Reduce offer after survey

Crashy_Time

sc32365 said:

Hi,
So we have had an offer accepted on a house, this was at 330 which was 5k over asking. The survey has thrown up quite a few issues the main being the roof, in total repairs are about 12k, roughly 3-4k are general things which were visible, the roof was not which is the other 8-9k. Essentially it has been very poorly maintained and needs a good bit of work. 

Would I be unreasonable in asking for an 8k reduction? I don't want to lose the property but really can't afford to take on all the repairs. 

If you can`t afford the repairs you definitely need to be seeking a decent price reduction IMO.

MobileSaver

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

 especially if mortgage rates are moving higher.

I asked you this last week but you didn't answer... do you think mortgage rates will move significantly higher any time this year?

there is no one on the planet who can definitely predict future bond rates IMO, so why would you expect me to be able to?

I agree, which is why it is so odd that you keep saying things like "of course when mortgage rates rise and new borrowers can`t secure such low rates" as though you can predict future rates and know when it will happen. It's good to hear you confirm that you have absolutely no idea when or if that might happen.

Just for fun, let's say mortgage rates might rise in ten years' time, would that be a good reason not to buy a home with a mortgage today?

Crashy_Time said:

Why do you keep saying that the effects of rising bond yields on the property market can be controlled by mortgage debt holders fixing their re-payment rate when this is obviously untrue?

I am pretty sure I have never said that, can you provide a link to where you think I have?

lookstraightahead

Crashy_Time said:

sc32365 said:

Hi,
So we have had an offer accepted on a house, this was at 330 which was 5k over asking. The survey has thrown up quite a few issues the main being the roof, in total repairs are about 12k, roughly 3-4k are general things which were visible, the roof was not which is the other 8-9k. Essentially it has been very poorly maintained and needs a good bit of work. 

Would I be unreasonable in asking for an 8k reduction? I don't want to lose the property but really can't afford to take on all the repairs. 

If you can`t afford the repairs you definitely need to be seeking a decent price reduction IMO.

Or a different property where there is no chance of the roof leaking ever ever. 

StandingInTheSun

lookstraightahead said:

Crashy_Time said:

sc32365 said:

Hi,
So we have had an offer accepted on a house, this was at 330 which was 5k over asking. The survey has thrown up quite a few issues the main being the roof, in total repairs are about 12k, roughly 3-4k are general things which were visible, the roof was not which is the other 8-9k. Essentially it has been very poorly maintained and needs a good bit of work. 

Would I be unreasonable in asking for an 8k reduction? I don't want to lose the property but really can't afford to take on all the repairs. 

If you can`t afford the repairs you definitely need to be seeking a decent price reduction IMO.

Or a different property where there is no chance of the roof leaking ever ever. 

Bit of a difference between what you're suggesting and the OP's roof which needs completely replaced.

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

 especially if mortgage rates are moving higher.

I asked you this last week but you didn't answer... do you think mortgage rates will move significantly higher any time this year?

there is no one on the planet who can definitely predict future bond rates IMO, so why would you expect me to be able to?

I agree, which is why it is so odd that you keep saying things like "of course when mortgage rates rise and new borrowers can`t secure such low rates" as though you can predict future rates and know when it will happen. It's good to hear you confirm that you have absolutely no idea when or if that might happen.

Just for fun, let's say mortgage rates might rise in ten years' time, would that be a good reason not to buy a home with a mortgage today?

Crashy_Time said:

Why do you keep saying that the effects of rising bond yields on the property market can be controlled by mortgage debt holders fixing their re-payment rate when this is obviously untrue?

I am pretty sure I have never said that, can you provide a link to where you think I have?

1) Mortgage rates are already rising.
2) You said that mortgage debt holders can control their monthly payments, I said that it depends on their financial health and that this won`t stop the value of their home falling.
Maybe you think that the UK is special, outside the norms of the global credit/bond markets, somehow protected?
https://www.bankrate.com/mortgages/understanding-rising-rates/

MobileSaver

Crashy_Time said:

1) Mortgage rates are already rising.

OK, when did mortgage rates start rising and by much have house prices dropped since then?

Crashy_Time said:

2) You said that mortgage debt holders can control their monthly payments, I said that it depends on their financial health and that this won`t stop the value of their home falling.

Yes, I said mortgage debt holders can control their monthly payments - this is true.

Yes, you said it depends on their financial health - this is also true.

Your last point is just gibberish. Of course whether someone is on a fixed-rate or a SVR mortgage won`t stop the value of their home falling but neither will it stop the value of their home rising; if you have any verifiable evidence that property values change depending on whether the home-owner is on a fixed-rate or a SVR then I'd love to see it...

saajan_12

There's two key questions
1) are the works urgent - if not, then some maintenance is normal, and wouldn't affect the value. 
2) are the works priced in - urgent works should certainly affect the value compared to a perfect property. But that doesn't mean the asking price / offer were based on a perfect property. 

So the best course tends to be asking for reductions for issues that aren't visible, and going from there. Note it is always a negotiation. 

Crashy_Time

MobileSaver said:

Crashy_Time said:

1) Mortgage rates are already rising.

OK, when did mortgage rates start rising and by much have house prices dropped since then?

Crashy_Time said:

2) You said that mortgage debt holders can control their monthly payments, I said that it depends on their financial health and that this won`t stop the value of their home falling.

Yes, I said mortgage debt holders can control their monthly payments - this is true.

Yes, you said it depends on their financial health - this is also true.

Your last point is just gibberish. Of course whether someone is on a fixed-rate or a SVR mortgage won`t stop the value of their home falling but neither will it stop the value of their home rising; if you have any verifiable evidence that property values change depending on whether the home-owner is on a fixed-rate or a SVR then I'd love to see it...

? I specifically said that property values depend on the rates that potential buyers can get. How far someone with mortgage debt gets to control their monthly payments is at the discretion of the bank (and the credit market) the most favourable deals are for the most credit worthy, not people who can`t afford stamp duty? Or can you post up some deals that contradict this?

Crashy_Time

saajan_12 said:

There's two key questions
1) are the works urgent - if not, then some maintenance is normal, and wouldn't affect the value. 
2) are the works priced in - urgent works should certainly affect the value compared to a perfect property. But that doesn't mean the asking price / offer were based on a perfect property. 

So the best course tends to be asking for reductions for issues that aren't visible, and going from there. Note it is always a negotiation. 

Good advice.

sc32365

Just an update

The works were urgent yes and I sent the parts from the survey, the quotes and a polite email asking for a reduction and reasons why. 

The sellers were unaware of the roof condition so it was not factored into the price and agreed a reduction  of 5k from the 8k that I asked. 

So I'm pretty glad I did ask and all parties were very reasonable.