First time buyer - Survey results

TrickyTree83

amateur_house wrote: »

I am in a similar situation to you at the moment. My offer on a house in need of modernisation was accepted, my homebuyers report says there is rising damp and penetrating damp, possibly caused by poorly installed cavity wall insulation.

The valuation is the same as my offer, and the surveyor has recommended a £3k retention but says the work could cost far more. I have not contacted the estate agent to discuss it yet, but my concern is that the estimated valuation after completion of the work is £3k more. So if it costs much more than £3k to sort out I am in effect paying more than the house is worth.

Sorry I can't offer any advice, but will be interested to hear how you get on.

Usually in a situation where the valuation comes back around the price you've agreed but the survey throws up questionable elements of the house you'd get quotes to remedy the work and discuss with the seller, either the seller rectifies these issues (if they're major for you) or you offer to do them yourself once you've moved in after negotiating the price down to compensate for the cost. Sometimes it's sensible to meet in the middle (i.e. if the cost is £1,000 then you both take a £500 hit).

Don't base it on fantasy surveyor estimates for the work though. Ask some professionals, they may say there's nothing that needs doing.

amateur_house

TrickyTree83 wrote: »

Usually in a situation where the valuation comes back around the price you've agreed but the survey throws up questionable elements of the house you'd get quotes to remedy the work and discuss with the seller, either the seller rectifies these issues (if they're major for you) or you offer to do them yourself once you've moved in after negotiating the price down to compensate for the cost. Sometimes it's sensible to meet in the middle (i.e. if the cost is £1,000 then you both take a £500 hit).

Don't base it on fantasy surveyor estimates for the work though. Ask some professionals, they may say there's nothing that needs doing.

Yes, it does seem sensible to get quotes for the work. The mortgage advisor says that these reports (damp / electrical) can cost a few hundred pounds and if I walk away now all I've lost is the cost of the survey. The last house I bought had a retention of £1,500 but the actual work cost £4,000, so after that experience I am wary.

Mary83

amateur_house wrote: »

I am in a similar situation to you at the moment. My offer on a house in need of modernisation was accepted, my homebuyers report says there is rising damp and penetrating damp, possibly caused by poorly installed cavity wall insulation.

The valuation is the same as my offer, and the surveyor has recommended a £3k retention but says the work could cost far more. I have not contacted the estate agent to discuss it yet, but my concern is that the estimated valuation after completion of the work is £3k more. So if it costs much more than £3k to sort out I am in effect paying more than the house is worth.

Sorry I can't offer any advice, but will be interested to hear how you get on.

I am still waiting to hear back from the Vendor, I spoke to the estate agent yesterday and he is reviewing the quotes I provided and should be coming back to them today. I will let you know how I get on. I hope you are able to come to an agreement on yours.

amateur_house

I hope the quotes are reasonable Mary83. Was it expensive to get the reports?

Mary83

amateur_house wrote: »

I hope the quotes are reasonable Mary83. Was it expensive to get the reports?

My home buyer report was £330, we have had a few quotes now and to be fair all seem reasonable

amateur_house

Mary83 wrote: »

My home buyer report was £330, we have had a few quotes now and to be fair all seem reasonable

I was referring to the reports on the work that needs doing. I've already paid for my homebuyer report (about £300 too). It is the homebuyer report that says I need to get damp and electrical reports, I've not looked into it yet, but the mortgage advisor says these will cost me several hundred pounds. It feels to me like I would be throwing good money after bad if they come back saying it will cost thousands to sort out the damp! Did you have to pay for the quotes / reports? From what you say it sounds like you haven't had to pay for those, so maybe the advisor is wrong that you have to pay for them. I tried to get more information from the surveyor, but they advised me to look at some other houses to help me decide, so I have booked a couple more viewings for comparison. Not sure how this will help to be honest, as until a survey is done I don't think you can really compare. It is such a difficult process!

AdrianC

The only surveys or reports you NEED to pay for are those which your lender requires you to obtain. Anything else is entirely for your own information or peace of mind.

amateur_house

AdrianC wrote: »

The only surveys or reports you NEED to pay for are those which your lender requires you to obtain. Anything else is entirely for your own information or peace of mind.

The lender is keeping a retention of the mortgage back until the work is done, though there is always the option of taking a smaller mortgage and telling them to keep the retention I suppose. I am viewing a few more houses this week though, so hopefully these will need less work. I did ask the agent if the house was damp due to the smell but was assured that it just needed some windows opening. I feel extremely naive now in hindsight.

amateur_house

Mary83 wrote: »

My home buyer report was £330, we have had a few quotes now and to be fair all seem reasonable

Just wondered if you had an update, did you negotiate on the price to reflect the work needed?

I have had a few quotes for the damp report, and these are coming in at around £200-£290, so hardly any less than I paid for the homebuyer report. The estate agent said I shouldn't bother with this and instead get builders in to quote for the work. I assume this can take the place of a report for the lender, but I have heard stories of people being told they need expensive work doing that isn't actually necessary. Starting to think I should just find another house, it would be simpler