Post survey negotiations

loanranger_4

The survey on the house we're buying has highlighted some urgent repair work (new windows and asbestos ceilings replaced). I have the estimates for these and the total cost is going to be around £20k!!! I am using the best materials and government approved contractors. I had originally thought that the cost would be about half this. The house is liveable but when we come to sell we'll get stung with the same issues.

What do I do now? Send the estimates to the Estate Agent ( or my solicitor?) and ask for the full amount off ( I fear that the vendor may have a heart attack!), as I might do if I was in her situation!

We (of course) really like this property but would be happy with about 50% of this cost, otherwise we walk. Are we being reasonable? Is it usual to pull out at this stage? Has anyone negotiated such a large amount off?

Thanks

kamaran

I was in a similar situation once and got 7K off, this took a few days of negotiation and left the vendor in tears and furious with us.

Although she allowed us to proceed, 1 week later she had another offer of the original amount we offered (she put it back on the market without telling us!) and effectively 'gazumped' us. In the end we werent bitter because the renegotiated price was our absolute max offer and seeing all the work needed made us emotionally detached from the property.

It all depends how desperate the vendor is to move, if you show her the quotes she will be stupid to not renegotiate. How long was the property on the market? If she was waiting for some time for a buyer your chances are much better.

Good luck!

loanranger_4

Many Thanks kamaran. Your situation was very similar. Hopefully our outcome will not be the same !

The property was on the market a few days when the offer was accepted. For us the properties desirability has decreased a little since the survey..

The vendor has been made aware of the need for the work, just not the cost! Should I wait for a formal mortgage offer before negotiating (to strengthen my position) and offer to exchange in a few days.

Debt_Free_Chick

Is it possible that the price reflects the work that needs to be done?

kamaran

Well there are 2 ways of doing it.

1) Wait for your mortgage offer - this buys you time and puts the vendor further in the mindset their property has been sold, thus more dependant on you. However when you renegotiate, dont be suprised if it breaks your relationship significantly. You will also have to get a revised mortgage offer if you succesfully renegotiate - thus will take more time.

2) Revise your offer now - as your doing this straight away after the survey it will be less of a suprise to the vendor. It will also be a quicker process, because your not sitting around waiting for your mortgage offer.

As the property was only on the market for a few days the vendor is not likely to be desperate to renegotiate so tread carefully and good luck!

meanmachine_2

kamaran wrote:

As the property was only on the market for a few days the vendor is not likely to be desperate to renegotiate so tread carefully and good luck!

Yes possible, BUT....today, agents are being incredibly sneaky and taking properties off their books, only to put them back on as "new listings".

There's a chance this house has been hanging around, coming on and off the market for ages.

The only way to really know is to keep an eye on the local area for months to see what's happening and to allow you to spot "repeat offenders".

Poppy9

Did the original asking price reflect the amount of work that needed doing. Can you find out how much a refurbished house in the same area is going for. If its more I think the vendor may be justified in telling you the asking price reflects the amount of work required to bring it upto standard. Windows needing replacing would usually be obvious to sellers, estate agents and buyers. The vendor would have know that they had asbestos ceilings but did they tell that to the Estate Agent. Ask the EA if they did know I am sure it would have affected their asking price as its such major work. You might need to be a bit devious in asking the EA about their knowledge of the asbestos.

Good luck

dougk_2

Is the ceiling fully asbestos or just contain asbestos within the material (as many houses in the 60s & 70's did?). It is not necc. dangerous and indeed is often best left in place.

There are several ways forward.

If you are happy with the property you can try and negotiate a prce reduction although if the property hasn't been on the market long they will probably ignore the request.

You could ask the current owners to have the work carried out at their expense (again they are likely to say no)provided full guarntees are given by the companies involved.

You could pull out and look for something else (or at least threaten too)

You could just buy the house and not worry about the work needing doing for now.

No house is perfect and as other posters have said was the price of the property reflecting its condition. Also things like windows needing replacement are subjective. I.e. some people feel wooden single galzed windows need replacing with double glazing even if they are in good condition and serviceable - to others they are a "period" feature.

Whilst from what you have said it is going to cost £20k, you seem to have used the most expensive contractors - if on a budget how much could it be done for? Probably the half figure you were talking about.

No doubt in 10 years time other household substances will be classed as dangerous like asbestos.

Don't forget you will lose the money you have already spent on survey, searches etc. if you walk away.

loanranger_4

Many thanks for your responses.

I would say that the price to some extent reflects the state of the windows. They are the original steel windows for the 1920's house which are past their useful life. The surveyor report says that :

"the majority windows are seized, stuck and/or corroded should be replaced. The timber surrounds are rotten and require replacing".

Nevertheless we could leave these in place for the time being ( and leave the decorating for later).

The suprise was the asbestos cement (EA didn't know about it, vendor did not mention it). Also when the vendors bought it in the 1980's asbestos wasn't the issue that it has become now. This is about half the budget to replace.

We would like to proceed with the purchase, but not at the original agreed price. Would then a reasonable proposition be to ask for :
1. 50% reduction on the windows quote and 100% reduction on the asbestos quote and take it from there?
2. Ask for 100% of the asbestos discount (as suggested by the surveyor.)

For the estimates I had to go to reputable contractors for worst case scenario damage, I reckon the man with the van would be about 20-25% cheaper.

The surveyor agrees that the house is realistically priced i.e. it is within range for properties in that street. We have been looking for a few months, and are familiar with the area, so this is not a "repeat offender". (shame!)

I have to agree that there is no such thing as the perfect house. They all need something doing to them (even the immaculate ones)! Just didn't expect it to cost this much and it is budget that I simply don't have.

My concern is when I come to selling buyers they will also expect a discount for these repairs (unless the vendor/I take care of them and no new dangerous materials are identified in the meantime!).

Many Thanks

meanmachine_2

In my limited experience, asbestos is one of the negatives of buying houses from the 60s/70s. I wouldn't naturally expect such poisons to be in a 1920s property. This is a "shock" finding, in my book, and you shouldn't have to bear the costs of it.

dippy

Asbestos is indeed very nasty and not to be taken lightly. I can't think of any other common building material that even comes close. Better use reputable tradesmen than local cowboys. This is not an area to skimp on.

Have a look at http://www.hse.gov.uk/asbestos/