revising offer after survey

Fidenex

Hi there

Thank you all for the insightful comments, it is helpful.

It seems some of the issues flagged are cosmetic (ie: cabinets, missing doors), which could be a stylistic thing. I note that the door was present in the old plans from what I've seen on Zoopla but the vendor removed it, so perhaps there could be an argument to replace that.

Extractor fan - seems there could be negotiation there depending on what other goods are included in fixtures and fittings, or perhaps request to repair it.

I've had a chance to speak with service people - the boiler is a system boiler, not a combi. So while it works, it has been flagged as being remedial (perhaps due to low pressure?). With the electrics - an electrician says the fuse box is outdated, out of regs, and would need replacing as well as rewiring, which is recommended - the estimate for the rewiring is around £5k. As it stands, the electrician says it would fail the EICR.  The electrician stated that a rewiring would involve a lot of work and the flat would need to be empty to do that - I wonder if there would be ancillary costs as well?

As mentioned, I hadn't seen there was a crack in the bathroom basin when I viewed it months ago so am unaware about that or if it is leaking. If it does, good to know it is not that costly to replace (likely couple hundred for parts and labour?)

I wonder if then  the surveyor valuation is taking a "worst-case scenario" of replacing things (without having taken stock of the electrics and boilers), and so wonder if a good strategy is to benchmark/negotiate to the surveyor's valuation or revise the offer based on the "necessary" costs - such as electrics, and a couple hundred quid to factor in the minor bits?

MaryNB

Fidenex said:

Hi there

Thank you all for the insightful comments, it is helpful.

It seems some of the issues flagged are cosmetic (ie: cabinets, missing doors), which could be a stylistic thing. I note that the door was present in the old plans from what I've seen on Zoopla but the vendor removed it, so perhaps there could be an argument to replace that. I disagree. It's not like a tenancy where they have to return a property as they found it. It doesn't massively alter how the property functions (since you previously thought it was just open plan I presume it's not like they've taken the bathroom door off). If you viewed something and offered on that basis and the seller later made significant changes you could argue for a reduction. But even then you can easily buy a new internal door for a lot less than £100.

Extractor fan - seems there could be negotiation there depending on what other goods are included in fixtures and fittings, or perhaps request to repair it. The cost of a new fan (about £20) and installation is a pittance compared to the cost of buying a house. Especially since you'll already have an electrician in to do the rewiring.

I've had a chance to speak with service people - the boiler is a system boiler, not a combi. So while it works, it has been flagged as being remedial (perhaps due to low pressure?). With the electrics - an electrician says the fuse box is outdated, out of regs, and would need replacing as well as rewiring, which is recommended - the estimate for the rewiring is around £5k. As it stands, the electrician says it would fail the EICR.  The electrician stated that a rewiring would involve a lot of work and the flat would need to be empty to do that - I wonder if there would be ancillary costs as well? Out of regs alone doesn't warrant replacement (like I said previously, regs update frequently but you don't need to replace everything everytime they do) but if an electrician has looked at it fair enough. Ask if that estimate includes plastering. 

As mentioned, I hadn't seen there was a crack in the bathroom basin when I viewed it months ago so am unaware about that or if it is leaking. If it does, good to know it is not that costly to replace (likely couple hundred for parts and labour?)

I wonder if then  the surveyor valuation is taking a "worst-case scenario" of replacing things (without having taken stock of the electrics and boilers), and so wonder if a good strategy is to benchmark/negotiate to the surveyor's valuation or revise the offer based on the "necessary" costs - such as electrics, and a couple hundred quid to factor in the minor bits?

See my comments above.

Fidenex

Thank you. These are useful comments.

I suppose my concern here really is that that accepted offer price was higher than the valuation (though lower than the asking), and, given the issues outlined above, if a good benchmark then for renegotiation is to the surveyor valuation.

I can appreciate that some of the issues flagged could be interpreted as cosmetic (such as missing living room door) and others are minor (repairing extractor fan) - I didn't notice any damage to the units or bathroom sink when I viewed the property and my offer was made, so that may be a change which has transpired since.  Yet others, such as the electrician noting and recommending a rewiring, seem more substantial.

With the boiler, I am uncertain if there would be room for negotiation here. It is a system boiler and functional. Yet, the gas safety check marked is as remedial and requiring attention. So, would negotiating price on this basis be reasonable? Quotes I've received for a new boiler are in the £4k range.

I've also now received word that the service charges have increased 20% for this year. I find this a fairly substantial increase and was not in line with what was stated to me before I offered and has come as a surprise. Would there be scope to incorporate that into a re-negotiation given this change occurred after the offer?

lookstraightahead

Op. It sounds to me that you aren't really happy with paying over valuation (which is fair enough - i would never do that). But now that you've agreed, I think you need to have a think about whether you're truly happy to buy, rather than trying to claw back some money.

my negotiation would have been about paying over, not the normal work that needs doing when you buy a house. 

If it doesn't rest easy, best to sort it sooner rather than later. 

If the walls were falling down, that might be a different story. 

As I've mentioned before, we bought an old house with everything in it is old. Things are still working a few months later which is a bonus to us 🤣. If we had negotiated on our price after the survey, the vendors would quite possibly need to be paying us to live here 🤣

propertyhunter

It's the same situation with the house I've had an offer accepted on. Nothing is up to current gas or electricity standards, but I accepted this knowing I'm really paying for the location, solid build of the house, and that we're not moving for 20 years.

You have to ask yourself whether you really want the property after knowing what you know now after the survey and regarding the service charge, or if its too much hassle. Perhaps ask why the service charge went up 20%. Is it a one off for roof repairs? Or are they consistently depleting their reserve funds? 

Fidenex

Thanks - it is a bit reassuring to hear this from more experienced home buyers! As a FTB everything is stressful.

It has been a very annoying protracted process - and I can't help but feel the vendor has a price in mind and is unwilling to budge. For context, the flat was previously on the market but the previous buyer wasn't able to secure a mortgage (according to the EA) so it was put back on market at the same asking price, which is when I made the offer and had an offer accepted under asking.

This was back in September. While getting the solicitor and mortgage arranged was very quick, within a few weeks, access to the property for survey and inspections has been quite a challenge. It took nearly three weeks from booking a surveyor to gain access to the property and subsequent attempts for the inspections (ie: with the electrician) had some delays. The EA seems to claim that this purchase is the holdup in the chain but weeks go by without any response from the vendor or their solicitor in relation to enquiries, despite chasing the EA. It really souring the experience in what is already a stressful process. The mortgage offer is due to run out in two months as well, which is adding to pressure. While I appreciate the conveyancing process takes a while, it feels that with the delays in access to the property for the survey/inspections/responding to the enquiries the vendor is dragging out the process, and further renegotiation based on the survey result may add to that.