Negotiating the House Price After a Survey: What You Should Consider
Congratulations on finding a home you love and having your offer accepted! After this exciting milestone, most people have a house survey carried out before completing the purchase. A house survey is a detailed inspection of a property that highlights any issues or defects that the property may have. It is important to note that the survey will affect your decision on the purchase price, and sometimes the results of the survey may uncover issues that were not previously known.
Can you renegotiate the purchase price after a survey?
Yes, you can renegotiate the purchase price after a survey. Your offer to purchase the property remains “subject to contract” (STC) until the exchange of contracts. This means that you can change your mind or renegotiate the price at any time, especially if the survey report reveals issues with the property. The value of the property is dependent on the report’s outcome, and the survey report is a vital negotiating tool.
Negotiating the purchase price after a survey
It’s reasonable to negotiate the purchase price after a survey, as neither the vendor nor the estate agent may have known about any problems beforehand. Being upfront with the vendor about the survey results and any costs associated with fixing them is a fair reason for renegotiating the price. It’s much easier to negotiate with the vendor if you share the survey report with them, so they can see the issues themselves.
However, it is essential to be honest with yourself too. Are you prepared to lose the property if the vendor pulls out because you’ve changed your offer price? If you’re not willing to part with the full offer and the vendor is not willing to negotiate, the deal may fall through. The difference in perceived value or the cost of fixing any problems should be considered, and whether saving a certain amount is enough to go back on the deal. Keep in mind that a house is only worth what someone is willing to pay for it.
Gazundering vs renegotiating
It’s important to note that gazundering is not the same as renegotiating. Gazundering is the act of lowering the previously agreed sale price just before signing the contract, which is unethical. Changing your offer price after performing a survey is not considered gazundering because surveys are completed to determine the property’s condition, and buyers are within their rights to act upon the results.
Conclusion
In summary, negotiating the purchase price after a survey is common, and buyers should be upfront with vendors about the survey results and costs associated with fixing any issues. It is important to be honest with yourself and consider whether the savings are enough to go back on the deal. If you have any further questions or require advice on moving house, contact your local mortgage adviser.
Common questions about negotiating house price after survey
Yes, you can renegotiate the house price after a survey reveals issues with the property. The survey report may form part of the contract, and if you require the vendor to make repairs or alterations, this should be included in the contract. The survey report is a vital negotiating tool.
It’s much easier to negotiate with the vendor if you share the survey report with them, so they can see the issues themselves. Be upfront with the vendor about the survey results and any costs associated with fixing them. The difference in perceived value or the cost of fixing any problems should be considered.
If the vendor refuses to negotiate on the price, you may need to consider whether you are willing to lose the property if they pull out because you’ve changed your offer price. Keep in mind that a house is only worth what someone is willing to pay for it.
Yes, the survey report is a vital negotiating tool. You can use it to negotiate with the vendor, and it may form part of the contract.
Renegotiating the purchase price after a survey is common, and buyers should be upfront with vendors about the survey results and costs associated with fixing any issues. Gazundering, on the other hand, is the act of lowering the previously agreed sale price just before signing the contract, which is considered unethical.
Yes, it’s reasonable to negotiate the purchase price after a survey, and being upfront with the vendor about the survey results and any costs associated with fixing them is a fair reason for renegotiating the price.
