Advice on renegotiating price after survey and EICR

TravellingLight

Hi there!

I've no real experience of property price negotiation, so I'm asking to see if anyone can help.

I recently offered the full asking price of £95,000 on a flat and this has been accepted.

I had a "Homebuyer's Report" survey which stated: the flat had various minor defects and that the flat's electric heaters are very inefficient and may not have sufficient output to heat the living space.

The survey also stated that the flat's value in its current condition is £90,000, £5k under my offer price.

Cost of remedying minor defects: £800
Cost of upgrading electric heaters: £1500

I also had an EICR test (which the survey did recommend).This revealed that there are a number of C2 "Potentially Dangerous" issues that need to be fixed.

Cost of electric repairs: £1000

Is it reasonable for me to request a price reduction from the seller and by how much?

- Should I ask for a reduction of £5k, given the surveyor's valuation?
- Should I ask for a reduction based on the cost of works set out in the Homebuyer's Report and EICR test?
- Should I ask for no reduction but request that the vendor carry out some of the recommended works? (I'm thinking of the electric repairs)

I should add that I do not wish to lose the deal as there are not currently any similar properties in the area meeting my criteria right now. At the same time I don't want to be taken advantage of.

What would be the most reasonable position for me to take given that I don't want to lose the deal?

If in your opinion the best position for me not to ask for any reduction at all, just say so.

If I enter into price negotiations is it common practice that I name a price, the vendor names a price and we meet each other half way?

I'm thinking of sending the Homebuyer's survey and the EICR report to the vendor to justify what I'm saying. Presumably there's no problem with this.

Thank you in advance for your help.

G_M

Well trying to re-negotiate the price without sending the reports would simply be gazumping.

The best justification is the £90K valuation.

All properties (except brand new ones) have 'minor defects' though without knowing what they are it's hard to comment.

Upgrading the heaters is laughable. That is purely your choice to do if you wish. The sellers have presumaby been satisfied with the quality/output of the heaters - why should they pay for you to get better heaters?

As for the "C2 "Potentially Dangerous" electrical issues, much again depends what they are. If they are simply listed as such because they don't conform to current standards (but presumably conformed to the standards in force when they were installed), then no, a claim for price reduction would not be justified.

If whatever the defects are are genuinely dangerous, then yes. But the word 'potentially' makes me wonder - Surely either a defect is dangerous, or it is not.

Whether the seller will be open to negotiation probobly depends

a) how long he's been on the market
b) whether he's aready found somewhere to go
c) how desperate he is to move
d) whether he considers the valuation to be fair compard to other recent local sales
e) whether he thinks he'd easily find another buyer
f) whether he thinks you are bluffibg
etc

Hoploz

If you were continue at the higher price you would have to make up the shortfall in cash. Do you have this spare?

You would also need to ensure the price does not affect your mortgage. For example, if your mortgage offer is 90% of the value and this changes. It could affect which mortgage products you are eligible for.

Your seller is likely to be receptive to a reduction on the basis of the valuation result as this is not just random gazumping, it is an independent valuation, which if they dump you their next buyer may well fall foul of as well.

TravellingLight

G_M wrote: »

Well trying to re-negotiate the price without sending the reports would simply be gazumping.

The best justification is the £90K valuation.

All properties (except brand new ones) have 'minor defects' though without knowing what they are it's hard to comment.

Upgrading the heaters is laughable. That is purely your choice to do if you wish. The sellers have presumaby been satisfied with the quality/output of the heaters - why should they pay for you to get better heaters?

As for the "C2 "Potentially Dangerous" electrical issues, much again depends what they are. If they are simply listed as such because they don't conform to current standards (but presumably conformed to the standards in force when they were installed), then no, a claim for price reduction would not be justified.

If whatever the defects are are genuinely dangerous, then yes. But the word 'potentially' makes me wonder - Surely either a defect is dangerous, or it is not.

Whether the seller will be open to negotiation probobly depends

a) how long he's been on the market
b) whether he's aready found somewhere to go
c) how desperate he is to move
d) whether he considers the valuation to be fair compard to other recent local sales
e) whether he thinks he'd easily find another buyer
f) whether he thinks you are bluffibg
etc

Thanks for your clear, no nonsense answer.

I might send the survey to the vendor and see if he's prepared to reduce his price. I would be happy to meet him half way.

Presumably if he says no, I still have the option of proceeding at the original price.

TravellingLight

Hoploz wrote: »

If you were continue at the higher price you would have to make up the shortfall in cash. Do you have this spare?

You would also need to ensure the price does not affect your mortgage. For example, if your mortgage offer is 90% of the value and this changes. It could affect which mortgage products you are eligible for.

Your seller is likely to be receptive to a reduction on the basis of the valuation result as this is not just random gazumping, it is an independent valuation, which if they dump you their next buyer may well fall foul of as well.

I do have the money spare to continue at the higher price.

You make a good point that sellers would be aware that any future buyer would likely have their surveyor tell them that the property was overvalued by £5k. I was wondering how seriously sellers and estate agents take valuations. I've heard some say that surveys tend to undervalue because surveyors err on the side of caution.

I might send the seller the survey and see what his position is.

Thanks for your input.