Cash buyer wants to renegotiate accepted offer - what to do?

Help1234

Hello,

We listed our 1900 house for sale for offers over £200,000 after 5 estate agents valued it as such. In the space of 3 days we had in excess of 30 viewings, with further viewing requests. We had 10 offers, the highest offers were £220,000 (first-time buyer, 15% deposit, with more cash spare), £217,000 (first time buyer), £215,000 (first-time buyer), £215,000 (cash buyer).

We went for the £215,000 cash buyer (house sold and living with children while waiting to buy his final retirement home) and called a halt on the viewings after 3 days. He has now had a home buyers report completed. Please note we also had a home buyers report completed 4 years ago when we bought the property and it did not flag up any concerns. Although the surveyor has valued the property in its current form as £215,000, the buyer has requested to reduce the offer by £2000.

His message says "The report in itself doesn't paint too bad a picture however, the report does recommend further structural and damp surveys following surveyors observations. That being said, other Red issues raised (i.e., the boiler age (11 years) and condition [not sure what this is supposed to mean we only had a boiler service last week which reported it to be in good working order and no concerns], work required to be undertaken to the roof and chimney are my immediate concerns. I realise bot parties require a quick sale so I would be happy if the sellers would undertake the works required or alternatively reduce the house sale by £2000 so I could address the issues post sale".

The report states the following issues are Red:

Chimney stacks: A brick built stack is noted to the left hand side and this is tall so a risk in high winds and  should be monitored. This leans inwards and there is a minor bulge. It is recommended that a reputable builder inspects the stack at close hand for the stability  of the upper brickwork and the flashings to ensure fully water tight. Properly fix the flashings especially to the rear. Expect some possible re­building and realignment due to the leaning inwards.

 Roof coverings: Double pitched and covered in slate. Some general realignment is needed to the front and rear roof slopes. There is a very minor slipped clay tile to the front canopy to the middle section and this  should be re­fixed. There is a very minor chipped slate to the front slope right hand side middle section and left  side of the front apex feature to the upper section by the ridge. The valley gutters to the front should be checked at close hand as an overhaul has been  recommended which is fairly minor. There is some minor chipped slates to the rear slope upper middle section and general  lifting. Monitor the cement filleting to the right side of the front canopy as this will require a repair  and at the same time it should be ensured that all roof lines are fully watertight. There is some minor chipped slates to the side of the outrigger to the upper middle  section. The stability of the ridged tiles should also be checked at close hand as some of the  concrete bedding has come away. Obtain prices from a reputable roofer.

Roof structure: Where visible there is a damp proof membrane in place to act as a secondary barrier to  damp. Insulation appears to be borderline adequate at approximately 270 ­ 300mm thickness. There are insulation bars with a polystyrene type material and you should enquire in  respect of this in case there is a flammability risk. The top section of the party wall with the neighbour needs to be fully blocked to the top  section only in brick or block. This is for fire / insurance reasons. The gable wall should also be checked at close hand at the same time to ensure fully  blocked

Main walls: Solid brick external elevations. There is some general frost damaged brick faces to all elevations and especially the gable  wall to the upper section and across the middle section and also all lower brick courses  and repairs are needed. Expect ongoing repairs and maintenance in respect of brick faces  and pointing. There is some black staining to the upper gable and this will be release of gases due to  failed flues and flues must be tested when the services are tested. You should not use the  flues until this has been carried out. There is some general deflection to the front bay which rotates to the left and this is  historic as there is no obvious recent or current cracking to suggest ongoing and  progressive structural movement. Due to the age of the property and this issue a Drain Survey has been recommended. They should check the full system including gullies and  joints. A full CCTV survey is recommended. Refer this report back to the Surveyor for further comments. There is also general frost damaged brick faces to the rear two storey outrigger especially  to the lower rear elevation from the middle downwards and pitted to the top section and  again significant repairs are needed. There is some minor deep mortar joints to the gable wall by the gate to the upper gate  section. Careful patch pointing is needed.

Walls and partitions: Medium to high damp readings were noted to lower walls in the right side of the kitchen  door only. This is border line acceptable but a report is needed from a damp and timber  specialist. They should inspect all lower walls and floors. Also all internal timbers and roof  space in respect of any beetle infestation. This is isolated but it would be prudent to have a report carried out by a damp and timber  specialist. There is a minor missing decorative tile to the right side wall in the hallway as you enter.

Floor: The specialist should inspect all floors whilst attending the property. There is a bulge to the tiled floor in the hallway and this should be checked by the  specialist [these are original minton Victorian floor tiles]. In addition it is recommended a sulphate / chemical test is carried out as there  is a risk of a reaction and crowning. You can refer the damp report back to the Surveyor including the sulphate test.

 Heating: Take advice on the age, lifespan and efficiency of the Vaillant boiler. It is understood this was installed in approximately 2010 and should be tested by a  qualified contractor including flues and the gas fire.

Other: As noted due to the age of the property and the minor structural concern a Drain Survey  has been strongly recommended. Stain / improve boundary fences generally. There was minor pooling to the far rear path to the rear of the garden and improve drainage


Can anyone advise how we should proceed? Do you think a reduction of £2000 is fair? Should we negotiate £1000? We are concerned will the reductions end here? We aren't familiar with home buyers reports so what picture does this paint? If you were a buyer and received this report how would you proceed?

Racky_Roo

It'll depend on your circumstances as to whether you can risk the buyer pulling out but as it's valued at £215,000 then there's no reason to reduce the price.

london21

If only 2,000 they are Just trying their luck.

You had a lot of interests but they might push for further discounts just before exchange. 

Help1234

It would be reducing by £2000, so £213,000

user1977

I would hold your ground - doesn't really bode well for the rest of the transaction if they want to quibble over 0.9% of the price, especially when that isn't even backed up by their valuation. Might be different if you didn't have a selection of other chain-free buyers to fall back on.

hazyjo

I'd say no due to the considerable interest at the start.

Perhaps £500 as a goodwill gesture, but that would definitely be it.

Thrugelmir

Ring the EA and see if any of the other parties are still interested. 

eddddy

Help1234 said:

 We aren't familiar with home buyers reports so what picture does this paint? If you were a buyer and received this report how would you proceed?

I'm not sure that a rational buyer would walk away over £2k - but not all buyers are rational.

(Their lost survey fees, search fees and legal fees would probably be £1k+.)

It depends how you feel. You could say that you had other higher offers, including one for £220k - so you're not prepared to go below £215k.

Or you could offer a reduction of £1k - just to make the seller feel good about the transaction. (It often gives people a buzz if they feel that they've haggled and won something from it.)

If you're selling via an estate agent, just tell the estate agent your position, and let them deal with the seller.

canaldumidi

Nothing serious there that's not unsurprising in a 1900 house. Normal maintenance. Nothing is urgent though the survey gives the buyer a number of useful pointers for what to look out for in the future, what minor work might (or might not!) be needed shortly, and what improvements he might wish to consider.

That's generally what surveys are for - to let the buyer 'understand' the property they are buying.  NOT usually to highlight things to put the buyer off buying - yes that happens sometimes but not here, and NOT simply as a means/excuse to renegotiate price.

I wish more buyers understood this!

Tell the EA no renegotiation, and ask that the buyer re-affirm his willingness to proceed at agreed price within 2 days. Tell EA to contact the next best buyer in 3 days time unless you've heard back positively.

lookstraightahead

I'm all for vendors not taking the proverbial, but in this case I would say no to your buyer. How pedantic and mean.

Were you fair to them when they offered (didn't go to final offers etc?). 

Help1234

lookstraightahead said:

I'm all for vendors not taking the proverbial, but in this case I would say no to your buyer. How pedantic and mean.

Were you fair to them when they offered (didn't go to final offers etc?). 

We were completely fair. This was his first offer and we accepted it. We could have tried to make him go head-to-head with the higher first-time buyer offers but we didn't.