Survey Before Buying.

fatboydaz

Hi, we sent an offer for a property and stated it was subject to survey. We then had the offer accepted however the estate agent wrote

“Unfortunately, the vendor has made it clear that they will not entertain renegotiation based on any survey results. The low pricing of the property reflects its evident need for a complete renovation. I wanted to ensure this is made clear upfront to prevent you from incurring costs before proceeding.”

The price in now way is low it’s the same as any other property on that road. In this case would you have a survey done or walk away? I’ve seen that property come on and off the market for over a year now. 

Thank you. 

Voyager2002

You could walk away; you could have a conversation with the estate agent. Presumably the price is fair for a property that needs renovation on the basis of everything that you can see. However, at this stage you do not know if it is structurally sound; infected with rot... suffers from any of the potential problems that would need to be addressed BEFORE simple renovation can begin. It would be worth finding out how the vendor would respond in such a scenario.

rolandka

Voyager2002 said:

You could walk away; you could have a conversation with the estate agent. Presumably the price is fair for a property that needs renovation on the basis of everything that you can see. However, at this stage you do not know if it is structurally sound; infected with rot... suffers from any of the potential problems that would need to be addressed BEFORE simple renovation can begin. It would be worth finding out how the vendor would respond in such a scenario.

How much do you like the property? Basically, you are risking the money you spend on a survey. If you like it a lot, do it.

Your offer is subject to survey, that is your condition. If the result is bad then you can walk away. Yes, it's wasted money but you have to protect your investment. It's a must. 

If the property is on and off the market then I'd assume it's hard to sell. People might have done surveys and walked away. It's all an assumption though. You have to go with your gut feeling. There might be a chance that you can make another offer in a couple of months if it's still on the market.

Albermarle

I think the vendor has a point, in that if the property clearly visually needs renovation, then they would not reduce the price based on the usual surveyor points for properties like this. ie might need rewiring, some evidence of damp, historic movement, needs new windows etc etc
However as a previous poster said you have to make sure there is nothing more serious, that is not obvious during a viewing.

TheJP

I would be rejecting an offer if it had subject to survey attached to it. Lets me know the mentality of the buyer and that there will 100% be a renegotiation coming.

rolandka

TheJP said:

I would be rejecting an offer if it had subject to survey attached to it. Lets me know the mentality of the buyer and that there will 100% be a renegotiation coming.

It's just a way of protecting one's investment. I wouldn't necessarily call that a bad mentality.

user1977

TheJP said:

I would be rejecting an offer if it had subject to survey attached to it. Lets me know the mentality of the buyer and that there will 100% be a renegotiation coming.

Eh? It's just expressing the normal procedure of getting a survey and doing the other due diligence after offer but before exchange. Are you saying you'd insist on a buyer proceeding without having a survey?

Hoenir

Are you obtaining a mortgage? 

Millsandovis

user1977 said:

TheJP said:

I would be rejecting an offer if it had subject to survey attached to it. Lets me know the mentality of the buyer and that there will 100% be a renegotiation coming.

Eh? It's just expressing the normal procedure of getting a survey and doing the other due diligence after offer but before exchange. Are you saying you'd insist on a buyer proceeding without having a survey?

I can see what he means to be honest, it’s the fact it’s a given and in my very limited experience the only people that actually mentioned an offer being subject to a survey are people that were difficult in other ways. 

Everyone knows offers are subject to survey. I didn’t mention it when I offered on a property but on the sales memo it said SSTC & survey 

propertyrental

Adding 'subject to survey' neither adds nor detracts anything legally. ALL offers are subject to a host of conditions - why not add 'subject to searches' since searches are always done and might cause a buyer to withdraw. Or 'subject to Enquiries'? Or subject to mortgage application'?

No contract is binding till Exchange - before that there's no legal commitment on either side as to either purchasing, or as to the price.

But I agree - buyers who add 'subject to survey' are either naive FTBs who think it protects them in some way, or are pointlessly declaring that they are the type of buyer who will leap at the slightest issue highlighted in the survey and demand a price reduction.

pjs493

TheJP said:

I would be rejecting an offer if it had subject to survey attached to it. Lets me know the mentality of the buyer and that there will 100% be a renegotiation coming.

I’d never make an offer without it being subject to survey. You just never know what structural issues could be there without a survey. It’s a massive risk to a buyer to not make an offer subject to a survey. If a survey raises massive red flags, the buyer can either walk away or renegotiate as would be appropriate in such a situation if they wished to proceed. Most buyers won’t use it as an excuse to renegotiate, but will feel the need to renegotiate if something that wasn’t made clear in the first place is highlighted in the survey. Especially if it’s a big expensive job like a new roof. 

Glad I didn’t buy from you I guess.