The house I'm buying has dropped 10k value

AGA

Hi,

I'm looking for advice please.
I'm a first time buyer, and have had my eye on an aelrea for a long time, 1st house we made offer on fell through as it went to a closing date.
Almost a year down the line, another one pops up, just round the corner, but in a well established sought after area, so we jumped at it.
We went to view the house, and at the time of viewing it was dark and there was no electricity (pay as you go meter) however, we knew the area and despite using torches on our phones, we made the offer and it got accepted.
So we gets to mortgage application, and the lender requests refresh on the home report (as original was done back in June) and with the time of year xmas and new year etc, its been a bit delayed, so our official move in date has been referred.
Now the home report has came back with a 10k drop in value, there has been 3 x additional no.2's added, which suggests moisture, vegetatian and staining where the old fireplace was, between chimney breasts, stacks etc. So we're looking at building work. Along with total rewire, and new bathroom.
Now my partner thinks we should find something else as the costs are coming from every angle and with a 2 year old son, we need something more 'move in condition'
My mortgage advisor has told me to renegotiate the price again, and my solicitor is also saying I should request the 10k off, and if that's rejected, he's also saying I'm better looking for something else.

We originally didn't see the property properly but based on what we saw and agreed the price along with everything else that was on an 'out of date' home report.
Has anyone ever gone through anything similar?
And should I take lawyers advice on sticking with 10k less or nothing?
And does anyone know the average cost of the building work, rewire and bathroom?
It was a repossessed house and was bought by a company, so essentially they're looking to make money from this, I'm just scared we lose it as the seller is very stubborn.

Thanks.

Davesnave

So this is a reposession in Scotland with a new Home Report which values it at £10k below offer?

In your position, I'd try for the £10k off, regardless of the 'stubbornness' of the vendors, who have a duty to achieve the best price possible, but surely no personal interest. They will know that the new Home Report sets out the current position and, I'd guess, that it could be used equally by others also to reduce the final price agreed.

As for the building work itself, a re-wire will be between about £3.5k and £5k depending on house size/complexity and a new basic bathroom would be similar. It's impossible to say what the damp issue would cost to sort out; it could be very little for something like high ground level/blocked vents, or much more if floor timbers have rotted. None of us can easily advise on that.

getmore4less

Can you get the work done living somewhere else?
How deep are your pockets if stuff crops up?

if you run out of money what will you do?

See if you can find out what the repo company paid for it.

davidmcn

AGA wrote: »

It was a repossessed house and was bought by a company

Are you sure about this (despite it not being on the market recently, the apparent lack of any refurbishment and the power being off), and that it's not currently being marketed by the lender who has repossessed?

In any event, if the seller's own home report has downvalued the property, it's difficult for them to argue that your offer shouldn't reflect that.

AdrianC

Davesnave wrote: »

So this is a reposession in Scotland with a new Home Report which values it at £10k below offer?

...and which the OP offered on after a quick once-round by torchlight in the pitch black...

elsien

Have you had a proper survey done yourselves to ascertain where the damp is coming from and identify any other issues you may have missed?

dawyldthing

I had similar, homebuyers report said I should pay £2500 less so I said I wouldn’t be paying any more than this so I didn’t.

I live in a 2 bed house and the retire cost £1800 I think it was, but this is the midlands. It’s probably a fair bit more in different parts of the country. I didn’t factor it into the house price as the electrics did function, but wanted it doing anyway.

Bathroom - if it was me I wouldn’t rush to do the bathroom unless it is absolutely falling apart. I’ve had the same bathroom, kitchen for the last 6 years. You know what - it still functions. Why waste money on it.

Rest of it - I’d get a builder round to ask. As I’ve seen before don’t get someone in with a vested interest at charging you full wack, get someone in that can advise what is wrong

Crashy_Time

After Brexit it might be 20k off? Hold fire just now and look at other properties.

AdrianC

Crashy_Time wrote: »

After Brexit it might be 20k off?

Or after a no-deal brexit, the OP might not be able to afford it.
Or after A50 is repealed, and the uncertainty put to bed, prices might rise.

Nobody knows...

Crashy_Time

AdrianC wrote: »

Or after a no-deal brexit, the OP might not be able to afford it.
Or after A50 is repealed, and the uncertainty put to bed, prices might rise.

Nobody knows...

That would just cause even more uncertainty and market volatility and is very unlikely to happen as MP`s would be voting to undermine their own political foundations. Prices won`t rise unless interest rates are cut again, and even then I think people realise that property is just a basic Ponzi lending scheme now anyway. If the lack of affordable property issue continues JC is likely to be PM, and I think that will be the end of the property bubble at that point anyway, so for that reason the Cons have everything to gain by just letting it all pop and blaming it on Brexit before JC gets hold of the steering wheel.

Crashy_Time

AGA wrote: »

Hi,

I'm looking for advice please.
I'm a first time buyer, and have had my eye on an aelrea for a long time, 1st house we made offer on fell through as it went to a closing date.
Almost a year down the line, another one pops up, just round the corner, but in a well established sought after area, so we jumped at it.
We went to view the house, and at the time of viewing it was dark and there was no electricity (pay as you go meter) however, we knew the area and despite using torches on our phones, we made the offer and it got accepted.
So we gets to mortgage application, and the lender requests refresh on the home report (as original was done back in June) and with the time of year xmas and new year etc, its been a bit delayed, so our official move in date has been referred.
Now the home report has came back with a 10k drop in value, there has been 3 x additional no.2's added, which suggests moisture, vegetatian and staining where the old fireplace was, between chimney breasts, stacks etc. So we're looking at building work. Along with total rewire, and new bathroom.
Now my partner thinks we should find something else as the costs are coming from every angle and with a 2 year old son, we need something more 'move in condition'
My mortgage advisor has told me to renegotiate the price again, and my solicitor is also saying I should request the 10k off, and if that's rejected, he's also saying I'm better looking for something else.

We originally didn't see the property properly but based on what we saw and agreed the price along with everything else that was on an 'out of date' home report.
Has anyone ever gone through anything similar?
And should I take lawyers advice on sticking with 10k less or nothing?
And does anyone know the average cost of the building work, rewire and bathroom?
It was a repossessed house and was bought by a company, so essentially they're looking to make money from this, I'm just scared we lose it as the seller is very stubborn.

Thanks.

10k is around the average price drop at the moment, but I would expect the drops to get steeper after Brexit.


https://www.rightmove.co.uk/news/house-price-index/