This post covers everything you need to know about how to negotiate a house price down after a survey.
Even if you’ve already agreed on a price, homebuyers can renegotiate as a house purchase is Subject to Contract (which can change at any time). So, after a surveyor has completed a survey, you may find that you should negotiate a lower price due to defects.
Neither the estate agent nor the house seller would probably have known about the structural issues as a valuation doesn’t cover that. That’s why it’s recommended to get your survey and to use the results to best help you.
What You Need to Negotiate a House Price Down
You will need to get an RICS surveyor and choose the type of survey you wish to build evidence that the house price should be lowered.
As a homebuyer, you’d be wise to get a Full Building Survey before purchasing a house. With a survey report, you will become aware of all the potential structural defects. You will then be able to make an informed decision regarding the property purchase – if they find no faults, you can buy the house with confidence.
But if there are problems with the property, you may choose to walk away; you could ask the house seller to make the relevant restorations or negotiate the house price down.
Most people hate the idea of negotiating but trust us; it’s nothing to fear. After your full building survey, you will have all the transparent information you need to successfully negotiate a house price based on the potential repairs that the property needs.
However, it’s important to note that neither the HomeBuyers Reports (which is a less thorough survey) nor the Full Building Survey provides a cost estimate for the defects or repairs. It will only list all the issues, and it’s then up to you to calculate the cost.
Our London, Surrey, and Kingston surveyors, however, are happy to give their professional advice.
As well as this, your surveyor may also recommend further reports, depending on which initial survey you’ve chosen, for you to gather as much information as possible to make your case to the house seller. The idea is that you want to have a solid chance for a price reduction – one that the house seller cannot dispute.
How to Negotiate the House Price Down After the Survey
Once you approach the house seller, the vendor may ask for follow-up reports to do their estimations, and for that reason, you must be fast with their requests to avoid re-marketing.
Once you have all the information needed from the survey(s), you can renegotiate the house price through your agent.
You should keep in mind the amount you’ll be willing to accept and the initial number you quote. You should be prepared for some back-and-forth between you and the vendor.
They may eventually choose to keep the initial price up to make the repairs themselves, saving you from the hassle. But then you must consider how well they will complete the job. Whichever option you choose, make sure you’re entirely happy with it.
Be Transparent with the House Seller
There is no point in playing games with the vendor. Show them the report and all the evidence you have, along with the exact reasons you feel they should reduce the house price.
While you should remain tactful in these instances, you should feel confident. The vendor will know that finding a new house buyer will be time-consuming and costly, not to mention another buyer may find the same faults, so remember, the ball is in your court.
If you have any more questions about how to negotiate a house price down after a survey, feel free to contact us with your query.