Negotiating After Survey

Danger_Mouse

Hi,

I'm a first time buyer and just had the survey back on the property we are buying and it's highlighted a number of areas which need urgent attention.

I'm getting a friends dad who is a builder to look at the survey and put a quote together for the work.

Our offer on the house was already at the high end so I don't really want to pay this now based on the survey. What's the best way to go about negotiating the price down? Should I tell the estate agent now about the survey or wait to I get the builders quote?

Also, even though things have been highlighted as needing urgent attention, i'm not sure how serious they actually are in reality. For example, glass in a couple of doors was mentioned because it's not up to British standard (suppose my mates dad will be able to tell me more about the seriousness though), what I'm trying to get at is, will the surveyor just mention anything to cover their own backs?

Cheers,
Matt

Surrey_EA

It really depends on what the issues raised in the survey are, and how serious they are.

I should think that you've got no hope whatsoever of being able to renegotiate the price based on glass not been up to current standard.

There is a certain amount of back covering in a surveyor's report, it is probably worth trying to speak to the surveyor on the phone to understand more about the issues raised.

eddddy

You don't mention whether the valuation is less than what you offered - this will be the first question the EA asks.

The valuation will take into account any work that needs doing on the property.

Also, if the EA knows it's your friend's dad quoting for the work, they're likely to assume the quote is unrealistically high - to help you in negotiation.

(The glass is the doors is probably not safety glass. So if somebody falls hard against the door, or slams the door hard, the glass may break into large jagged pieces, which could be dangerous. Safety glass is less likely to break, but if it did, it would shatter into small pieces, which are less dangerous.)

Danger_Mouse

The survey has valued the property the same as the offer we've had accepted. The house was built around 1900 so no surprise it needed work doing but compared to other properties on the road, this is definitely the high end price.

My mortgage advisor said the EA may have people who can look at the work and quote but I'm thinking this they would just under quote as it's in the favour of the EA/seller

Also, I wouldn't expect to get money off for things like glass in doors but the survey mentions things like the below:

E1: Chimney stacks - weathered stacks;

E2: Roof coverings - defective coverings;

E4: Main walls - damp present; facings in disrepair;

F1: Roof structure - overloaded roof members; inadequate ventilation;

F3: Walls and partitions - damp present;

F4: Floors - inadequate under-floor ventilation;

G1: Electricity - no current test certificate;

cashbackproblems

I would definitely renegotiate especially given Brexit, the valuation would not have taken this into account and given the uncertainty we face for many years house prices are only going down. This might turn out to be a blessing, especially as you say you paid on the top end you will immediately be in negative equity

cashbackproblems

Danger_Mouse wrote: »

The survey has valued the property the same as the offer we've had accepted. The house was built around 1900 so no surprise it needed work doing but compared to other properties on the road, this is definitely the high end price.

My mortgage advisor said the EA may have people who can look at the work and quote but I'm thinking this they would just under quote as it's in the favour of the EA/seller

Also, I wouldn't expect to get money off for things like glass in doors but the survey mentions things like the below:

E1: Chimney stacks - weathered stacks;

E2: Roof coverings - defective coverings;

E4: Main walls - damp present; facings in disrepair;

F1: Roof structure - overloaded roof members; inadequate ventilation;

F3: Walls and partitions - damp present;

F4: Floors - inadequate under-floor ventilation;

G1: Electricity - no current test certificate;

These are not small things, roof repairs can be VERY expensive.

Danger_Mouse

Just wanted to add some more detail to the most concerning areas for me, if anyone could advise how serious these are I would forever be in your debt. :-)

The property has 3 brick chimney stacks. The stacks are shared with the adjoining
property. These are surmounted by two pots. The junction between the stacks and
the roof coverings is sealed with lead flashings.
A number of items were noted including, for example, the following:-
Several bricks are spalling.
The mortar pointing is weathered and has fallen away in places.
Most chimney pots are open to the elements.
The mortar base (flaunching) to the pots is weathered.
These defects are serious and could lead to damp.

The main roof is covered with slates.
The rear extension roof is flat and covered with traditional mineral felt.
The main roof is lined internally with sarking felt.
A number of items were noted including, for example, the following:-
Several slates are cracked, slipping and held in place with metal straps
(tingles).
The bedding mortar under the ridge is missing in places.
These defects are serious and could lead to damp.
Whilst expensive and comprehensive re-covering of the main roof is not yet
justified, the roof will need more maintenance than normal which could be costly.
Some rain penetration may occur in severe weather conditions.

The original walls are of solid brick construction. The extension walls are of cavity
construction with a brick outer leaf.
There are a small number of air vents to ventilate the air space beneath the ground
floor.
Internally, the external walls have been plastered.
The front walls contain an injected chemical damp-proof course.
The extension walls contain a plastic damp-proof course.
Your legal adviser should check that Local Authority approvals have been
obtained, if necessary and whether enforceable guarantees exist for the damp-
proofing treatment and we refer you to our comments in Section I.
A number of items were noted including, for example, the following:-
High damp meter readings were recorded which, we believe, is the result of
failure of the damp-proof course.
Several bricks are weathered and are crumbling and spalling.

The main roof space was entered through a hatch in the landing ceiling. The roof is
formed with conventional timber rafters and purlins.
A number of items were noted including, for example, the following:-
The roof space is overloaded with household goods and partially floored with
boards.
The roof space is not insulated to modern standards.
The roof is poorly ventilated.

The ground floor is mainly of suspended timber construction with solid flooring to
the kitchen. The first floor is also formed in timber. Where visible, floors have a
mixture of ceramic tile, modern timber laminate and carpeted finishes. Floor
coverings restricted close examination of the floor surfaces.
Ventilation to the air space beneath the timber ground floor is inadequate.
This is serious and could lead to timber decay.
The property has a mixture of solid masonry and timber-framed internal walls.
These have been paper lined and painted.
Internal walls on the ground and first floors have been removed and re-arranged,
but we cannot confirm if loads have been properly redistributed as the work is now
concealed.
High damp meter readings were recorded as reported previously. The wall plaster
along with adjoining timbers in these areas may be defective.
This is serious and could lead to damage and timber decay.

Steo18

Hi,

I had my survey done and they mentioned about all the window. I think they over analyse things to cover themselves.

They advised no safety check / maintenance certificate has been done on the gas and electric... however I don't know how I feel paying for this to be done before the house is mine.... I shall look forward to hearing what people say about this

Tyler119

cashbackproblems wrote: »

I would definitely renegotiate especially given Brexit, the valuation would not have taken this into account and given the uncertainty we face for many years house prices are only going down. This might turn out to be a blessing, especially as you say you paid on the top end you will immediately be in negative equity

Really Brexit? Hardly a reason for a seller to accept a lesser offer. Yes there is slightly more uncertainty than normal, but armageddon has not actually happened. House prices may stay level, they may go down, or they may be go up....seems like any other year.

The OP should offer what he is comfortable paying. Personally I know my offer is right if I feel a bit cheeky with it. If it is rejected, I can only go up. Once a high offer has been accepted, it can be very very tough to get a seller to then accept less, regardless as to what the survey report has brought up. Add in that the survey report valued the property at the same amount as the accepted offer, the seller has no reason at present to negotiate down.

DRP

cashbackproblems wrote: »

I would definitely renegotiate especially given Brexit, the valuation would not have taken this into account and given the uncertainty we face for many years house prices are only going down. This might turn out to be a blessing, especially as you say you paid on the top end you will immediately be in negative equity

Why do you say it wouldn't have taken this into account?

Surely, a bank and a professional surveyor are *more* likely to have factored this into their calcs ? it is the bank's money at stake, and their professional reputation, after all...

(perhaps they think no effect in the near future?)

bris

You have to remember the survey price is taking the work needed into consideration so the value is in it's present condition. If the work was done it would be worth much more so don't be surprised if they tell you to do one.