Valuation came back significantly lower than agreed price. Need help with negotiating techniques.

maxxpayne

Induna123 said:

Getting a new roof isn't as daunting as it sounds. Once the scaffolding is up it can be done within two days. Next door neighbour had theirs done recently. Looks great.

That's great to know!

Albermarle

maxxpayne said:

Albermarle said:

maxxpayne said:

Update. 

I’ve managed to get a very good builder to review the whole report and give me a quote. It’s approximately 20k. So with some contingency, we’re looking at around 25k worth of reduction. 

The main thing the builder highlighted was that a new roof will need to happen one way or the other.

What is your plan if the vendor says no chance of a reduction or if they only offer say £5K?

Normally you can not just look at what maintenance costs are likely in the next couple of years, and expect the vendor to effectively pay for them all. 

I don't know really - we've already spent 5k on solicitors fees and surveys etc. so it'll not a zero sum game for us.

When negotiating any business deal, it is best to set yourself a bottom line of what you would accept in advance.
Also to be realistic when setting it.

user1977

maxxpayne said:

user1977 said:

You weren't being sold a house with a brand new roof, so you're not likely to get anywhere near the full cost chipped off.

Not contesting that - but there's a big difference between and old roof and an old roof that requires imminent replacement.

But the comments you quoted from the surveyor didn't suggest imminent replacement is required?

BikingBud

Aside from the fact we have only seen very minor extracts of the surveyor's report, we also have not seen the property nor do we know the location/neighbourhood and the current prices of similar houses within that location. Yet the number of people that consider that the OP should not renegotiate their offer and just accept paying £50k more than their surveyor, who has seen the house and has spent some time crawling in and around, who will have conducted review of local pricing and comparisons, considers a fair price for the house, is somewhat alarming.

That the vendors flew a kite at £900k is again nether here nor there. They appear to have had at least some reconsideration and their "sense of loss" should be tempered by the reality that the OP has added in the more recent posts.

spoovy

You could try on dropping the offer by £25k but I think my reply if I was the seller would be to point out that the state of the roof, windows etc is already priced in.  It doesn't appear that any of these things require urgent remediation and I take it you visited the place and were able to judge the age of these things?
You can always try it on though if you feel lucky.  Depends how much you want the house ultimately, and on your personal appetite(s) for risk. Only you know that.

BikingBud

And here again we have the fundamental issue with the English property market. Buyer beware and added tinge of  house prices will always increase

A Chartered Surveyor who has demonstrable professional competences and is assessed by their peers before being given Recognition, was paid to provide a service. Because the purchaser is a nurse/teacher/marine biologist and doesn't know anything about houses including their structure, provision of services etc.  

That service advised the potential purchaser the condition and value of the house, perhaps the most significant cost they will ever pay out for any asset they ever buy. And as the buyer is borrowing money to pay for that asset, overpayment compounds up and they have to pay extra interest as well as the extra cost.

Yet people on the internet who have know nothing about the purchase other than some feel surveyors are not to be trusted and all those faults were visible and there to be seen give the OP a hard time.

If you were to buy a classic MG car you would get a survey to see the extent of the corrosion, the condition of the engine, the running gear etc and would price accordingly.

Why do people feel that house buyers have the knowledge, experience, competence and ability to observe and price these things accordingly?

House buyers use solicitors to undertake conveyancing, in fact the lenders also do. Professional advice, indemnity!
House buyers use surveyors to undertake condition and valuation reviews. Again professional advice.

Ultimately people will spend their money on what might satisfy their own needs, after all people still smoke, people buy expensive cars and people spend stupid amounts of money to climb Everest. So paying more for a house than your paid advisor advises is up to you but I would consider why you bothered paying if you are going to ignore them.
 
House buyers come on here and people often give advice that reflects their prejudice and bias and the buyer may as well ask the butcher in the high street or Gobby Bob down the pub, at least they are local and may have knowledge about the house and the area.

BikingBud

spoovy said:

You could try on dropping the offer by £25k but I think my reply if I was the seller would be to point out that the state of the roof, windows etc is already priced in.  It doesn't appear that any of these things require urgent remediation and I take it you visited the place and were able to judge the age of these things?
You can always try it on though if you feel lucky.  Depends how much you want the house ultimately, and on your personal appetite(s) for risk. Only you know that.

Then I would say show me your condition survey and show me the quotes for the work!  Because at the moment my professional survey is currently trumping your unfounded unavailable estimation.

silvercar

Valuing a property is an art, not a science. Different surveyors will give different values. At the end of the day a property is worth what someone is prepared to pay.

BikingBud

silvercar said:

Valuing a property is an art, not a science. Different surveyors will give different values. At the end of the day a property is worth what someone is prepared to pay.

Quite, but the professional opinion of a competent person should temper the wild enthusiasm of the greedy seller and the naivety of the careless buyer.

sheramber

the seller wants as much as possible

The buyer wants to pay the least amount possible.

Both either stick to their guns  and the deal is off or thyey meet somewhere in the middle.