House purchase - Bad Survey Results?

edward2113

Hi everyone,
We are in the process of purchasing a 1930s house in the South East, however since the process started, we have gathered new information on the house which makes us wonder whether we aren't overpaying. Apart from the COVID-19 situation which is a whole other can of worms, we now know:

1) The owners have purchased the house in 2017 and haven't done anything to it since, apart from a bathroom renovation. They are now selling it to us for 20% more than they've paid for it. We are wondering whether this isn't a bit too steep of an increase for 3 years?

2) The Survey came out with quite a lot of issues which we weren't expecting, like:
- Sag in roof structure, felt lining at the eaves needs to be replaced
- Differential movement between original house and the (very old) extension
- Electrical System is hazardous, hasn't been touched since before 2000
- Condensation is an issue in the house
- Drainage smell from the kitchen taps
- No fire alarm, no carbon monoxide detectors, gas fireplace vent is blocked and is hazardous
- Water supply pipe needs to be changed

We are FTB so unsure whether these issues are something to be expected from an old house or if this is an especially badly maintained one. Also, the 20% price difference worries us as well. With that said, the house is in a very desirable area and most of the houses around it haven't been sold in the past 10 years and have been renovated/extended. What would you do in our situation?

numbercruncher8

What the owners paid a few years ago is irrelevant.
I mean, if you think 10% is a fair appreciation, if they overpaid badly for it a few years ago, you would think you have a great deal but in actual fact you would be overpaying as well.
Comparing to similar properties for sale is a better way.
The first few issues sound bad for a FTB, unless this is some kind of unique property that you badly want surely there will be similar nearby without these issues.

Comms69

None of that is unusual for a 1930s house. 

RelievedSheff

There is nothing on that list that would put me off the house. It all sounds pretty standard stuff for a 1930's house.

Alarms are easy enough to fit yourself, unblocking the gas fire vent is not a big job, etc. 

What the vendor paid for the property a few years ago is really irrelevant. It is what the house is worth now that matters. Have you checked to see what recent property sales there have been in the area?

Crashy_Time

numbercruncher8 said:

What the owners paid a few years ago is irrelevant.
I mean, if you think 10% is a fair appreciation, if they overpaid badly for it a few years ago, you would think you have a great deal but in actual fact you would be overpaying as well.
Comparing to similar properties for sale is a better way.
The first few issues sound bad for a FTB, unless this is some kind of unique property that you badly want surely there will be similar nearby without these issues.

Correct, the outlook for the economy has deteriorated massively since then, the OP is right to be cautious IMO.

edward2113

Thank you for the input - it's reassuring that these are "regular" issues for a house like this and it absolutely makes sense what you're saying about the price. To be honest, there aren't many houses that are on sale in the area and because of this it's a bit difficult to gauge, however compared to the few available it can be said that it's slightly overpriced.

RelievedSheff

edward2113 said:

Thank you for the input - it's reassuring that these are "regular" issues for a house like this and it absolutely makes sense what you're saying about the price. To be honest, there aren't many houses that are on sale in the area and because of this it's a bit difficult to gauge, however compared to the few available it can be said that it's slightly overpriced.

Look at sold prices not asking prices.

jonnygee2

however compared to the few available it can be said that it's slightly overpriced.

Ideally you would have had this realisation before you put an offer in and had a survey.
Still, you are free to change your offer. Without seeing the actual house it's pretty much impossible for someone here to tell you if you are overpaying or not.

AdrianC

edward2113 said:

1) The owners have purchased the house in 2017 and haven't done anything to it since, apart from a bathroom renovation. They are now selling it to us for 20% more than they've paid for it. We are wondering whether this isn't a bit too steep of an increase for 3 years?

Irrelevant. It's clearly a fair price in the current market, else you wouldn't have placed an offer, right?

2) The Survey came out with quite a lot of issues which we weren't expecting, like:
- Sag in roof structure, felt lining at the eaves needs to be replaced
- Differential movement between original house and the (very old) extension
- Electrical System is hazardous, hasn't been touched since before 2000
- Condensation is an issue in the house
- Drainage smell from the kitchen taps
- No fire alarm, no carbon monoxide detectors, gas fireplace vent is blocked and is hazardous
- Water supply pipe needs to be changed

What is the EXACT wording on the surveyor's report? What specialist structural and electrical reports have you had done? Most of that looks like a scared mis-reading of generic backside-covering, tbh.

bob_the_dinosaur

OK, so first of all, regarding the price increase.  If its a very desireable location then prices will rise very sharply.  Price increases can vary by location and sometimes even by street.  
With regards to the electrics- you need to know when the wiring was done in much more detail than that.  Done before 2000 in the politest terms tells you very little that is useful.