Sellers refusal to budge on price

dcouponzzzz

Hi there,

So I'm currently in the late stages of purchasing a property, advertised at 320k, offer accepted for 310k, lender valued at 310k, homebuyers survey valued at 305k. My question is regarding accepting outstanding maintenance work and the associated risk.

We've had contractors round to price up major concerns on the survey, listed as follows:

- Roof repairs: £2100 ridge and hip tiles, new flashing and pointing on the chimney stack.

- Damp: £500 for rising damp issues visible above ground. Extent of the issue under the floorboards unknown.

- Gutters and Fascia: £1000

- Front elevation brickwork (mortar): £2000 to have K-rend, experienced bricklayer family friend said this would resolve the mortar issue and we planned for rendering it anyways

- Windows are over 15 years old, mouldy seals but a 2 on the survey rather than a 3. £6000 quoted including front door.

Essentially there's £6k worth of work that needs doing (not counting the windows and front door) to bring it up to scratch, and the unknown in the extent of the damp. It's the house of our dreams, and we're prepared for a long drawn out process of repair and renovation.

My questions are, should we be concerned about absorbing these costs? Is the damp issue a potential deal breaker? Is it normal for the seller to refuse to budge on a SSTC offer when the homebuyers survey knocks 5k off?

On multiple occasions the sellers have threatened to put the property back on the market because of misunderstandings of the sales process their end, frustrated by the number of contractors needing access to the house etc.

Any advice, criticisms or reassurances are much appreciated, thank you.

HampshireH

They can absolutely act in their threat to put it back on the market and only sell for the price they command...

Whether they get another buyer is another thing.

I can only see 3600 of works as you say you planned to render anyway so you can exclude that.

They aren't going to budge on price by the sounds of it so it comes down to whether you are prepared to walk away or suck it up and cover the costs.

martinbuckley

I've walked away from a potential house purchase in the past when the survey threw up issues and undervalued it. It was the best £500 I ever spent. In fact, it cost me less because the vendor took her property off the market and bought the survey off me to see what needed doing!

What you must remember is that the survey is yours, not the sellers, and the contents of it are for your eyes only, unless of course you plan to give the seller or EA a free peek at it.

All they need to know/see is the surveyor's valuation of £305K. If they are smart, they'll realise that any other survey from any other prospective purchaser will probably come up with the same figure, or perhaps less.

davidmcn

So, survey says in its current condition it's worth £305k, and the sellers think it's worth £310K? Or to put it another way, £307.5k +/- 0.8%, which is hardly anything in valuation terms.

It's good to know what those items of work will cost, but you can't double-count things by deducting them from the valuation. Any reason to believe there is likely to be significant further damp costs?

eddddy

dcouponzzzz wrote: »

offer accepted for 310k, lender valued at 310k, homebuyers survey valued at 305k.

That's what you'd often expect.

The homebuyer surveyor is working for you, so he/she is 'doing you a favour' by valuing lowish.

i.e. You may be able to use his/her valuation as leverage to negotiate a lower price.

Similarly, your surveyor may be tending towards overstating the problems and work required, because that will also help you in your negotiations.


(Often, the 'unspoken deal' with surveyors is that you pay them £500 for a survey, and they will look for problems and write a report that tries to help you get, say, £2000 off the price.

If you are concerned about the report, it might be worth phoning the surveyor. They may give you a clearer picture over the phone.)

sillyhilly

eddddy wrote: »

(Often, the 'unspoken deal' with surveyors is that you pay them £500 for a survey, and they will look for problems and write a report that tries to help you get, say, £2000 off the price.

With the greatest respect intended, that is utter rubbish.

System

davidmcn wrote: »

So, survey says in its current condition it's worth £305k, and the sellers think it's worth £310K? Or to put it another way, £307.5k +/- 0.8%, which is hardly anything in valuation terms.

It's good to know what those items of work will cost, but you can't double-count things by deducting them from the valuation. Any reason to believe there is likely to be significant further damp costs?

dcouponzzzz wrote: »

advertised at 320k, offer accepted for 310k, lender valued at 310k, homebuyers survey valued at 305k.

But the lenders valuation came in at the offer price of £310 so why should the vendor give a discount.

ThePants999

Simonr66 wrote: »

But the lenders valuation came in at the offer price of £310 so why should the vendor give a discount.

Because the lender's valuation isn't based on the actual condition of the property, at least beyond what can be seen from a cursory glance from the street

theartfullodger

Seller is able to increase price if they wish. You, by your actions, have announced that the price is flexible:.

foxy-stoat

dcouponzzzz wrote: »

It's the house of our dreams

Just because that that, buy it for £310,00 and do all the work you listed and be happy.

The windows were moldy and 15 years old when you offered the £310,000 so not relevant in your opening post, I assume it has a working front door already?

If I was the vendor I would counter any deduction in price at this stage by stating the accepted offer takes into account any work that may or may not be required.

If your numbers are that tight and your lender puts a retention on the mortgage, then maybe rethink it and walk away, but houses of dreams are few a far between.

steampowered

The fact that the homebuyers property has valued at £305k is not a good reason for changing the price. Property valuation is not an exact science.

None of work that needs doing sounds major to me. As this is an older property, you would expect the survey to throw up bits and pieces which need doing.

Presumably you would have noticed things like the windows being a bit old when you viewed the property. I think most sellers would hold firm.

If this is your "dream property", £5k is not a lot of money in the grand scheme of things. To put it another way its 1.6% of the price.