Gone Sale Agreed But Found Significant Issues Post Survey - Best way to negotiate

[2ForJoy]

We had an identical experience. Went sale agreed at the asking. Surveyors report indicated structural issues in the roof, and elsewhere. We costed them and went back to the estate agent. Asked for a reduction in the price equal to half of the remediation costs, which we felt was fair. Vendor refused to budge so we pulled out. Vendor relisted the property and sold it again 6 months later to another buyer who either wasnt worried about the roof, or had more money that we had to fix it.

Nothing wrong in asking. But be prepared for your next step if they don't budge. Are you walking away or are you going to accept the property. We knew going back that we were walking way if they didnt move.

Similarly, when we sold a rental property last year, the buyer came back with a list of issues, wanting us to remedy them before signing. We didnt move, as it was a rental house that was tired and needed work and price reflected same. In that scenario, the vendor went ahead and completed the sale.

Hope this helps you.

Thankyou yes very helpful....

 

[2ForJoy]

I wonder what % of buyers don't bother with expense of an engineers report.

No idea ....but we have done it previously felt its been worth it for piece of mind or for confirming a decision to not go through with sale.

 

[2ForJoy]

Mathepac is right it is your private document. You have paid for it. However it is only if use to you in relation to this property. Offering the report to the vendors shows you are keen and are being as fair and transparent as possible. If it as en executors sale this sometimes holds value.

I was on the opposite side of a similar transaction. In fact same scenario. The buyer provided their surveyors report which was great.

The buyer sought an outrageous reduction and the report was trash. We had it assessed ourselves by an independent surveyor. We refused but in the interest of completing sake offered a small reduction (take it, complete or we go back to market). The buyer signed.

I’m our case there were 4 beneficiaries and the minor reduction divided by 4 was very small so we were happy to get it over the line.

By providing us the report it gave us an insight into what issues the buyer had (turned out they were farcical) and gave us an insight into the type of person we were dealing with.

It’s up to you. Provide the report, don’t provide it. I always have as it can be used as a bargaining chip.

Yes agree... you seemed fair enough as a seller to negotiate even a small reduction ...I have heard of other vendors flatly refusing to negotiate, can understand if there are not genuine reasons. In our case there are costs that were not at all apparent when making the offer... also when making an offer on a house as buyer ( unless very expereienced ) cannot possibly know what hidden issues costs are so think there should be scope to renegotiate post survey.

 

[Alkers86]

Many engineers reprots will forbid sharing the document with other parties, particular in full. You should talk to the surveyor also.

What your doing is standard practice happens all the time, if the issues were not apparent to a layperson during the house viewings, upon which you based your offer then it's fair enough to renegotiate based on issues noted only by a professional.