Homebuyer Report Valuation A Lot Lower Than Offer

tombymse

We are going to spend next week getting quotes for all the defects mentioned in the report as we have no idea how much these repairs are going to cost. 
There are quite a lot of 3s on the report, here are the main ones:

numbercruncher8

Well, the repairs aren't going to pay for themselves, so even if you get a reduction in price you will have to pay for them. 
The alternative is asking the seller to fix it, but they don't have to agree, and they may also take shortcuts on that.

I don't think they will have to tell anyone else unless they specifically ask, which may be unlikely, after all I presume you didn't ask those questions. But anyone having a survey will almost certainly receive the same as you.

I'm sure you'll get some advice off the bat, but without knowing what £27k is in the context of the house value I don't think anyone can say for sure.

DayDreamerandGeneralWaster

You will need to renegotiate your offer to at least the amount in the survey. Otherwise this is not the house for you.

Moneyminded

I had this with a previous house. We paid for a full building survey and the valuation came back at £15- £20K less than the agreed sale price. We shared the full report with the estate agent and asked to renegotiate the price. The estate agent urged the vendor to accept our new lower offer as we were being fair and as we had disclosed the full report. 
What you haven't mentioned is what the mortgage (assuming you need one) valuation came back as? The homebuyers report is for you but the mortgage valuation is to protect the interests of the mortgage lender. If this is also lower than the price you agreed you would need to make up the difference yourselves or reduce your LTV. 
Good luck with whatever you choose to do. 

Thrugelmir

Is this the valuation that has gone to your mortgage lender? 

tombymse

numbercruncher8 said:

I don't think they will have to tell anyone else unless they specifically ask, which may be unlikely, after all I presume you didn't ask those questions. But anyone having a survey will almost certainly receive the same as you.

Just came across this which states the seller/estate agent should inform any potential buyers
 https://www.reallymoving.com/surveyors/faq/do-i-have-to-tell-buyers-about-a-failed-home-buyer#:~:text=If you were using a,mention what the survey identified. 

FinallyStoppedLurking

tombymse said:

We have already had our mortgage approved for the house and also already done the searches as we were hoping to move asap, so this has come as quite a big blow.
I believe the mortgage valuation was just desk based and they did not share their valuation, they either accept or decline. 
Do I need to notify the lender about the homebuyer report valuation? thanks

If you have your mortgage in place this is less of an issue.
Surveys tend to overstate issues and also the cost of repair. Are you sure the house wasn't priced to reflect the issues?

You need to decide which work is essential (and reduced the value of the house) and re-negotiate accordingly. I'd guess that at best you could hope for a £5k to £10k reduction. 

gab3x

tombymse said:

Sorry, just realised I didn't include the house value, £187k was our accepted offer, homebuyer valuation is £160k so nearly a 15% down valuation. 

I am so sorry about this. I can imagine how frustrating this might be. It's not just a psychological nightmare but also financially you now have spent money on survey, searches and legal. My survey just uncovered some unexpected fixes but the cost to put it right is below 1% of agreed price and we are still shocked so this is just really big.

I don't know if you will get your sellers to lower the price so substantially. My only advice to you is think with your wallet and head and not with your heart. Good luck.

Crashy_Time

Don`t overpay in this climate, do they have any other potential buyers lined up?