Price negotiation

pip10

FTB
House we’re buying didn’t go on the market.
EA said something like asking price was 155, vendor may go to 150, but at the lower end she doubted there could be any negotiation after the survey.
It’s competitive where we live, so after a period of frustration and unsuccessful offers, we chose to offer the asking price.

We will need to spend money on cosmetic refurbishment of the property and having looked further at sold prices of this property type in the area, I think we could have done with getting it close to 150. I know it’s not a huge difference, but just wary of how much we’ll be spending on it and the properties value reflecting this in the future. We’ve both been saving for awhile for this and just want to get a good deal.

Received our homebuyers report. Very few 3’s, electrics appears dated so recommends a test. There are a few 2’s though mainly relating to walls and windows:

Main walls – Anticipate wall tie replacement
Brickwork to be treated with waterproofer due to weathering/surface erosion
Visible brickwork pointing is wearing so raking out joints and repointing required
Edges of lintels should be treated with rust inhibitor + replacement of lintels should be budgeted for
Some isolated damp meter readings, walls should be physically separated with a vertical damp proof course.

Windows slightly dated/tired will require ongoing maintenance and replacing eventually
Signs of weathering and minor hairline splits within mastic/mortar seals to windows, recommends waterproof seals maintained

I’m considering asking for a slight reduction in price. Any thoughts or advice?

eddddy

pip10 wrote: »

I’m considering asking for a slight reduction in price. Any thoughts or advice?

I'd expect that the first question the EA will ask is "What has it been valued at by the mortgage lender?".

That valuation will be for the house in it's current condition, before any work is done.

KatieDee

If they're mostly 2's, none of the work required needs to be done immediately. Any house is going to have things highlighted on the survey which will need attention, but none of what you've mentioned sounds serious.

If you want to save a few thousand to put towards these improvements then put together your argument and make a lower offer - the vendors can either agree, counter offer or tell you where to shove your offer. Personally I wouldn't risk it over a few thousand, unless the work required was significant, needed doing immediately to avoid further issues and was likely to be expensive.

Having said that, you offered asking price and the EA did mention that a lower offer would remove the option of negotiation following the survey - you offered asking, so I imagine that means there is still some room?

Hutch100uk

My friend recently bought a house and the boiler was '2'. She had to completely replace it after 3 months.

pip10

Thank you.for replies, will consider what you've said. Yes KatieDee, I do think there might be a bit of room!

Albala

You could get further reports (a full electrical condition report by a qualified electrician for example) with costings. That would, at the very least, tell you *the minimum* of what you could be in for in costs if you buy, and would also give you something to bargain with if you wanted to. Especially as any other survey by any other buyer would be likely to come up with he things you mention. In particular, if the electrics are substandard, some mortgage lenders may make remedial work or even a full rewire a condition of mortgage.

ReadingTim

These are essentially the running costs associated with owning a property - if you tried to chip me on price by quoting any of that, I'd tell you do do one and go buy a new build. Similarly, I'm not going to take a hit on price and pay for your refurb either.

Obviously, you're not buying from me, but your vendors might think like me.... So, while there's no harm in asking, you might want to think how far you push the point if they respond like I did, especially if it's competitive where you are, and you've been disappointed before already...