offer accepted but condition for no reduction post survey

kinger101

alchemist.1 wrote: »

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.

That's fair enough, if it's stuff which should be apparent to a lay person on visual inspection. But they shouldn't really be prejudging the survey. Something which both parties had not anticipated might show up.

ManuelG

OK, from the vendor's perspective, I'd assume that as the house "will need major renovation," then the price takes that into account.

And maybe the vendor is bored of offers falling through when people use said major renovation to negotiate on the already discounted price?

So... I'd have a chat with the vendor (through estate agents if needs be, but ideally face to face if possible) to clarify why the vendor is concerned about what a survey may bring up, and maybe to reassure you know the price is discounted... it's only if major MAJOR renovation is exposed that it might be an issue.

And if you do uncover something MAJOR, would you be pulling out anyway, even if the vendor would negotiate?

hi123

ManuelG wrote: »

OK, from the vendor's perspective, I'd assume that as the house "will need major renovation," then the price takes that into account.

And maybe the vendor is bored of offers falling through when people use said major renovation to negotiate on the already discounted price?

So... I'd have a chat with the vendor (through estate agents if needs be, but ideally face to face if possible) to clarify why the vendor is concerned about what a survey may bring up, and maybe to reassure you know the price is discounted... it's only if major MAJOR renovation is exposed that it might be an issue.

And if you do uncover something MAJOR, would you be pulling out anyway, even if the vendor would negotiate?

there has not been any serious offer on the property,acc to estate agent only concrete offer with proof of finance has been us in last 6 months
the offers prior to that were around 400k ,that would have been discounted price
we have factored cost of extension,upgrading heating, electrical system and moving some walls to create more space new bathrooms,kitchen etc
will try to speak to estate agent tomorrow
would a builder be a good person to take around to see or a proper survey

AdrianC

The house is on the market as in need of major renovation.
You are placing your offer on it as in need of major renovation.
Seems only fair to say that's the basis on which the offer is being accepted, so there's no point in trying to then reduce further based on work being needed...

hi123

AdrianC wrote: »

The house is on the market as in need of major renovation.
You are placing your offer on it as in need of major renovation.
Seems only fair to say that's the basis on which the offer is being accepted, so there's no point in trying to then reduce further based on work being needed...

i never even brought the issue of renegotiating,nor had any intention for the work we already know need doing
it came from the vendor today and it did take me by surprise

AdrianC

So they're just pre-empting what you weren't going to do anyway. No great issue. Right?

KRB2725

We had the same. Offer accepted but no renegotiation after survey. Not a problem, it was a refurb job anyway and if it had been structurally unsound we would have pulled out.

teneighty

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

You need to do more research to establish the market value. I usually calculate the market value if it was in good condition, online sold prices of similar properties then deduct the cost of all the work plus an allowance for my time and trouble, anywhere from 10% to 20% of the cost of work. Otherwise you might as well go and buy a perfectly presented house around the corner and save yourself months of work and aggravation.

I see it all the time where people just knock a percentage off the asking price but if the asking price is inflated you still end up paying too much. If it has been on the market for 9 months I suggest this is the case here.

In reality the condition of no negotiation after survey is rather pointless. Once you have the survey back if it shows £20k of unseen work you just go back and say you want £20k knocked off or you withdraw your offer. The vendor has to decide if they think they will find another mug to pay the inflated asking price (unlikely after 9 months) or they back down and accept the lower offer. Exactly the same position you would be in with any purchase.

wwl

As a vendor for my late mother's property I accepted an offer on exactly this basis.
Their initial offer was quite low and refused, and was subsequently increased. I wasn't prepared to accept any less than the second offer, so taking it off the market would be a risk unless I was sure they wouldn't start playing games later.

There were issues that were pointed out at viewing, for example that the boiler was on its last legs and should be assumed to need immediate replacement, so to avoid wasting everyone's time I accepted with the proviso that price was non-negotiable.

As mentioned, until contracts are exchanged either party can do anything, but if a vendor makes it clear that acceptance of the offer is conditional on the price not changing, it makes their position clearer to the buyer, who is free to take it or leave it.

G_M

They are being honest and upfront with you.

You now know that they will not reduce the price whatever happens, so the deal is: buy at this price or not at all.

You can proceed, knowing that if you later have concerns about the price due to a survey yo will have to pull out.

Or you can pull out now and save yourself the cost of survey etc.

full marks to the seller for honesty and helpfullness