Down valuation and Survey Issues - How would you renegotiate?

andre3000

Hello

Offer of £132k accepted by the vendor.
Valuation by the surveyor = £125k

It's a period property in need of serious improvements.
The survey has pointed to quite a few issues with the electrics, roofs, chimneys, etc...

I'd like to use this opportunity get the price down to £120k .
2 similar sizes houses on the street have been reduced from £130k to £120k.
They've been on sale for 4 months, it's not a sought after area and a buyer's market (in my opinion).

How would you do it? How woudl yoy approach the vendor?
Advice needed please

Hoploz

You can always ask.

I can see why you'd be trying to negotiate as far as the valuation of 125k, but if you want to pay less, why are you not buying one of the others? Perhaps this one is better? (Which might make it worth more?)

You would do it by telling the estate agent you are changing your mind and give them your new offer.

andre3000

I didn't view the other houses so I don't what they're like but yes, I like this house and I am ready to pay £125k for it. I just would like to use this opportunity to get the price further down to £120k.

warby68

I suspect the vendor might be expecting a problematic survey given the property is 'in a state' but if you actually want to pay materially less than the valuation its more to do with you reassessing the local market and what price you are now willing to pay, with the valuation and more particularly the extensive work needed, confirming in part this view for you.

Im guessing you'd be willing to start at £120k and hope they accept £125k as some middle ground?

I can see £120k from £132k being a stretch for a vendor to stomach but you never know with 'a wreck'

I tend to think honesty is best - you have reassessed the competitor properties, the survey valuation and the amount of work needed and have changed your mind.

AdrianC

andre3000 wrote: »

Offer of £132k accepted by the vendor.
Valuation by the surveyor = £125k

I'd like to use this opportunity get the price down to £120k .

Good luck with that...

You thought it was worth £132k a week or three ago, but the surveyor thinks it's worth £125k.

Aim for £125k, and you might get somewhere. Aim lower, and be prepared for the vendor to tell you where to stick your buyer's remorse.

andre3000 wrote: »

I didn't view the other houses so I don't what they're like but yes, I like this house and I am ready to pay £125k for it. I just would like to use this opportunity to get the price further down to £120k.

Mmm...

HouseBuyer77

If you actually thought it was worth £120k starting negotiations with an offer of £132k seems a little odd....

eddddy

andre3000 wrote: »

I just would like to use this opportunity to get the price further down to £120k.

But, just to keep things in perspective, I expect the vendor would like to keep the price at £132k.

The question is probably as much about the mindset of the vendor, as anything else. How much do you know about the vendor?

Some people can be very bloody-minded and some can be very reasonable.

Are you more desperate to buy, or is the vendor more desperate to sell?

You can certainly test the water by reducing your offer to £120k. I guess the main risk is that the vendor then thinks you're a 'chancer' and/or a 'difficult buyer' - and is more suspicious of everything you do in the future.

motherofstudents

I would forget £120k and just say the valuation has come back at £125k. If you didn't have a large deposit to cover the shortfall on a mortgage, you would have to do this anyway. That's just what I would do, if you go in with £120k you might get lucky - on the other hand the vendor might tell you where to go.