Survey says 20k repair, estate agent says it's only 2k

Yellow_mango

ladyellyria wrote: »

We don't have a mortgage valuation to reference as we are trying to buy with cash. With all of our savings, in fact, hence the extra overthinking and caution...

Ah. In which case it really does come down to how much you are willing to pay, taking all things into account.

Being a cash buyer gives you an advantage in one sense, but also makes you a potential push-over with no third party ceiling on the amount you can pay.

Are you planning to stay there forever? Or is re-selling a potential factor? It may be worth paying for another valuation, especially since you didn't pay for this one. And making it very clear to the surveyor that you need a value in it's current condition?

ladyellyria

Yellow_mango wrote: »

Ah. In which case it really does come down to how much you are willing to pay, taking all things into account.

Being a cash buyer gives you an advantage in one sense, but also makes you a potential push-over with no third party ceiling on the amount you can pay.

Are you planning to stay there forever? Or is re-selling a potential factor? It may be worth paying for another valuation, especially since you didn't pay for this one. And making it very clear to the surveyor that you need a value in it's current condition?

Re-selling is definitely a potential factor, and with that our biggest worry is actually the valuation related to the number of bedrooms. The surveyor told us the roof needs work -- but I think it's straight forward work, rip out the old one, put in new one. No major structural work needed (knock on wood) from what he can see. I think that's why he didn't say it's in a poor condition or anything like that, though it doesn't mean the repairs isn't expensive!

But the vendor might point out the "good condition with no significant problems" bit and say, see, proof that roof doesn't need a lot of work, therefore reduction unreasonable. But also, if in good condition this house is still only valued at 184k, what does that mean?? I'm not sure how to approach this negotiation, and I don't want to be led down the wrong path.

Yellow_mango

AdrianC wrote: »

Nor are they under any obligation to agree to a reduction in the accepted offer.

If you want them to consider that, then the very least you can do is back it up by providing the information on which you're basing the reduced offer.

At the end of the day, you can base your offer on anything you want, or nothing at all, and give them any or no information as to how you came to that amount. And of course they are also entitled to accept or reject it for any or no reason, and give you any or no reason as to how they came to that decision.

I guess you could imagine they might be more inclined to accept if they think that any other buyer would identify the same issues. But if they really think it is worth more, then they may think they can try the same approach with another buyer.

Are there many other buyers at this price?

ladyellyria

Yellow_mango wrote: »

At the end of the day, you can base your offer on anything you want, or nothing at all, and give them any or no information as to how you came to that amount. And of course they are also entitled to accept or reject it for any or no reason, and give you any or no reason as to how they came to that decision.

I guess you could imagine they might be more inclined to accept if they think that any other buyer would identify the same issues. But if they really think it is worth more, then they may think they can try the same approach with another buyer.

Are there many other buyers at this price?

They said there was one girl, presumably a FTB, who offered 195k straight in (the EA even sounded they thought this was a high offer). But that fell through because the girl couldn't get as much money as she thought she could from the mortgage company. I don't know if that girl did a survey and mortgage valuation, or if't that's why it fell through, but EAs insist it's because she couldn't borrow as much.

lookstraightahead

You're ruminating and going round in circles. What's your gut instinct? Without taking into account all the bits that are just thoughts in your head - just based on the facts?

Mr.Generous

You are taking FAR TOO MUCH notice of stuff the estate agent says, his off the cuff remarks to try and get the sale through are based on nothing.

You don't need to have any answers to his comments.

You don't need to care what the EA or the vendor think to some extent.

Make an offer based upon the value of the property, the cost of necessary repair work, the likely future value and how much you want the property.

Personally I'd be coming in with an offer more like £170k, it would get rejected and I'd keep looking. They might come back with a counter offer, but you've had a close escape thanks to the survey. The vendor and the EA were happy to try and get you to overpay. They are not on your side.

lookstraightahead

Excellent post Mr G

kirtondm

They said they value it at 173-184k

You might actually find it easier as the EA will then go back to the client and said look it has been valued at 173-184 and they are offering 185 you will have the same problem with anyone who needs a mortage.

trex227

anfieldred wrote: »

Ours is a 1930s one, the survey didn't reveal much, but nearly everything we've gone to get done (plastering, decorating, flooring etc.) has uncovered more problems. If you're confident you can get it done , and have additional funds to repair additional issues found, and it's not going to bring you down finding more problems, then go for it.

The estate agent can't say for definite that work is 2k - go with the survey opinion instead.

Exactly this- we also bought a 1930s semi 6 years ago and the number of "bodge jobs" we've come across when getting things done is unbelievable. My personal favourite is the condensate pipe for the boiler (that was 2 years old when we moved in) hadn't been installed at enough of an angle so during one spell of freezing weather froze the condensate, backing it up into the boiler resulting in a completely destroyed 3 year old boiler.


The beautiful slate floor in the kitchen hadn't been sealed so the grease, water and paint the previous owner has splashed on it wouldn't come out no matter how much cleaning (including with professional chemical cleaning!).


I could go on and on but the way we look at it is if we've had the work done ourselves we know the standard its been done to. Over the years we've had a new kitchen and bathrooms so we know everything is done right in those areas. I think with any house theres always potential for things to need sorting out (having known a number of people who have worked on new build estates I wouldn't say new properties are excluded but at least you get a guarantee!) and so its just part of home ownership.



From what you have said it does seem you are overpaying though and sunlight coming through the roof? :eek: That would be enough to put me off. And I'm not sure £2k would cover sorting out the roof, surely scaffolding (assuming it would be needed) is going to be at least half of that cost.


Oh and depending on when the property was built it could have been built as a 3 bed. Ours was one of the last built in this area without an internal toilet so the 3 rooms upstairs were all originally bedrooms and there was an outside outhouse. In our house the third bedroom became the bathroom and the outhouse became a utility room. However in our neighbours house the walls were moved around so they still have 3 bedrooms and a bathroom upstairs. I know I prefer having a large master with en suite, decent sized second bedroom and good sized bathroom (that we've had a freestanding bath installed in) than 3 small bedrooms and a tiny bathroom.

ladyellyria

trex227 wrote: »

Oh and depending on when the property was built it could have been built as a 3 bed. Ours was one of the last built in this area without an internal toilet so the 3 rooms upstairs were all originally bedrooms and there was an outside outhouse. In our house the third bedroom became the bathroom and the outhouse became a utility room. However in our neighbours house the walls were moved around so they still have 3 bedrooms and a bathroom upstairs. I know I prefer having a large master with en suite, decent sized second bedroom and good sized bathroom (that we've had a freestanding bath installed in) than 3 small bedrooms and a tiny bathroom.

This is really interesting -- does this configuration affect valuation on your house compared to your neighbour's, say, beacuse yours is a 2 bed, while theirs is a 3 bed? In reality I'd prefer 2 good sized bedrooms over 3 small bedrooms, but I worry if that's going to affect the valuation later on.