Renegotiating house sale post survey?

M

Marple

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Has anyone ever renegotiated purchase price of a house subject following receipt of surveyor`s report?

We`ve sale agreed on our house for the past four weeks. The intending purchasers have just ordered a structural survey to bo done to our house before they sign(hopefully) the final contract.

I`m feeling a tad nervous about this. Sale Agreed is a nerve-wrecking stage anyhow as we know the buyers can pull out at any time and we`d be back to square one again.But we`re wondering if, at this stage, and on receipt of the surveyor`s report, the buyers might try to renegotiate the house price.The house is pretty sound though the windows need replacing and the boiler needs changing and God knows the surveyor might dredge something else up. Could the buyers ask us to fork out for these repairs/take them into account in the final sale price?

Has anyone ever experienced a challenge like this at this stage in proceedings?

How should we respond if we`re asked to renegotiate? We had taken the window replacement factor into consideration when pricing our house but we don`t want to lose the sale at this point in time either as we could lose the house we`re buying.

Is this selling house/buying house lark turning me into a pessimistic, cynical, blithering wreck?
 
A friend of mine had sale agreed on a house. After the surveyors report it was deemed that it wasnt a 5 bed house as 2 rooms in the attic didnt adhere to planning regulations. My friend tried to get the price knocked down due to this but the seller wouldnt go for it. The seller then pulled out of the deal and has stayed put.

If they pull out your plans may be put back a while as estate agents would have to do more viewing as previous prospective buyers may have found somewhere else.
 
Marple said:
the windows need replacing and the boiler needs changing and God knows the surveyor might dredge something else up. Could the buyers ask us to fork out for these repairs/take them into account in the final sale price?
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I'm just guessing but I strongly doubt you or your agent (i.e. the estate agent) drew the purchaser's attention to any defects of which you are aware but which no lay person could reasonably be expected to notice in a standard house viewing. (I'm particularly thinking of the boiler here.) It seems to me that if their surveyor spots any defects you have neglected to point out then they are perfectly within their rights (both legally and morally) to withdraw from the sale pending a reduction in the agreed price or rectification of the defects by the vendor.

Of course, if it's of any consolation to you, the chances of most "surveyors" spotting a defect unless something falls down and hits them on the head during their visit are very slim.
 
We went sale agreed on a house earlier this year. We got a good surveyor and used the report as a bargaining tool. We negotiated €15k off the sale agreed price - as the survey gave us an indication of how much we would have to spend. We knew that we would have to spend money on the house but had no real idea how much until the survey was done. The guesstimate came in c. €30k - so wanted the seller to put up half -which we felt was fair. The bidding process coincidentally had pushed the selling price €15k over the price the house went on market at. The seller was relucant to agree the reduction of selling price. We were prepared to pull out if they did not meet us on the full amount requested.
 
Marple, it's entirely up to the proposed purchaser if they want to attempt to renegotiate the agreed price with you post survey. However, you have no obligation to draw any defects or required repairs to their attention at any stage. If their survey identifies issues then they can decide if they want to proceed in full knowledge of the estimated cost of remedying those defects or making any repairs their surveyor considers necessary. Who knows - they could well have factored in cost of replacing windows and bolier before making a bid - it's not unusual to have to replace those. If they come up with something, deal with it then. Personally I'd be reluctant to reduce asking price after it's sale agreed unless there is a structural defect and in that case the buyer will probably withdraw!
 
As someone else said the windows are almost definitely something they will have factored into their bid price, like for instance, replacing kitchen. If the boiler needs replacing, this is something they may wish to go 50% on.
The surveyor report just checks for major defects from my own experience
 
I have been sale agreed on a house for 3 weeks and just had the survey done there last week. Things like windows etc I wouldn't expect the seller to fix but it turns out there are problems with the roof. Waiting on the written report to find out exactly what the story is but I def think something major should result in a renegotiation of the price.
 
sun_sparks said:
could you share details of your surveyor?
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Good morning sun sparks,
If i am not mistaken, you are about to buy a house in Lucan which would have been built only few years ago..and i bet you it already has been surveyed by present owner.
What do you expect from a surveyor's report?
 
sun_sparks said:
Um... not quite sure? I thought it was standard practice. I'm wrong I take it!
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You are correct, this is standard practice...and that's the problem, People get it done because it is standard not because it is really needed for the property. And it's only few €100s....

I think it all depends on what the survey covers/does not cover. For few €100s, the surveyor report will say "yes there is a house there, and it was standing up when i visited". Not even sure if the surveyor will enter in the house. And this "light" survey may be organised by your lenders anyway.

So, if you decide to have one done for whatever reason(s), make sure the survey will meet your expectations....You may want the house to be tested for dampness, Central Heating to be checked, plumbing, electricity..... God knows what. If it help you to sleep well & for peace of mind, that's also a reason... But it does not provide any guarantee...

Personally:
I bought a second hand house in 1999 which was build in 1992. I did not get a survey done as to me the house was too "new" to needed one , and the bank did not need one...so saved few quids to buy well-needed stuff for the house.

When was the house you are bidding one built?
 
sun_sparks said:
actually it's 1997 - probably old enough to warrant it, or what do you think?
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I would not bother getting a survey done. Houses are built to last few generations.

Do you know who the builder was?
May be you could check if it has Home Bond Guarantee Scheme?

I got the following from www.homeloans.ie

Home Bond
This scheme was established by the Construction Industry Federation and the Irish Home Builders Association, in conjunction with the Department of the Environment. It ensures that proper building standards are maintained and protects purchasers by underwriting any major structural defects.


Homebond provides a ten-year warranty for structural defects to new properties built by registered builders. Under the scheme builders and developers register properties with Homebond and pay a fee for each of them. The buildings are inspected by Department officials during construction and when everything is completed satisfactorily, a certificate is issued. This certificate more or less guarantees the property for up to ten years against major structural faults. Should a fault or defect occur, the builder or developer is responsible for rectifying it.

Homebond has a complaints scheme for non-structural defects in new houses, arising within a year of buying the house with effect from 1 January 2001. Non-structural defects covered under the scheme include leaky plumbing, uneven flooring, breaches of fire requirements such as smoke alarms and lack of insulation. The register of builders is available in local libraries, building societies and local authorities. Buyers should check that their particular builder or developer is registered. If a problem arises, the buyer must notify the builder in writing. If the builder fails to rectify the problem, Homebond will mediate and possibly refer the issue to arbitration.
 
As Bacchus says, a house built in '97 is unlikely to have any major structural problems. However this is likely to be one of the biggest purchases, if not the biggest purchase, you will make in your life. If I were buying ANY secondhand house, I'd pay for a survey. And make sure the surveyor has professional indemnity insurance.
 
To go back to Marple original question...
It is standard to get a survey done, it does not mean that the buyer intends renegotiating the price.
If the survey shows something that they were really not expecting, and will cost them money, they may want out, or renegotiate with you.
If they do this, you need to decide if you can resell it at the original price, or whether
the survey has actually re-evaluated what the house is worth ( only in the case of
a structural problem being found).

I know it is a nerve-wracking time, but there is a very high chance that you will get
beyond this stage unscathed.
 
Thanks for all your replies, folks. And in answer to one of your queries yes, we had discussed the fact with the estate agent that the windows had needed replacing and had put a fair price on our house. A bidding situation brought it 10k above the asking price so it will be interesting to see if the intended buyers(they were the highest bidders) intend to claw some of that bid back.

Anyway, the surveyor has come and gone.His survey took all of 20 minutes. Yes, he did look into the attic briefly, tapped on a few walls and went out to check the fencing in the back garden. I didn`t follow him around though so could`nt say wheter the survey was very comprehensive. Anyhow he said we`ve "nothing to worry about" as the house "is typical for it`s age " and mentioned the windows and boiler(it`s working and we`ve replaced the burner in it 2 years ago and have had it serviced annually) will need replacing.

So, it`s wait and see time with our intended buyers. Maybe their solicitor recommended the survey and maybe they`ll be happy enough to know the house is structurally fine and are happy with the price. And it`s good advice on their solicitor`s part.

In fact I reckon it`d probably be a good idea to get a very thorough survey done if a house was over 10 years old. I just never thought of renegotiating sale agreed price being a possibility post survey.

Anyway hope our intending buyers put us out of out misery soon and let us know their decision.

Thanks again everyone.
 
Good luck Marple - it's a very stressful time - for all sides! If both parties are reasonable there is every possibility of a satisfactory conclusion.
 
Hi This business of renegotiating the price of a house following survey amuses me because from what I see all around me are industrial skips outside sold property . Usually, the next step is stripping the house down to its bare bones. In fact a house close to me had 3 industrial skips ( you know ,skips the lenght of the drive way) and I know that the price paid for the house was reasonable .Many houses in the area all reach their prices and still the new owners stip out everything. So, When I sell ,I wont horsetrade like people do when selling or buying. You know, car dealer looking at your car, "Ah ,but I know you have only 10,000 miles up but the car is 10 years old" or "Ah ,I know the car is 1year old but the milage is high" Anyway ,When considering what price you want for your house ,you should take everything good and bad into consideration before you decide on the price and I'm talking about major items , like ,is the ceiling about to fall down?
 
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