Property readvertised, even though SSTC.

M00nface

joanars said:

Homebuyers reports very often down value properties just to be on the safe side - our house was significantly down valued in the homebuyers report and we still proceeded with the purchase. We just spoke to the surveyor who said the property is in overall good condition and the price we are paying is very reasonable so long as we are prepared to tackle the areas that need improvement. For us, the most important question was if the BANK will agree to lend us the money, i.e. agreeing that the house is worth the original offer price - and they did. So the homebuyers report price is irrelevant.
I'm amazed that the seller actually accepted your reduced offer, that's a big price difference. We bought our house in 2019, and identical house to ours sold for £30K more only a couple of months ago this year. 

Our bank will no longer lend at our original offer, they will only now lend at the surveyors valuation. Also I have heard what you're saying by others, that surveyors will down value a property to be on the safe side, but we just feel it is a big risk, the only way we will know for sure is for professionals in the field to assess it and give us quotes. If we proceeded now and it turned out we needed 50k for repairs then were a bit stuck. 

blue_max_3

M00nface said:

Our bank will no longer lend at our original offer, they will only now lend at the surveyors valuation. Also I have heard what you're saying by others, that surveyors will down value a property to be on the safe side, but we just feel it is a big risk, the only way we will know for sure is for professionals in the field to assess it and give us quotes. If we proceeded now and it turned out we needed 50k for repairs then were a bit stuck. 

So surveyors are expecting a fall in values. And then buyers are going to look for discounts to match the lower valuations. Compelling evidence that its a buyers market.

lees80

blue_max_3 said:

M00nface said:

Our bank will no longer lend at our original offer, they will only now lend at the surveyors valuation. Also I have heard what you're saying by others, that surveyors will down value a property to be on the safe side, but we just feel it is a big risk, the only way we will know for sure is for professionals in the field to assess it and give us quotes. If we proceeded now and it turned out we needed 50k for repairs then were a bit stuck. 

So surveyors are expecting a fall in values. And then buyers are going to look for discounts to match the lower valuations. Compelling evidence that its a buyers market.

It's only a buyers market if the buyers can afford the property - and in this case it's looking increasingly likely that the OP is in over their heads. Especially with regards to the funds to carry out the work. 

OP - even if / when you have the estimates for the work, there is still the possibility of hiccups or jobs going over estimate once started. 

Semple

M00nface said:

oldbikebloke said:

robtam said:

Quite cheeky! I'd be annoyed and question why they made this decision? Especially with house prices due to fall. What's it listed as? Same price you paid?

not cheeky at all. They do not have a proceedable buyer, they have FTB who could very easily pull out or attempt a second re-negotiation when they get the shock of the repair quote and realise they cannot afford it.

the vendor needs a sale to complete - first to do so gets it 

As mentioned before, we wouldn't renegotiate the price. We are happy with the now agreed price. 

Also our EA isn't doing viewings and surveyors aren't coming to properties, the vendor still lives there. I'm not too sure how likely it would be for another to come along and proceed in this situation. 

But you're not happy with the agreed price though, are you! If you were then you'd have moved onto the next step.

So what happens when a few builders quote 40k to do all the work? That eats up the 27k reduction you've made, and leaves you needing to find another 13k? Obviously you'd go back to the vendor and renegotiate a further 13k off. The vendor already sees this and has decided they'd raher test the waters in case someone else comes along and will actually take it on at a similar price regardless of what needs doing.

By the sounds of things you're looking at the wrong types of properties. A serious doer-upper should only be bought by those who are either in the trades themselves, or are very competent at DIY and will be able to do the majority of work themselves. Otherwise it'll just end up costing you more than it would do to buy a house in what would be similar new condition.

M00nface

Semple said:

M00nface said:

oldbikebloke said:

robtam said:

Quite cheeky! I'd be annoyed and question why they made this decision? Especially with house prices due to fall. What's it listed as? Same price you paid?

not cheeky at all. They do not have a proceedable buyer, they have FTB who could very easily pull out or attempt a second re-negotiation when they get the shock of the repair quote and realise they cannot afford it.

the vendor needs a sale to complete - first to do so gets it 

As mentioned before, we wouldn't renegotiate the price. We are happy with the now agreed price. 

Also our EA isn't doing viewings and surveyors aren't coming to properties, the vendor still lives there. I'm not too sure how likely it would be for another to come along and proceed in this situation. 

But you're not happy with the agreed price though, are you! If you were then you'd have moved onto the next step.

So what happens when a few builders quote 40k to do all the work? That eats up the 27k reduction you've made, and leaves you needing to find another 13k? Obviously you'd go back to the vendor and renegotiate a further 13k off. The vendor already sees this and has decided they'd raher test the waters in case someone else comes along and will actually take it on at a similar price regardless of what needs doing.

By the sounds of things you're looking at the wrong types of properties. A serious doer-upper should only be bought by those who are either in the trades themselves, or are very competent at DIY and will be able to do the majority of work themselves. Otherwise it'll just end up costing you more than it would do to buy a house in what would be similar new condition.

The only way for us to know if the red flags on the report aren't a case of the surveyors just highlighting minor things to cover their bums or if the work is actually that bad is to get professionals in to assess it. We are happy with the reduced price, and we are willing to pay that plus money for work and have already made that clear to the vendor, it just depends on how much we can afford. It will either be too much or something we can afford. But there is no way for us to know for sure without a professional opinion. It is a big risk to take without knowing this. 

Semple

M00nface said:

The only way for us to know if the red flags on the report aren't a case of the surveyors just highlighting minor things to cover their bums or if the work is actually that bad is to get professionals in to assess it. We are happy with the reduced price, and we are willing to pay that plus money for work and have already made that clear to the vendor, it just depends on how much we can afford. It will either be too much or something we can afford. But there is no way for us to know for sure without a professional opinion. It is a big risk to take without knowing this. 

Unfortunately that's just one of those things when buying a house that needs stuff doing to it. You're doing the right thing from the buyers perspective - i.e. ensuring that the critical repairs aren't going to be more than you can afford. 

But at the same time the impression you've given the vendor is that there are a lot of works required here, and he's concerned that the repairs are likely to cost more than what you've negotiated it down to, and there's a risk that you walk away, or reduce the offer further. In this scenario it wouldn't be unfair for him to see if there is another buyer who would be willing to burden some of the repair costs and offer slightly more than what you've offered. 

M00nface

Semple said:

M00nface said:

The only way for us to know if the red flags on the report aren't a case of the surveyors just highlighting minor things to cover their bums or if the work is actually that bad is to get professionals in to assess it. We are happy with the reduced price, and we are willing to pay that plus money for work and have already made that clear to the vendor, it just depends on how much we can afford. It will either be too much or something we can afford. But there is no way for us to know for sure without a professional opinion. It is a big risk to take without knowing this. 

Unfortunately that's just one of those things when buying a house that needs stuff doing to it. You're doing the right thing from the buyers perspective - i.e. ensuring that the critical repairs aren't going to be more than you can afford. 

But at the same time the impression you've given the vendor is that there are a lot of works required here, and he's concerned that the repairs are likely to cost more than what you've negotiated it down to, and there's a risk that you walk away, or reduce the offer further. In this scenario it wouldn't be unfair for him to see if there is another buyer who would be willing to burden some of the repair costs and offer slightly more than what you've offered. 

Thankyou. I appreciate your comment and can definitely see it more from the sellers perspective.