House surveys play a crucial role in the buying process as they can uncover potential issues which may affect the home’s value. If your home survey has flagged up some problems, here’s how you can fairly and effectively renegotiate the price.
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Can you negotiate after the offer is accepted?
Once your offer is accepted, the home will be listed as ‘Sold Subject to Contract’ (SSTC) which means the conveyancing process can commence, but the sale is not yet legally binding. Up until exchange of contracts, you are free to negotiate the home’s sale price. However, you should act pragmatically and be aware that your seller is not obligated to agree on a lower offer.
What happens if the survey results are bad?
Issues found in the survey can throw a spanner in the works during a house sale, especially if the defects are linked to the property’s structural integrity. The cost of rectifying these issues can stretch the buyer’s budget too tight, which is why the price is often renegotiated after a bad survey.
As a buyer, you can either go ahead with the agreed offer price, withdraw from the sale, or renegotiate to a lower price.
It’s also worth noting that your mortgage lender could decide that the property is not worth the agreed price and refuse to loan you this amount in light of their survey’s findings. In this case, you can either walk away from the sale or try and agree on a lower price.
Related: The 11 essential documents for buying property
How to renegotiate a house price after survey issues
If your survey flags up serious issues with the property, you’ll need to carefully consider your next steps. Negotiating is known to happen in property sales, but it’s easy to go wrong if you act without planning.
Speak to your surveyor
Make sure to ask your surveyor for a comprehensive breakdown of their findings. They will be able to advise you on your next steps and whether any further investigation is needed. This could all be included in the price of your survey, so don’t be afraid to dig deeper.
It’s also important to note that some types of surveys are more thorough than others. While most will rank issues in order of their severity or urgency, others will use a traffic light system to rate the severity of issues found.
Related: What’s the difference between conveyancers, solicitors and surveyors?
Speak to the seller
If you’re still interested in the home, you should get in touch with your seller’s agent to discuss your findings right away as this will give them plenty of notice if you’re planning on renegotiating. You could also request that the seller fixes the issue before you proceed with the sale rather than offering a lower price.
Keep in mind that the seller may be in a chain themselves. If your requests are respectful and realistic and you don’t give off the impression that you’re trying to gazunder, they could be willing to negotiate with you rather than go through the hassle of finding another buyer.
Find out how much it will cost to fix the problem
It’s important to get a couple of quotes so you can compare the scope and cost of the repairs. For issues like damp, repair costs can vary massively and you may need a separate damp survey to understand the extent of the problem. Collecting various quotes to present to your seller can help you prove that your renegotiated terms are fair and accurate.
Related: Five compromises you can make with your new home
Think realistically
Surveyors are obligated to flag up any issues – both small and large – so it’s important that you understand the implications of what’s highlighted in their report. Your seller is not likely to accept a lower offer for minor cosmetic repairs, so you’ll need to think realistically about your options first and act accordingly.
Whether you’re buying or selling, contact your local Parkers branch for expert advice
