a house ,will need major renovation
offer accepted today but on one condition that their will be no renegotiation of price after survey
seem dodgy to me
are there any pitfalls to this as the price is nearly 500k
what should i do
are there likely to be mortgage issues
can i have some help from more experienced ms experts please

It's not dodgy. They are doing you a favour.
You now know that there is no point going any further if you think the survey will throw up any issues that you have not taken account of in your offer.

You did make a sensible offer didn't you.....

PeonySugar

We had the exact same problem. We took a gamble and got a full structural survey independent of our lender to find out exactly what would need doing. It has paid off as we have just exchanged contracts, although it needs a lot of work doing it, if you're prepared to get your hands mucky or you can afford to get the work done for you then go for it and get the survey. If you get the survey before you do anything else then you'll just lose out on the survey and cut your losses at £500 or so.

hi123

thanks that was very prompt
its about 10% below the asking price though it has been on the market for about 9 months in leeds
so i think its a sensible offer but not a throw away bargain

Kynthia

Loads of sellers aren't going to renegotiate based on the survey, it's just these sellers are being upfront about it. If it clearly needs renovation and is priced appropriately then there isn't going to be much the survey will find that would justify a reduction.

So if it was priced appropriately then that wouldn't put me off.

PeonySugar

hi123 wrote: »

thanks that was very prompt
its about 10% below the asking price though it has been on the market for about 9 months in leeds
so i think its a sensible offer but not a throw away bargain

Mine is 10% below and in Leeds too, so it sounds about right

alchemist.1

Remember you're not committed to buying until you exchange contracts. The vendor can ask for any terms he wants at this stage.

hi123

alchemist.1 wrote: »

Remember you're not committed to buying until you exchange contracts. The vendor can ask for any terms he wants at this stage.

and thats what i was surprised with this condition as even the vendor can refuse if i try to renegotiate post survey
my worries were
is there anything i am missing in the property
and
any potential mortgage issues?

alchemist.1

hi123 wrote: »

and thats what i was surprised with this condition as even the vendor can refuse if i try to renegotiate post survey
my worries were
is there anything i am missing in the property
and
any potential mortgage issues?

That is what the survey is for.

Essentially there might not be anything seriously wrong with the property but the vendor doesn't want someone using the survey to push the price down on issues already visible.