renegotiate price after structural survey

onthestreet

Hi, I have just gone sale agreed on a property, but I think that the structural survey will come back with 50K of issues. I know in the Dublin boom last year 2014, it wasn't generally possible to get any money off as the next bidder was right behind you. Anyone got any experience with the current market? How much can I expect to ask off the price?

wingnut

onthestreet wrote: »

Hi, I have just gone sale agreed on a property, but I think that the structural survey will come back with 50K of issues. I know in the Dublin boom last year 2014, it wasn't generally possible to get any money off as the next bidder was right behind you. Anyone got any experience with the current market? How much can I expect to ask off the price?

When it comes back put it to him. It will reopen negotiations. You can insist on a discount to full amount, the seller may tell you to get lost or you may meet somewhere in the middle. Seller may not be willing to knock much off so you have to ask how much do you want the house?

davo10

Properties are marketed and sold as seen. Every survey will come back with a different set of observations so sellers typically will not discount based on a survey, particularly if the underbidder was close to the price accepted. You can ask for, but you are unlikely to receive a discount, you just have to consider whether you want to proceed but bare in mind, the survey on the next property you bid on will throw up a few problems as well, they nearly always do.

cpoh1

onthestreet wrote: »

Hi, I have just gone sale agreed on a property, but I think that the structural survey will come back with 50K of issues. I know in the Dublin boom last year 2014, it wasn't generally possible to get any money off as the next bidder was right behind you. Anyone got any experience with the current market? How much can I expect to ask off the price?

Why would you bid a house to a certain value in the knowledge that there is additional work required and that you would be looking for a discount once you have gone sale agreed? Poor form.

And people wonder why estate agents ask people to get surveys done in advance of bidding.

Barely Hedged

onthestreet wrote: »

Hi, I have just gone sale agreed on a property, but I think that the structural survey will come back with 50K of issues. I know in the Dublin boom last year 2014, it wasn't generally possible to get any money off as the next bidder was right behind you. Anyone got any experience with the current market? How much can I expect to ask off the price?

To be honest, any property requiring that amount of remedial work, it must have been fairly obvious from the outset of bidding that money was needed to bring it back to a sound structure.

Given this, i think its fair to assume that the seller believed you understood this and you had anticipated spending a fair chunk on such remedial work and it was priced into your offer.

If this is the case, youre very naieve in then thinking of returning to renegotiate. Its always an option in the case of hidden issues, but if the situation is as ive described above i.e. fairly obvious structural defects, youre going to get nowhere.

riclad

WHY would someone get a survey done , unless they had a bid accepted,
if house is more than 10 years old,
i,d bid with clause,
i may change bid price if survey reveals major problems, large repairs needed .
50 K = LARGE repairs needed .House must be in really bad condition.
maybe roof ,damp, wall, problems ,structural repairs .
you could buy a 2bed house in rural area for 50k.
surveys cost 100 ,s of euros ,
you get a survey when you have a bid accepted by the seller.

I,D ask for 40k drop in price ,or walk away from this house.
Unless you love this house, you think there,s not much chance of getting another house in the area .
Theres 1000,s of houses for sale that need no repairs or repairs under 1k.
This must be an old house if it needs 50k repairs.
its like buying a car,
This car is great,
by the way you,ll have to put in a new engine ,new windows , and
2 new doors .

My friend bought house 10 years old ,
spent maybe 3k,
He put in pvc windows,new insulation ,in attic,2 doors in the side garage .
2 large pvc windows in the garage .

in Some area s of dublin price s are not rising at all ,
maybe cos of new 25 per cent deposit rule .
AN old house can have problems in roof,attic, walls, which may not be obvious to a layman,
dry rot rising damp, damp,,certain problems, etc ,can be hidden by plaster ,wallpaper.carpets,
old furniture etc
that,s why people pay for a survey .most people are not building experts .
There,s probably houses for sale in that area ,if its an old house,
that might need 5-10k repairs ,modernisation,
pvc windows,extra insulation upgraded to modern standards .

You bid for a house to see if you and the seller can agree on a price, and you can afford the price the seller wants .

IF you see house advertised ,around the city centre ,or older area,s
needs major renovation etc, this means there will be large repairs needed ,
20k plus ,
these are old house s, eg a fixer upper .
but these houses are usually cheaper than the houses down the road .

Balmed Out

When you say you expect 50k of work after the survey, do you mean to say the engineer has flagged issues to you or that from your own viewing before bidding it was obvious that x,y and z were wrong?

If obvious I would expect that to help dictate the original bid, if not then definitely try to negotiate and be prepared to walk away if the price plus works make the house more expensive then you feel its worth or more expensive then you can afford.

There will always be certain issues but 50k is a lot, especially as we dont know the value of the house. If its a million then not a huge amount, if 200k then its a massive chunk.

riclad

BE prepared to walk away,if you dont get say 30-40 k off the agreed price,
eg 50k repairs on a 180k ,house is a massive amount of work to pay for .
how much is the house price,can you say here .
i understand if you are paying 500k, on a house ,50k may not seem not so much more to spend .

spaceHopper

If you though there were problems with the house you should have raised them with the EA or sell at the time. If a surveyor found problems that were hidden or unknown to you then fair enough ask for a discount but if they are obvious then expect the EA to call the under bidder before they get back to you.