Renegotiating after a survey with several faults.

BikingBud

warwick2001 said:

sheramber said:

Without a valuation it is what you think it is worth against what he thinks it is worth.  

Even with a valuation, it's still this. A seller will not sell unless he/she is in agreement with the amount offered by the buyer (original asking price, or revised amount after negotiation). Whilst the seller doesn't hold all the cards in this transaction, he/she holds the biggest one i.e. they own the property the buyer wants to buy.

OP's situation highlights this perfectly. The property, according to the seller, is worth XXXX. The buyer (OP) thinks it's worth YYYY. Unless they can reach ZZZZ (which both parties agree to), the house will not be sold. Everything else before the ZZZZ value is reached is just negotiating tactics (things such as historic house sale prices, current mortgage rates, amount of work needed to the property etc.).

Ultimately, and I think this point is missed on here sometimes by various opinions stating "Offer 50% less, the market is crashing!!!", unless the sellers and buyers agree a value for the property, the transaction doesn't happen. Yes, the seller may be delusional and value the property far too highly, Yes, the buyer wants a bertie-bargain given the market conditions at the time. BUT, if an agreement isn't reached, the property don't sell. Again, the OP's situation highlights this perfectly. Seller has value too high (in OP's opinion), buyer wants to pay less, if no agreement, buyer moves on and buys another property, and seller sells (possibly) to someone else willing to pay the price.

And the seller also owns the risks, the interested party gets the property at a price that reflects their risk estimation and tolerance, ie cost of expected works, or suddenly the buyer no longer wants to buy and walks.

Yes other prospective buyers may come along and have a different position but the vendor should be aware that their biggest risk if they hold out, might be not selling, for quite a long time.

Without sight of the property, including the layout or location, it appears too much hassle for me.

lookstraightahead

newsgroupmonkey_ said:

Pull out.

If I were the seller, I'd put the house straight back on the market.

Ultimately, a house is worth what someone is willing to pay. If that's not you, it'll be someone else. Yes, in this market, they might not get full asking price, but their onward purchase is almost certainly based on what they're selling for, so they'll need to maximise this.

This is why it's worth negotiating. A price chosen by the vendor purely because it means they can afford the next isn't something I'm going to pay for.

I agree the op just needs to move on. It's too much hassle when a vendor isn't that bothered about selling anyway.

Statex2_2

Thanks for all the replies and I am following the advice of the majority of replies and pulling out. The troube is that I am being houded by my estate agent, the other estate agent and my solicitor to move on with the conveyance. i advised him to work on the sale of my property but not to start on the conveyance of the purchase as I have not concluded my negotiations. 

The buyers of my house are obviously pestering my estate agent but they have not  acted very fast. They had a valuation survey in December and are having a full survey next week, 

Sarah1Mitty2

lookstraightahead said:

newsgroupmonkey_ said:

Pull out.

If I were the seller, I'd put the house straight back on the market.

Ultimately, a house is worth what someone is willing to pay. If that's not you, it'll be someone else. Yes, in this market, they might not get full asking price, but their onward purchase is almost certainly based on what they're selling for, so they'll need to maximise this.

This is why it's worth negotiating. A price chosen by the vendor purely because it means they can afford the next isn't something I'm going to pay for.

I agree the op just needs to move on. It's too much hassle when a vendor isn't that bothered about selling anyway.

Exactly, they need to make up the shortfall from savings if they can`t afford their next house.

Sarah1Mitty2

BikingBud said:

warwick2001 said:

sheramber said:

Without a valuation it is what you think it is worth against what he thinks it is worth.  

Even with a valuation, it's still this. A seller will not sell unless he/she is in agreement with the amount offered by the buyer (original asking price, or revised amount after negotiation). Whilst the seller doesn't hold all the cards in this transaction, he/she holds the biggest one i.e. they own the property the buyer wants to buy.

OP's situation highlights this perfectly. The property, according to the seller, is worth XXXX. The buyer (OP) thinks it's worth YYYY. Unless they can reach ZZZZ (which both parties agree to), the house will not be sold. Everything else before the ZZZZ value is reached is just negotiating tactics (things such as historic house sale prices, current mortgage rates, amount of work needed to the property etc.).

Ultimately, and I think this point is missed on here sometimes by various opinions stating "Offer 50% less, the market is crashing!!!", unless the sellers and buyers agree a value for the property, the transaction doesn't happen. Yes, the seller may be delusional and value the property far too highly, Yes, the buyer wants a bertie-bargain given the market conditions at the time. BUT, if an agreement isn't reached, the property don't sell. Again, the OP's situation highlights this perfectly. Seller has value too high (in OP's opinion), buyer wants to pay less, if no agreement, buyer moves on and buys another property, and seller sells (possibly) to someone else willing to pay the price.

And the seller also owns the risks, the interested party gets the property at a price that reflects their risk estimation and tolerance, ie cost of expected works, or suddenly the buyer no longer wants to buy and walks.

Yes other prospective buyers may come along and have a different position but the vendor should be aware that their biggest risk if they hold out, might be not selling, for quite a long time.

Without sight of the property, including the layout or location, it appears too much hassle for me.

That`s right, the buyers they scare away have loads of choice on different properties, they are stuck with the one they want to sell.

PartyOfFive

Statex2_2 said:

Thanks for all the replies and I am following the advice of the majority of replies and pulling out. The troube is that I am being houded by my estate agent, the other estate agent and my solicitor to move on with the conveyance. i advised him to work on the sale of my property but not to start on the conveyance of the purchase as I have not concluded my negotiations. 

Have you actually told anyone that you've pulled out of buying the house?
I think you'll find that you'll stop being hounded when they know.

fackers_2

Be confident. State your clear intentions and hold fast. Wait for them to come to you. If they are confident it can resell at same price they’ll list it. If not they’ll come back to negotiate. 

As it’s a buyers market, I’d totally follow my own advice as reductions are happening on properties monthly. MoM news isn’t looking great, seller will 100% feel that pressure. 

Also, best to negotiate via email only and never in person or phone so you get your facts and figures clear and not pressurised by Estate Agents. They are hounding since they want their sales commission. 

Mutton_Geoff

Statex2_2 said:

MultiFuelBurner said:

TheJP said:

What did the surveyor/and or lender survey value the property at?

this is key they will have given you a figure?

The surveyor did not value the property. A valuation would have been an extre £350. 

Which is about 0.6% of the amount you are trying to negotiate.

fackers_2

Mutton_Geoff said:

Statex2_2 said:

MultiFuelBurner said:

TheJP said:

What did the surveyor/and or lender survey value the property at?

this is key they will have given you a figure?

The surveyor did not value the property. A valuation would have been an extre £350. 

Which is about 0.6% of the amount you are trying to negotiate.

It’s worth every single penny! I and I’m sure most people would never buy a property without an expert eye! Never know what you can’t see.