After finding a home you love and having your offer accepted, the next step for many buyers is to commission a house survey before finalising the purchase. A house survey provides an in-depth assessment of the property, highlighting any potential issues, from minor cosmetic defects to more serious structural problems. The results of this survey can directly impact your decision on whether to proceed with the purchase, and they often provide grounds for renegotiating the price.
Can You Renegotiate the Price After a Survey?
Yes, buyers can renegotiate the price after a house survey. Since the sale is “subject to contract” (STC) until contracts are exchanged, you are not legally bound to the agreed price and can revisit your offer based on the survey findings. If the survey uncovers significant issues that could reduce the property’s value or require costly repairs, it is reasonable to request a price reduction or ask the seller to cover repair costs.
When to Consider Renegotiating
Survey reports can reveal a variety of issues, some more serious than others. The type of problem and the estimated cost of fixing it will determine whether renegotiating is appropriate. Common issues that may warrant a price negotiation include:
- Structural issues such as subsidence or roof damage
- Damp or mould problems that could require expensive treatments
- Electrical or plumbing defects that might need extensive repairs
- Outdated heating systems that need replacement
- Asbestos or other hazardous materials that require specialist removal
If any of these problems are identified, it is a good idea to seek professional estimates for the cost of repairs. This information can be used to support your request for a reduction in the purchase price.
How to Negotiate the Price After a Survey
- Review the Survey Report Thoroughly
- Once you receive the survey report, assess the issues carefully. Make a list of the problems that could impact the property’s value or require immediate attention. Minor cosmetic issues may not justify renegotiation, but more significant problems might.
- Get Estimates for Repairs
- For major issues, it’s helpful to obtain quotes from contractors to determine how much repairs will cost. This gives you a clear idea of the financial impact and provides evidence when discussing the price with the seller.
- Contact the Seller
- Approach the seller or their estate agent to discuss the findings. Be clear about the issues raised in the survey and present any repair estimates you’ve gathered. Request a price reduction that reflects the costs, or alternatively, ask the seller to cover the repair work before completion.
- Be Prepared for a Range of Responses
- Sellers may respond in different ways. Some may agree to a reduction or offer to fix the issues, while others may refuse to renegotiate. Be prepared to decide if you’re willing to proceed at the original price or walk away from the deal.
Gazundering vs. Renegotiating
It’s important to distinguish between legitimate renegotiation based on new information from the survey and gazundering, which is unethical. Gazundering occurs when a buyer lowers their offer at the last minute, just before contracts are exchanged, without a valid reason. Renegotiating due to unforeseen issues identified in a survey is not considered gazundering, as surveys are intended to provide detailed information on the condition of the property.
Things to Consider Before Renegotiating
While renegotiating can lead to a better deal, there are some important factors to weigh:
- Market Conditions: In a strong seller’s market, where demand exceeds supply, sellers may be less willing to renegotiate, knowing they can find other buyers.
- Risk of Losing the Property: If the seller refuses to reduce the price, you need to decide whether you’re willing to walk away. Consider how much the property is worth to you and whether the potential savings justify the risk.
- Financing Implications: If the survey reduces the property’s value significantly, your mortgage lender may adjust their offer accordingly, meaning you could need a larger deposit or have to reapply for a new mortgage.
Common questions about negotiating house price after a survey
Yes, it’s common to renegotiate after a survey. If significant problems are found, the survey becomes a tool to justify a lower price or request repairs. Use the report to open a conversation with the seller about adjusting the offer.
Share the survey findings with the seller and be clear about the specific issues and estimated repair costs. Be respectful, stick to the facts, and explain why you’re seeking a reduction or asking for the issues to be fixed.
If the seller refuses, you need to decide whether to accept the original price or walk away. Consider how much the issues will cost to repair and whether the property is still worth the investment.
Yes, a survey report provides evidence of issues and helps justify your request. Sellers are more likely to take your concerns seriously when the issues are documented by a professional.
No, renegotiating based on survey results is completely fair. This is different from gazundering, which is lowering the price without a valid reason at the last minute, a practice viewed as unethical.
Need to rethink your mortgage options?
Explore our remortgage services for reliable, tailored solutions.
