Offer accepted but now had survey....advice please

bunnydrumming

My 110 year old two bedroom terrace cottage was valued as being between £135 and £155 by three local agents and went on the market for £155 last May. I reduced the price to £149 in November and I finally accepted an offer of £140 three weeks ago.

The EA phoned today to say that survey had picked up some issues that needed addressing.

1 - Grade 3 issue - the electrics needed upgrading - I have never had any problems with electrics although i accept the fuse box is old

2 - Grade 3 issue - there is damp though first floor - i told them that i had one corner damp proofed in last 18 months after neighbour built extension but no viasible issues else where

3 - Grade 2 issue - there is not a fire escape upstairs (but EA said that buyer was not going to pursue that)

4 - Grade 2 issue - there is a slight crack on the chimney stack and may eventually need capping (or something like that) but buyer not bothered about that

5 - Grade 2 issue - the garage is made of asbestos and so will eventually need toe replaced - however it is obvious garage is asbestos and he must have seen this when looking around - plus EA was aware

Anyway my questions is do i really need to knock anything of the house for these issues. I believe the buyer has got the house for a very fair price and if i have no issue with electrics is this issue.

EA said it may affect buyers morgage as survey has (suuprise surprise) said house is worth £140 only if work done.

Can anyone give me advice as to what to do - i live 2 hrs drive away now so would have to take day off to get quotes for work.

Should i stick to my guns that house is still worth £140
Should i offer to reduce by £1000 as long as contract signed now
Should i wait and see what quotes say and do deal there.

Any advice welcome - annoyed cos its a lovely house and i feel like he is taking advantage as i have already offered to leave bathroom cupboard and expensive set of shelves attached to wall as i do not want to leave damaged wallpaper.

No idea how much upgrade or damp proof will cost!!

vetfred

When we accepted an offer, we then reduced further after the buyer had the survey. It turned out what they told us needed doing didn't need doing (it was completely optional) so perhaps you may want to ask for a copy of the survey to double check that the valuation is 140k once work is completed or 140k in its current condition - some people aren't exactly honest on such matters. I don't think they have to provide it but may be worth asking to determine what it actually says.

It will be up to you whether you feel you should reduce to accomodate them and to let the sale proceed depending on your situation - is it worth losing it for another £1-2k or are you happy to lose the sale and try another buyer down the line.

After viewing many houses, especially old ones, electrics and damp proofing etc are pretty basic questions that they really should have addressed prior to their bid imho.

Upgrading electrics - if they mean a consumer unit then obviously that's nothing compared with being told it needs rewiring.

pickles110564

New consumer unit will cost about £80 from any electrical wholesaler and about 1/2 a day to fit,about £150 in total.
Depending what type of asbestos garage it could cost quite a bit for professionals to come and take it down safely.
You could try and find out if the housing market is starting to move in your area, just be careful that if it stalls you could end up losing more than a couple of grand if you do the deal now.
best of luck pickles

tbs624

It's always difficult with these situations - you could say to either side " you're surely not going to lose out on a sale/purchase because of £1000 are you?"

The fact that the mortgage valuation says £140K, after the work has been done, may not be a problem unless the buyer has financially stretched himself to come up with the deposit already.If the purchaser is a FTB s/he'll be more panicked by a survey result than a more experienced buyer but we all like to think we've paid no more than we need to.



Regarding the asbestos garage, AFAAIA if it's asbestos cement you don't need to have that removed by a licensed firm, although care has to be taken. Face mask, disposable protective clothing etc needs to be worn, the sheeting has to be dampened & double wrapped before being taken to a council designated asbestos disposal point (You can clarify the situation by doing a Google - most Councils have a website page on the topic.)

Has the purchaser made any specific request regarding a further reduction?
As vetfred says, maybe ask to see a copy of the survey yourself?

SouthCoast

and went on the market for £155 last May

As a doom and gloom poster it could be May 2009 before you get another buyer.

bunnydrumming

I have thought about the doom and gloom aspect that it could be on the market for another 10 months.

I was considering ringing back the EA tomorrow and telling her that i will knock £500 of the price (or £1000 maybe) and then sign. What do you think?

I have been very fair to buyer by telling him i will leave very nice set of interlocking shelves because to remove would leave big marks on the wall.

I am not in chain as i am happy renting in new city for now.
He has already sold his house so easy for both of us

Doozergirl

I'd wait to see what they ask for before you start offering.

The mortgage company either say it's worth the money or it isn't generally. If they say it is worth the asking price when items are fixed then they either retain part of the loan until work is done or, if it isn't pressing, they ask that it is done within 6 months (I don't think they even check this though)

ruggedtoast

This all happened when we were selling. Fraid you might have to suck it up and knock the money off. Estate agents arent good at valuing houses and if the wiring is old then the survey will say it needs replacing, even if its fine to use.

Asbestos anything gives buyers the willies, almost as much as...

Damp! If youre selling a property with a damp problem then you have an uphill struggle. No one is going to see that come up on a survey and keep their original offer.

You may have noticed by the fact youve had it on the market for almost a year that people arent exactly lining up to buy it either,shelves or not!

clutton_2

damp on the first floor is odd - look at your gutters, down pipes, window frames, pointing - there could be cracks in any of these which could be fairly cheap to repair.

vetfred

I don't think it's particular uncommon to find damp on the 1st floor - you just don't find rising damp. Many properties of that age have damp on and around chimney breasts due to various things from ventilation issues, flashings that need replacing, even because the lime plaster (if it's 110 years old) can contain salts from all the chemicals that have been burned and those salts in the plaster attract moisture.

Some would say that you should be amazed if you're buying a Victorian house and it's not got damp anywhere.

bunnydrumming

thanks for your replies guys

I finally settled for 137 - a builder friend of mine came for a look and gave me a price of around £2500 just for fixing all damp issues cos it is extensive and behind skirting boards - he said until carpets came up could not be sure of problem.

decided to cut my losses and run quick as i do not want to have to fix all issues.

so excited - completed on in 5 days - yippee