Vendor not being reasonable and won’t reduce price

quocvo

unforeseen said:

Anthrax? How did your surveyor dream that one up? 

The roof lining was made up of animal hair.  Horse I believe.  If installed prior to a certain time or using an unregulated product, there was a period where such products had anthrax.  

quocvo

Splatfoot said:

I would go for it at 505k. Sometimes what surveyors quote as costs for work, are way way over the top. We had a survey done on the house we are selling and the surveyor noted it needed repointing. At a cost of around 4k. Our buyers pulled out as we wouldn't reduce any further. We then had the repointing done during the time it was remarketed (5 days!) at a cost of under £500. The local tradesman said there is no way the whole house needed doing. We are under offer again (at more than our first buyers offered) and hopefully due to exchange in a week or so. Woodwork treatment is not hugely expensive either, I've had that done in the past. 

Thank you for sharing your experience.   I am definitely on the fence.  I have moments of just going with it abs moments of saying sod it and pulling out.  

There is the £12k roof work on top and structural repairs.  The £12k quote was from a contract the vendor himself arranged!  So it might even be an underestimate.  

I totally see your point though, hence my dilemma. My wife really loves the house so don’t want to walk away because of my unrealistic “principles”. 

quocvo

Sistergold said:

Many times vendors are not prepared to reduce their price because they believe that their house in its current condition is worth what they have been told its worth. The only way for them to realise it’s not worth that is when people walk away from the house. The likely reality is that the works you are talking about will cost more than this £25k. So put aside the principle you are working on and just look at what the house is worth for you? How likely and how easy it will be to get similar or even better house at a price you can afford. When I got my house it was in a bad state. When I started the renovations I found it was in even worse state than I thought. When I viewed it the house was exactly what I wanted and I was tired of looking and I did not want to lose it. I asked the lady what offer would make her happy and she said her figure. I agreed and we shook hands. The house was already at a high asking price, what she wanted was even higher. Sometimes one should not really worry about paying a little bit more or lose a bit for the right house. For a house you will live in for a long time then will you walk away for  £6k? in this case you have already paid lots for surveys etc. I think if you like the house you should not walk away because of the 6k. What could potentially make you walk away could be the problems with the house as they could likely be more costly. If you can afford the costs of renovation if they should cost upwards of 35k then just swallow your pride and buy. If you are buying mainly for how much the house will cost and whether you will recover all your money and make a profit then you might want to wait for a different house. For the right house in which you intend to live for a long time then the feeling of being in the right house is priceless and a bit of loss financially is acceptable. 

Thank you this reply.  It has really helped me to think about this from a other angle.  You are totally right about potential costs.  My surveyor said the roof alone at worst case scenario is upward of £30k to resolve.  The vendor’s builder and roofer has quoted £12k.  

I will try to leave my principles aside now and look at it how you have suggested.  I’ve confined in others who I think have tried to expressed similar thoughts but not put it as eloquently as you have. 

quocvo

dramaticat said:

You have no control over whether a vendor will accept your offer or their thought processes around this, so you need to put your feelings about it to one side.

You have three options:

1. Agree to pay £505k.

2. Leave your offer of £499k on the table but start looking for other properties.

3. Walk away from this house and look for something else.

You need to make the decision based on whether this property represents good value compared to other things on the market, even with the amount of work required, and/or whether you are likely to find something else that will suit you in terms of location and the accommodation space offered. It may be worth it to you to persevere with this house if you will struggle to find something else that will suit you as well.

Only you can answer these questions, but you need to approach them rationally without emotions getting in the way.

And if the house really does have suspected anthrax, I’d be counting my lucky stars I was still alive to be able to post about it on here. I imagine you mean asbestos in artex? 😀

I agree; there is the third option.  

It was anthrax potential. Sample was sent off to a lab in London.  

There is also confirmed asbestos in garage but that isn’t a concern for us.  If we intend to do any work there in future, we will get specialists in the remove.  

perbinder

I would walk away and have in previous properties when the buyers hold out when there is overwhelming evidence. In a property earlier this year the vendor wanted 5k under asking price but survey said needed 30k. He refused. I noticed on land registry he eventually sold 20k under. It takes times and others to persuade sellers that you were right but by then you will have moved on and found a better house. We did. 

DayDreamerandGeneralWaster

It's really hard when you fall in love with a property. 
If l loved it and it was a forever home, l would still try to move forward with it. The roof might need doing in the time you are there anyway.

Another angle is to ask them if they are willing to compromise and get part of the work completed as part of agreeing on £505k. Obviously they would need to provide quotes and evidence of satisfactory work in this scenario. 

quocvo

perbinder said:

I would walk away and have in previous properties when the buyers hold out when there is overwhelming evidence. In a property earlier this year the vendor wanted 5k under asking price but survey said needed 30k. He refused. I noticed on land registry he eventually sold 20k under. It takes times and others to persuade sellers that you were right but by then you will have moved on and found a better house. We did. 

That’s an interesting point.  The vendor’s wife has been into the EA’s office saying she was going to work on her husband because she thinks he is being stubborn and should accept our offer.  Unfortunately, her efforts failed and he called back to confirm his stance has not changed.  

Only way to test who is right is to let the vendor remarket.

GDB2222

SpiderLegs said:

You are considering all the wrong questions.
The house is going to cost you ballpark £530k.

4K on due diligence costs is 0.75% of that.
6k price variance is 1.13%.

These are not the factors I would be fretting about. I would be considering -

Is the house worth 530k.
is 25k repair estimate reasonable.
what is my contingency if that increases after purchase.
how much effort and hassle Is involved.

This is the point! Should the OP pay effectively £530k for a house that the vendor's own estate agent No doubt  Optimistically appraised at £525k? That’s going to work out at least £530k, because building work never gets cheaper, plus the risk that more issues come to light once you start work. Plus, living through all that work, or paying for alternative accommodation until it’s completed. Plus the hassle. 

Personally, I’d just walk away for now. I’d withdraw my offer, but say I’m still interested. And see what happens. If the seller does get back, I’d be looking for a price that reflects current market value reduced by 100% of the cost of the work required. 

warby68

Its not really a principle, you just want your own way lol
Its a negotiation.
Others have said what aspects to concentrate on when you're deciding and they really are more important than £6k in isolation (which nets to £2k with your lost costs)
If you decide you do not wish to pay the current price, I would just add keep it friendly if its a house you still really like. Leave your offer there for a little bit. Explain the extra costs are significant to you so do feel its your current best offer and understand if vendor decides to try elsewhere. Point out you're a convenient and reliable buyer in all other ways (hopefully true) such as funds and flexible timing, Try and resist the temptation to go off in a bit of a huff stating unreasonable vendor. You never know what a bit more thinking time and you looking a bit less keen will achieve or what the agent will manage in terms of persuasion if they try to go for remarketing.

Alan2020

People ask on this forum why people buy a new property from the big housing companies. Perhaps if stuff like this bothers you so much and a trivial repair is such a big deal and affecting your sleep? Just buy an NHBC backed new build from a reputable builder.
 No point getting ill over the state of repairs of an old house, it might subside or rot. Very rarely but they do!