Survey issues - asking for reduction

Jo_King

Hello,

So I've had an offer accepted on a house. I really like it, and bought it knowing it needed work doing - a new bathroom/ kitchen/ windows/ doors/ fencing/redecorating. However, everything I saw suggested the structure was sound. There was a lot of interest and several bidders.

However, I've had a very thorough survey done which has highlighted substantial damp in the chimney, lintels that need replaced, warped joists below the bathroom/above the kitchen (which need replaced), damage to the chimney and damp caused by blocked floor vents. There's lots more, this is just the start!

I've had a reliable builder price up the 'extra' work. It's likely to come to at least £15,000, which is about 10% of the offer. 

I do still like the house, and I'm prepared to get a builder in to manage all the work. However I feel I need to renegotiate the price. Would you go back and say 'this is the figure for structural work, can you reduce the price by this much', or should I meet 50% of the extra costs? Is there an etiquette to this, or is it just how brave I'm prepared to be?

Thanks.

canaldumidi

Yes depends how brave.

There's no formula and no single right answer.

You have to weigh up what you can afford and how much you want this property, and request a reduction based on that, plus the evidence you show the vendor (ie the survey and builder's quotes).

The vendor has to weigh up how much he can afford to drop the price (he may be relying on £XK for his onward purchase), how much of a hurry he's in to sell, and how many alterantive buyers he thinks there are.

GDB2222

When the builder priced up the extra work, was he aware that you would be doing everything else? For example, if you are ripping out the kitchen and bathroom, and presumably taking up the bathroom flooring, how big a job is it really to replace some joists? 

Is the chimney capped?

diystarter7

Go for a total refurb now rather than later and the 15k builder price will work out at less.

Try the 15k rout and see what they say
If it was me and i was having done what you said you was going to, I'd settle for 5 possibly even less if i really loved the location as that is what counts

NB: A similar house on the same road may not appeal to me  because the way the sun comes up, if its on a corner where yo often get troubl, next to a shop, bus stop etc

BikingBud

canaldumidi said:

Yes depends how brave.

There's no formula and no single right answer.

You have to weigh up what you can afford and how much you want this property, and request a reduction based on that, plus the evidence you show the vendor (ie the survey and builder's quotes).

The vendor has to weigh up how much he can afford to drop the price (he may be relying on £XK for his onward purchase), how much of a hurry he's in to sell, and how many alterantive buyers he thinks there are.

OP - You haven't bought the house, you've offered against it with a limited knowledge of the condition, now you have the survey report you know little more!

@canaldumidi The vendor has to weigh up the reality that there are a number of problems with the property against the likelihood that potential buyers will seek to limit their exposure for repair costs outside budget. The vendor's onward purchase is not the OP's concern. 

There may be alternative buyers but have they commissioned a survey, do they understand the extent of the issues and are they willing to expose themselves to those repair costs?

We don't know nor do we know how big the OP's slush fund might be.

The OP should decide what they can afford and why not try to get the price reduced by the whole estimated amount, if that fails decide how much of the slush fund they want to spend.

If they do buy it and the cost to refurb comes in less than planned then they are in a good place whereas if they do not get the reduction and it costs more than planned then not only may the  budget be hammered but they may always regret not seeking to purchase at the best price for them.

babyblade41

From that kind of survey a lot of this could be visible on viewing .

This sounds like a property that needs some work doing so I would presume when viewing you had envisaged quite a few problems.

If this is a desirable area don't be too surprised if vendor takes a better offer .

Do you have access to maybe family who can help with renovation ? if not then maybe a more updated property would be more suitable.

Renovation takes time & money, it also is a bit of a nightmare to live through ..lots to think about 

Jo_King

Thanks for your replies. I think the builder has taken into account other work - I'll be paying for scaffolding anyway for example - and it'll be cheaper to address the kitchen issue because there's other work that'll be done at the same time. 

I won't need to live there while it's being renovated and tbh, the builder is brilliant - he's done work for family and friends, and is very direct. I fully expected a big renovation, but not the structural work - and while I can afford it, it would stop me doing the work that I wanted to to make this 'my' house (downstairs loo, small kitchen extension). 

I think anyone else who's offered will come up against similar issues. It's a lovely house, but the asking price + essential renovations bring the cost to above what similar properties are selling for.