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

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2ForJoy

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Gone Sale Agreed in recent weeks on a residential property. Offer above asking price accepted & deposit paid - Sale agreed. Since survey we have found significant issues / work which will be needed at significant more costs than expected. Any ideas of best way to approach negotiations on this to get a reduction on that agreed price as we honestly had not anticipated works now required... whats best recommended approaches ....us going direct with auctioneer, through solicitor or whats recommended approach ..
 
Of course it depends on the nature of the issues.

You can ask but I doubt you will get a reduction. The auctioneer is the vendors agent so you should tell them that given the issues you are going want a reduction to cover these costs.

How would you feel if you had your deposit returned next day.
 
I’d say it is likely the vendor would return to the underbidder(s) rather than agree to a reduction. How significant is the extra work required?
Anyway in answer to query it would be the auctioneer
 
If the defect is significant and other purchasers' surveyors are likely to spot it, then in many cases a reduction can be agreed to move the sale forward.

The vendors may or may not have been aware of the issues, but if genuine and not normal wear/tear they might prefer a reduction in price than further delay with the risk of an under bidder also discovering the issue and seeking a further reduction in price.

Would you be comfortable sharing the nature of the issues?
 
cremeegg said:
Of course it depends on the nature of the issues.

You can ask but I doubt you will get a reduction. The auctioneer is the vendors agent so you should tell them that given the issues you are going want a reduction to cover these costs.

How would you feel if you had your deposit returned next day.
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Thsnks for your response ... You seem to suggest they by simply asking for a renegotiation on price or at least to discuss it you get your deposit back and deal over?? Think that would be a bit dramatic on their part they can always say just say no but deal still on
 
luckystar said:
I’d say it is likely the vendor would return to the underbidder(s) rather than agree to a reduction. How significant is the extra work required?
Anyway in answer to query it would be the auctioneer
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Thanks....significant enough
Leo said:
If the defect is significant and other purchasers' surveyors are likely to spot it, then in many cases a reduction can be agreed to move the sale forward.

The vendors may or may not have been aware of the issues, but if genuine and not normal wear/tear they might prefer a reduction in price than further delay with the risk of an under bidder also discovering the issue and seeking a further reduction in price.

Would you be comfortable sharing the nature of the issues?
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Roof on extension needs replacing...
Just one of the issues
 
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You can only ask. They might ask to see a copy of the surveyors report

They might reject it out of hand and go to underbidder/back to market

They might come to the table and negotiate

They might accept it straight out.

It depends on the nature of the issue and as Leo said whether or not they were aware of it

It also depends on the type of vendor. Executor sale? Trading up? Trading down etc? If an executor sale than the significant amount divisible by the amount of beneficiaries may not actually be that significant
 
rustbucket said:
You can only ask. They might ask to see a copy of the surveyors report

They might reject it out of hand and go to underbidder/back to market

They might come to the table and negotiate

They might accept it straight out.

It depends on the nature of the issue and as Leo said whether or not they were aware of it

It also depends on the type of vendor. Executor sale? Trading up? Trading down etc? If an executor sale than the significant amount divisible by the amount of beneficiaries may not actually be that significant
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Thankyou for that very helpful ....it is an executor sale & we will supply surveyors report when asking.
 
2ForJoy said:
Thankyou for that very helpful ....it is an executor sale & we will supply surveyors report when asking.
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In my opinion then that is in your favour

There could be a number of beneficiaries so ‘the hit’ may not be as severe.

Executors sales tend to want to go smoothly as the property may be empty and there can be complications re that etc

If the issues are genuine and you have them costed go back to the agent and submit them your surveyors report.

Outline your concerns re the issues and say you are looking at approx coatings for remedying.

Put it to the agent that you are still interested in the property and would like to complete the purchase (if you still do) but ask is there room for negotiation on the sale price.

Come back with your costings. Give them a new amount you would be prepared to pay. Be reasonable and possibly prepared to compromise/negotiate/ meet somewhere in the middle. If you are not you will either walk away or the vendor will.
 
The legal status is that the property is still on the market and your deposit (paid to the selling agent?) is merely an expression of interest.

I would be reluctant to supply the surveyor's report to the vendors free gratis as it has cost you money and is your private document. By all means have the repairs costed and tell the vendors you want the selling price reduced in the light of the defects. If they refuse, tell them the deal is off and demand your deposit back.
 
2ForJoy said:
Thankyou for that very helpful ....it is an executor sale & we will supply surveyors report when asking.
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From experience it is best to seek a meeting with vendors in person to explain the situation. A bit more difficult with an estate sale of course but worth an attempt.

Ideally agree a discount with vendors and present it to both solicitors.

With the solicitors negotiating for you there is more scope for crossed wires, delay, and of course expense.
 
mathepac said:
The legal status is that the property is still on the market and your deposit (paid to the selling agent?) is merely an expression of interest.

I would be reluctant to supply the surveyor's report to the vendors free gratis as it has cost you money and is your private document. By all means have the repairs costed and tell the vendors you want the selling price reduced in the light of the defects. If they refuse, tell them the deal is off and demand your deposit back.
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Thankyou for this very helpful
 
mathepac said:
The legal status is that the property is still on the market and your deposit (paid to the selling agent?) is merely an expression of interest.

I would be reluctant to supply the surveyor's report to the vendors free gratis as it has cost you money and is your private document. By all means have the repairs costed and tell the vendors you want the selling price reduced in the light of the defects. If they refuse, tell them the deal is off and demand your deposit back.
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Thankyou for your response very helpful yes deposit paid to estate agent.
 
rustbucket said:
In my opinion then that is in your favour

There could be a number of beneficiaries so ‘the hit’ may not be as severe.

Executors sales tend to want to go smoothly as the property may be empty and there can be complications re that etc

If the issues are genuine and you have them costed go back to the agent and submit them your surveyors report.

Outline your concerns re the issues and say you are looking at approx coatings for remedying.

Put it to the agent that you are still interested in the property and would like to complete the purchase (if you still do) but ask is there room for negotiation on the sale price.

Come back with your costings. Give them a new amount you would be prepared to pay. Be reasonable and possibly prepared to compromise/negotiate/ meet somewhere in the middle. If you are not you will either walk away or the vendor will.
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That sounds good... Sometimes it's hard to know how exactly to approach/ word it so above very helpful thankyou
 
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.
 
2ForJoy said:
Thankyou for this very helpful
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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.
 
mathepac said:
I would be reluctant to supply the surveyor's report to the vendors free gratis as it has cost you money and is your private document. By all means have the repairs costed and tell the vendors you want the selling price reduced in the light of the defects. If they refuse, tell them the deal is off and demand your deposit back.
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Of what use would the report be if they didn't provide it ?
The document has no value at all to the buyer if they don't buy the house, it would have served its purpose if they do. I would try and get the value from the document and use it as the proof positive of where your issues are coming from. With the surveryors report, the buyer has a reasonable position, without it, not so much (imo)
 
Rasputin said:
The document has no value at all to the buyer if they don't buy the house, it would have served its purpose if they do.
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Not so, the report has already yielded its value to the OP. The value of these reports is information.

That information can offer reassurance that all is good with the property, it can ensure you avoid purchasing a problem property, or at times negotiate a reduced price.
 
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