PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Making a revised offer after a Homebuyers report
Options
Comments
-
You can offer what you like and the vendor can accept what they like. Simples0
-
AnotherJoe wrote: »God save me from FTBs when I sell this house. :eek:
FTB's are like learner drivers - we've all been one once and large quantities of patience should be applied when dealing with them.
BUT sometimes it's flippin hard work dealing with them0 -
I do get a little irritated by people saying that if the valuation in the survey is at the offer price you should not be dropping the offer whatever has emerged in the survey.
Take this scenario.
Buyer A has £200,000 he can afford to spend. House is up for £195,000. A notices a few things need doing, costs them at £7,000. Offers £190,000, which will leave him £3,00 in hand for anything unsuspected. Offer is accepted.
Surveyor finds £8,000 more of stuff that needs doing PDQ which would not have been evident to an ordinary buyer, like A. But surveyor still values it at £190.
Now, A can only afford to pay £200,000, less the £7,000 of work he noticed and costed, and the £8 the surveyor noticed. So he can only afford to pay £185. He needs to drop his offer by a further £5,000.
The surveyor's valuation (which might easily be + or - £10,000 with another surveyor) is £190.
What can A do other than explain, show the quotes for the extra £8,000, and ask for a £5,000 reduction?
Do people think A ought to just walk away and not even give the vendor a chance to accept a lower offer if they choose to, or what?
In a sense, the valuation is irrelevant, if A cannot pay more than £200,000 overall, they can't. And a vendor may well consider that the problems the surveyor found will only come out on the next buyer's survey if they refuse to drop, and the whole thing will repeat. If the the vendor can't drop, then they can't, it's sad for both sides, but the sale can't go ahead. But I really don't think it is unreasonable for a buyer to drop their offer in these circumstances.
(Similarly, of course, a low valuation may still not leave the vendor the money they need, so it may not help a buyer get a lower price.)0 -
Albala, I think you've muddled up two things there.
What the buyer can afford (or is willing to pay)
What the valuation says the property is worth.
The first does not invalidate the second. The buyer can of course say "look there's £8k worth of stuff doing as is explained in this report so I need to drop by that since I can't afford it". they could also say "I don't care what the valuation says I can't afford that so I'll offer X"
To which the seller can say any of "I don't care", "let's meet in the middle", or "sling your hook"
What the buyer cannot use as a reason is "there's this much cost in the report that needs deducting" because "this much cost" is already allowed for in the report.0 -
I take your point, (but it needs deducting from the offer in those circs whatever the survey says, wouldn't you say?)but my point was that a number of posters on this forum do the equivalent of a verbal hatchet job on a buyer who is suggesting reducing an offer after a survey if the valuation is above the revised offer, which is just illogical. I have seen some really nasty and unfair attacks on new posters where the attackers didn't even bother to read the OP properly on just this very issue (and others).AnotherJoe wrote: »Albala, I think you've muddled up two things there.
What the buyer can afford (or is willing to pay)
What the valuation says the property is worth.
The first does not invalidate the second. The buyer can of course say "look there's £8k worth of stuff doing as is explained in this report so I need to drop by that since I can't afford it". they could also say "I don't care what the valuation says I can't afford that so I'll offer X"
To which the seller can say any of "I don't care", "let's meet in the middle", or "sling your hook"
What the buyer cannot use as a reason is "there's this much cost in the report that needs deducting" because "this much cost" is already allowed for in the report.
Earlier this year we reduced an offer due to work that wasn't visible on viewings needing doing. In fact, we dropped the offer by well less than a third of the extra costs, for which we provided quotes, and our revised offer was still £15,000 over the valuation, but I didn't provide the valuation as an argument, because, as I said, in terms of negotiation, it's irrelevant either way. What counts is what we can/will pay, and what the vendor will/can't accept; though I'd say it's 'manners' to allow the vendor to see any quotes so they know you aren't mucking them about or lying. Of course, a lower valuation for mortgage is different; it's relevant, because if the buyer can't borrow enough, they can't do the necessary work, and unless the vendor can find a cash buyer, it is likely to happen again with another buyer, so they need to know.0 -
Genuine question - how often do surveyors give a price anywhere much different to the offer/accepted price? They know that going in and it is amazing to me how every surveyor I've ever dealt with so happens to give the valuation at the price accepted or near enough.
Bottom line is how much you want the house. You can negotiate up until completion. But then it is how much you want the house vs spare money at odds with how much the vendor wants to sell vs lose a bit more money they had hoped for. They often have a price they need for buying on as well, to consider.0 -
Above? Almost never.Genuine question - how often do surveyors give a price anywhere much different to the offer/accepted price? They know that going in and it is amazing to me how every surveyor I've ever dealt with so happens to give the valuation at the price accepted or near enough.
Below? Regularly, when they think they've found things that aren't taken into account in the price.0 -
But we had the following post this week:Above? Almost never.
Below? Regularly, when they think they've found things that aren't taken into account in the price.
https://forums.moneysavingexpert.com/showpost.php?p=75813368&postcount=950 -
..."almost"...0
-
I do get a little irritated by people saying that if the valuation in the survey is at the offer price you should not be dropping the offer whatever has emerged in the survey.
Take this scenario.
Buyer A has £200,000 he can afford to spend. House is up for £195,000. A notices a few things need doing, costs them at £7,000. Offers £190,000, which will leave him £3,00 in hand for anything unsuspected. Offer is accepted.
Surveyor finds £8,000 more of stuff that needs doing PDQ which would not have been evident to an ordinary buyer, like A. But surveyor still values it at £190.
Now, A can only afford to pay £200,000, less the £7,000 of work he noticed and costed, and the £8 the surveyor noticed. So he can only afford to pay £185. He needs to drop his offer by a further £5,000.
The surveyor's valuation (which might easily be + or - £10,000 with another surveyor) is £190.
What can A do other than explain, show the quotes for the extra £8,000, and ask for a £5,000 reduction?
Do people think A ought to just walk away and not even give the vendor a chance to accept a lower offer if they choose to, or what?
In a sense, the valuation is irrelevant, if A cannot pay more than £200,000 overall, they can't. And a vendor may well consider that the problems the surveyor found will only come out on the next buyer's survey if they refuse to drop, and the whole thing will repeat. If the the vendor can't drop, then they can't, it's sad for both sides, but the sale can't go ahead. But I really don't think it is unreasonable for a buyer to drop their offer in these circumstances.
(Similarly, of course, a low valuation may still not leave the vendor the money they need, so it may not help a buyer get a lower price.)
I can't imagine why the seller would agree to drop the price to below the valuation. The ability of the buyer to afford additional repairs is irrelevant. Furthermore just because a surveyor identifies a problem doesn't necessarily mean that it needs immediate rectification0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards