Estate agent: successful lender valuation survey mean renegotiation is not possible

f_warne

FTB currently in process of buying...

Our building survey has come back with ~8k of 'urgent' repairs.

We have been contacting contractors to visit the property to get quotes.

The estate agent has sent a message to me explaining that any renegotiation is very unlikely because the lenders valuation survey has been successful, and so this is more important than our building survey. (Our building survey was done separately from the banks valuation survey, but does not include an overall valuation).

Does what the estate agent says sound right? My understanding is that the lenders valuation survey is fairly superficial and only serves as a confirmation that the property is reasonable security for their loan.


thanks for any advice!

Thrugelmir

f_warne wrote: »

My understanding is that the lenders valuation survey is fairly superficial and only serves as a confirmation that the property is reasonable security for their loan.


thanks for any advice!

Correct.

Why pay more than you should.

HouseBuyer77

You can always renegotiate though the vendor may stand firm.

Sounds like the EA's trying to make you stick to your initial offer. Stand firm and don't let them, be prepared to walk away.

Though how urgent are the urgent repairs and what are they? For example if the survey says the windows urgently need replacing and the windows are obviously in a poor state then the vendor will say your offer was made on the basis on the properies current condition and the state of the windows was clearly visible and as such won't accept a discount from initial offer based upon them.

f_warne

Thanks Thrugelmir - sorry what do you mean by your second sentence?

f_warne

Thanks HouseBuyer77. Its roof, damp, and electrics that we wouldn't have known about, along with some stuff that was obvious when we viewed, that we would accept anyway.

We wouldn't ask for anything unreasonable, but the basis of the estate agents argument seemed odd to me.

kinger101

You're right. The survey you commissioned will have more detail. It still doesn't mean the vendor will reduce there price. If you speak to the EA again (rather than doing this via solicitors) you need to rehearse what to say.

For example, if the EA told me the lender's survey was more important, my replay might have been "not to me it isn't'......I had the building survey done for a reason".

EDIT - surveyors always say electrics are not up-to-date. Electrics rarely ever are as standards are constantly updated. You can usually gauge the age of the electrics from the distribution box. I don't think that's a renegotiation point unless there has been some dodgy DIY.

eddddy

f_warne wrote: »

The estate agent has sent a message to me explaining that any renegotiation is very unlikely because the lenders valuation survey has been successful, and so this is more important than our building survey. (Our building survey was done separately from the banks valuation survey, but does not include an overall valuation).

The EA just wants the sale to complete - and will say anything to anyone to try to make it happen as soon as possible.

So the EA will push you not to reduce your offer...

... but if you insist, he will push the seller to accept your reduced offer.

If the EA thinks you are a softer target than the seller, he's likely to push you harder.


But... ultimately it's up to the seller whether they would accept any reduced offer.

Thrugelmir

f_warne wrote: »

Thanks Thrugelmir - sorry what do you mean by your second sentence?

Edited. more was missing.

G_M

I'm just wondering how the EA knows what the lender's Valuation was.......?

As for re-negotiation, that is not up to the EA - he can advise you, just as he can advise the seller.

But at the end of the day you can offer what price you want up to Exchange of contracts, and the seller can agree, refuse, or make a counter-offer.

Caz3121

genuine question: if the buildings survey gave £8k worth of repairs but no overall value, can you be sure they would value it lower than the lenders survey?

jbainbridge

How does the EA know the survey results? You didn't tell them did you?