Project Property: How to Protect Against Risks and Issues?

WeB

Hi All,

I recently offered on a property that is a bit of a project (and isn't currently mortgageable as it doesn't have a kitchen, or a working staircase although that might not be an issue). My offer was based on the fact that I would accept a reasonable amount of risk and I can't see any easy way of hedging against that. The EA immediately indicated that the offer probably wouldn't be enough.

While some of the bigger pieces of work that have been completed seem to have been done to a decent standard (e.g: rendering of all the outside walls), some of the work is visibly not as good (e.g: new windows and doors, where some don't open/close well or aren't finished. Or the 3 story staircase which is unfinished and looks dangerous.)

Then there is the work, that the current owner DIY'd, like the bathrooms and flooring (tiling) throughout the property, which isn't to my standard (e.g: the taps are leaking, the shower backsplashes are peeling off already, the floor tiles are not completely level,...).

There are some unknowns too, such as the underfloor heating system (different pressure on top and ground floor), or the insulation that was allegedly put in. I guess the heating system could be tested prior to me increasing my offer, but I know that most surveyors will just write down "couldn't inspect... because I had no access". In my experience they don't typically undertake anything invasive, like drilling holes to inspect things.

Is there anything I've missed that I could do to ease my mind? I thought about asking for a document asking for a seller's guarantee, which details out all items I have concerns about, which would stipulate that it is compliant with regs, in good working orders,... . But I don't know if that would be worth the paper it had been written on if something goes seriously wrong.

I love the property, but without feeling more at ease about things, I am reluctant to increase my offer. Any help appreciated.

davidmcn

WeB wrote: »

In my experience they don't typically undertake anything invasive, like drilling holes to inspect things.

But there's no reason in principle why you can't ask them to (provided the seller agrees). You're right in thinking that a guarantee by the seller would be fairly meaningless (and probably not forthcoming anyway). All you can really do is survey as best you can and budget for contingencies.

foxy-stoat

Just bang in your offer based on the risks you can see - if thats not enough for the vendor then walk away.

Doozergirl

foxy-stoat wrote: »

Just bang in your offer based on the risks you can see - if thats not enough for the vendor then walk away.

That's it. No one is going to offer a guarantee on an old house!

The ones you get on a new build aren't worth the paper they're written on.

lincroft1710

WeB wrote: »

some of the work is visibly not as good (e.g: new windows and doors, where some don't open/close well or aren't finished. Or the 3 story staircase which is unfinished and looks dangerous.)

Then there is the work, that the current owner DIY'd, like the bathrooms and flooring (tiling) throughout the property, which isn't to my standard (e.g: the taps are leaking, the shower backsplashes are peeling off already, the floor tiles are not completely level,...).

There are some unknowns too, such as the underfloor heating system (different pressure on top and ground floor), or the insulation that was allegedly put in.

I am reluctant to increase my offer. Any help appreciated.

If new windows and doors don't open or close well, it may be a simple matter of adjustment, if not.........

I would doubt that leaking taps, peeling splashbacks, uneven floors are up to anyone's "standard".

Possible malfunctioning underfloor heating system and non-compliant insulation just add further to the expected expense.

Personally not only would I not consider increasing my offer, I would be seriously considering withdrawing it! The property has the potential for a complete catalogue of disaster!

WeB

lincroft1710 wrote: »

Personally not only would I not consider increasing my offer, I would be seriously considering withdrawing it! The property has the potential for a complete catalogue of disaster!

I hear what you are saying, but the offer reflected all those concerns. The EA was making all the wrong noises and immediately asked if there was room to increase the offer. My reply was that I would only do that if there was another way to manage the risks. She didn't have an answer and neither did I, so I thought I'd ask here.

need_an_answer

so has your offer been put to the vendor...and what was the response?

have they given you an indication of what offer they would accept...if not ask?

You need to establish if your offer is way off the mark or whether there is negotiation.without knowing if there is a point at which you can negotiate its difficult for you to weigh up the risks or concerns you have.

At the moment if you have offered the top amount that you can comfortably afford and the vendor wants more then I would say to offer more would cause you concern and be too much of a risk.

If negotiations can take place and you are still comfortable with the figures then the risk and concerns become less.

Cut to the chase with the EA and vendor and ask what they are willing to accept....then go from there.

If its more than you are prepared to give..its time to walk away however much you love the property and its challenges

To some extent the only way to manage the risk is to only invest in it what you are comfortable with if that makes sense.

lincroft1710

I don't think you can manage the risks, there are no guarantees when house buying, a survey or appropriate specialists' reports will reveal some of the faults. You buy what is on offer, warts and all, basing your offer (as I think you are doing) on the worst case scenario.

A house like this is a risk, as it is a potential money pit, and only you can decide whether it is worth buying and at what price.