Using survey to bargain price

H337

Hi,

I'm going through the process of buying my first flat and have a problem. I've got to the stage where I've agreed a price, signed contracts and deeds and sent them back to my conveyancer, but stupidly left the survey until quite late, meaning I'm not sure if I can still use it as a bargaining tool for the price now. I don't have any completion dates yet, nor am I sure whether the contracts have been exchanged yet (I sent them 25th Feb).

The survey has come back stating that the gas boiler, electrics, and water haven't been serviced or inspected in several years and are overdue. Also that the boiler will need replacing very soon (something I knew).

I'm thinking that I should present the survey to my conveyancer and get the vendor to service and get inspections for the above, at their cost, before I continue with the purchase.

I'm also thinking I should insist I arrange to get them done with companies I choose, so I can insure independent professionals are used and not someone the vendor may get in who he knows.

Does this sound like a good approach to take? Does anyone have any other suggestions?

Caz3121

Does your survey show a valuation for current house condition- how does that compare to your offer price?

H337

Also, could I use the survey to renegotiate on the price even though I'm close to exchangin contracts?

Bluebell1000

Water and electric surveys are not standard, though if it was rented the electrics would have been checked.

Gas boilers would ideally be serviced yearly, but if you know it's end of life anyway, is it really worth the hassle and potential risk of the seller pulling out?

I don't think it's unreasonable to ask if they would service the boiler, but if they are paying, I would expect them to choose the contractor. 

jonnydeppiwish!

If I was the vendor, I’d politely being telling you to do one. If you want it done, you need to pay for it. There’s nothing you’ve mentioned that warrants a decrease in price.

That said, there’s nothing from stopping you from asking….

Bluebell1000

H337 said:

Also, could I use the survey to renegotiate on the price even though I'm close to exchangin contracts?

The survey sounds fairly reasonable and you knew about the boiler anyway, which should have been reflected in your initial offer. You can renegotiate price up until contract exchange. Just because you can do it, doesn't mean that I think it would be ethical to do it... (major unexpected problems are different, but personally if a survey showed nothing too drastic I wouldn't renegotiate).

There may be mortgage implications, which could delay exchange if the price changes. 

You would also need to decide what happens if they say no? Are you willing to walk away from the purchase and start again? Or would you just go ahead anyway?

cr1mson

If you knew the boiler needed replaced then this is not new info so would have been factored into the price

In terms of servicing and inspections not sure how you would service and inspect water and electrics! Even if you could pretty good chance that they won't meet current standards. Think this may be surveyor CYAing.

And in terms of boiler service would just get it done when you move in or replace straightaway.

user1977

You already knew you hadn't had the gas/electrics inspected, you didn't need the surveyor to tell you that (and I'm not sure what sort of "water" service/inspection you're talking about?). Unless there are actually any material problems then I don't see legitimate scope for chipping away at the price.

H337

Caz3121 said:

Does your survey show a valuation for current house condition- how does that compare to your offer price?

No they didn't show a valuation of the flat.

H337

I suppose what I'm trying to say is that as it's still the vendor's property, shouldn't it still be the their responsibility to ensure the service and test the gas and electrics are up to date? And if not, can I request they do so before sale?

user1977

H337 said:

I suppose what I'm trying to say is that as it's still the vendor's property, shouldn't it still be the their responsibility to ensure the service and test the gas and electrics are up to date? And if not, can I request they do so before sale?

It's their property and (assuming it's not let) entirely up to them whether they service the gas and electrics or keep them up to date.

You can request whatever you like, but if what you actually want are reports you can rely on about the condition of the gas/electrics, you get your own people in. It is not normal or compulsory for the vendor to do anything.